On 16th June 2022, the government announced plans to modernise consumer credit laws to cut costs for businesses and simplify rules for consumers.
The UK government committed to reforming the Consumer Credit Act – which regulates all credit card purchases and personal loans – with a consultation expected to be published by the end of this year outlining the government’s proposals, and seeking views from stakeholders on how the Act should be reformed.
Commenting on the Chancellor’s Autumn Statement which failed to mention such reforms, Co-Founder and CEO at Fluro Nick Harding said: “Today was a missed opportunity. Five months ago, the government announced its commitment to reform the outdated Consumer Credit Act, which has been on the statute book for almost five decades and is no longer fit for purpose. It is regrettable that no update on this important work was provided today. “This reform agenda is vital to ensure that Britain’s regulatory regime keeps pace with innovation and that protections for consumers remain strong, relevant and up to date. “We urge ministers not to let these plans – which enjoy cross party support and backing from businesses – fall by the wayside.”