MSE News: Consumers promised swift financial justice under new regulator

Consumerist

mo786uk wrote: »

That is a reactive way of operating . . .

Any intervention by a regulator will generally be a reaction to something that has already happened but early intervention on matters would effectively reduce the need for super complaints from watchdogs and free up the Ombudsman from having to deal with the likes of PPI complaints by the million in the future.

mo786uk

Its a chicken and egg situation as the first defence a business has is 'i havent done anything wrong - prove i have' - so early intervention is tough if the issue is not blatantly wrong.

Is the Government going to give the FCA really draconian powers to shut things down on its own whims? I would question it.

The second defence a business has is 'well that is one issue but we have x millions of happy customers' - another hurdle for a regulator to overcome as a company that is generally compliant but has an issue will always raise that defence and it often works in court.

Consumerist

mo786uk wrote: »

Its a chicken and egg situation as the first defence a business has is 'i havent done anything wrong - prove i have' - so early intervention is tough if the issue is not blatantly wrong. Is the Government going to give the FCA really draconian powers to shut things down on its own whims? I would question it.

The "promise" is that the regulator can stop a practice for a year while the matter is investigated more fully.

The second defence a business has is 'well that is one issue but we have x millions of happy customers' - another hurdle for a regulator to overcome as a company that is generally compliant but has an issue will always raise that defence and it often works in court.

Presumably such matters would continue to be dealt with by the Ombudsman.