Fee charging credit brokers

The FCA have implemented new rules from the 2nd January 2015. The new rules impact any broker charging fees to customers and cover new requirements around disclosure, website statements and regulatory reporting.

The FCA has raised concerns about the practices of some credit brokers, particularly in the high cost short term credit (HCSTC).

Their key concerns are:

* Consumers not realising they are dealing with a broker rather than a lender

* The lack of informed consent to the taking of fees

* Consumers being mislead as to the purpose of giving their payment details

* Firms passing on customer details without informed consent

* Consumers facing difficulty in identifying the firm that has taken a payment, and in obtaining a refund from the firm or a response to their complaint

See the attached document for guidance on the new rules. PS 14-18