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Looking at the The FCA announcement of new rules to tackle poor practice in the credit broking market
The FCA has announced new rules to tackle poor practice in the credit broking market. Such is the concern with which the FCA views some credit broking practices that is has taken the decision to impose the new regulations from 1 January 2015, without first following a consultation process.
According to the FCA 40% of consumer credit complaints relate to credit brokers with 80% of these relating to firms who charge upfront fees. Of major concern are lack of transparency, fees taken without informed consent and customers being misled both as to the purpose of providing payment details and to the nature of the broker.
Commenting on the measures FCA Chief Executive, Martin Wheatley, said “The fact that we have had to take these measures does not paint this market in a particularly good light” adding “I hope that other firms will take note that where we see evidence of customers being treated in a blatantly unfair way, we will move quickly to protect consumers from further harm.”
These latest measures mean that credit brokers have joined banks, payday lenders and others in the list of those who have been seen to act in a way which is not in the best interests of consumers. But these failures of customer care are not just confined to the finance sector. Perhaps it is now time for every business in every industry to make a culture of consumer care their top priority in 2015.