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MSE News: 'New FSA' to take over credit card and loan regulation
Former_MSE_Helen
Posts: 2,382 Forumite
in Credit cards
This is the discussion thread for the following MSE News Story:
"Regulation for most financial products will be housed under one roof, the Government has proposed today ..."
"Regulation for most financial products will be housed under one roof, the Government has proposed today ..."
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Comments
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Why does it need a new name instead of just telling the OFT to do its job better?0
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Why does it need a new name instead of just telling the OFT to do its job better?
Most of the problems that people have with payday loan companies are quite legal - i.e the high interest rates. The OFT has no legal pwoers to stop much of it - apart from aggresive debt collection.
The FCA will take over functions from both the FSA and the OFT so no harm in giving it a new name. The main benefit should be that all financial proudcts have one regulator as opposed to many different regulators.
It has also been mooted aroudn that the Consuemr Credit Act will be replaced by FSA style legislation that they use for bank accounts - so its a good time to consolidate and create new legislation etc.
From what I understand, some of the other functions of the OFT will be stripped out - so the OFT may well not exist at all at the end of it, or at the very least have fewer functions.0 -
I hope the new regulator will tackle the following anomaly. We paid a £250 deposit on the website of a company which went bust. When we tried to get our money back under Section 75 of the Consumer Credit Act, the credit card company denied liability.
They said that because the payment had been processed by a third party company, there was no "direct connection" between themselves and the supplier who went bust, so they were not liable.
Eventually, we persuaded the credit card company to make a "goodwill" payment but they were under no legal obligation.
Most consumers hoping that Section 75 will protect their money in these circumstances are probably not aware of this loophole, which needs to be closed.0
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