The Government yesterday published its proposals for the transfer of responsibility for the regulation of consumer credit from the Office of Fair Trading to the new Financial Conduct Authority in April 2014: see here (pdf). A consultation paper was also published by the Financial Services Authority, on behalf of the FCA which will come into existence on 1 April 2013, with respect to the manner in which the FCA will carry out its new functions and powers: see here (pdf).Yesterday also saw the publication by the Government of its response to research concerning the impact on business and consumers of a cap on the total cost of credit and a payday lending compliance review undertaken by the OFT: see here (pdf). The Government has decided that a cap on the total cost of credit would not, at the moment, be the best solution to the problems that have been identified. Alternative approaches are instead outlined including advertising restrictions and OFT enforcement action where lenders fail to respond to the issues that have been identified.
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