Overview
- The government, which set out the plan Monday, will shift many prescriptive Consumer Credit Act requirements into the Financial Conduct Authority’s rulebook.
- Borrowers using loans, credit cards, or overdrafts will get clearer and better‑timed information on costs and key terms to help them choose well, with attention to people who struggle with jargon.
- Core legal protections will remain, and the FCA will keep its enforcement powers, including the ability to fine firms that break the rules.
- The reforms will run through the Financial Services and Markets Bill, and the FCA will write detailed rules after consumer testing and ongoing review.
- Debt charities and industry groups welcomed the move, saying it updates a 1974 law and gives lenders room to develop new digital products without weakening safeguards.