That is why we propose to amend the rules of application to prohibit those we regulate from implementing the following consumer credit activities, in accordance with Part 20: 2 MCD Article 3, paragraph 1, point b) and Article 3, paragraph 1, point b), of the MCD, are also subject to the MCOB 14.1.3R rules at MCOB 14.1.5R. 2CONC does not apply to onshore secured credit contracts, with some limited exceptions in paragraphs (3) and (4). CONC 4.4.2R (4) (pre-contract requirements: credit broker); If you offer credit to these customers, you will probably need to be licensed. This dual regulatory landscape is perhaps most visible in the choice that some disgruntled borrowers may seek a legal remedy (i) either by attempting to argue that their loan should not be enforceable due to CCA violations) or (ii) to obtain redress through a complaint to the company itself (if not resolved to their satisfaction) by a referral to the Financial Ombudsman Service (FOS). According to sections 86B and 86C of the CCA, companies are required to provide debtors with notices of payment, both for a fixed amount and for current account credits, where an account is the sum of two late contractual payments – often after two months in practice (less than three months of payment period proposed in the CFA guidelines for most forms of consumer credit). This will likely result in a number of companies agreeing to a deferral payment agreement while being required to notify the borrower of late payments, which could create a great deal of confusion for borrowers if they are not well managed. This consultation followed a previous consultation in October 2014, during which we asked whether we should opt out of the Part 20 regime with respect to the regulation of consumer credit activities 2. As a result of this consultation, we decided that it was advantageous for us to stay in Part 20, and we developed proposals for proportionate regulatory rules with the CMA to make this possible. In accordance with Part 20, we are required to adopt rules for the provision of consumer credit activities, which must be approved by the FCA and the Legal Services Board (LSB).
These must be in effect until the expiry of the existing transitional provisions 3. The ACF recently extended these provisions until April 2016, provided that we publish our final regulatory agreements in November 2015. As part of this consultation, we will provide opinions on our proposals for regulating the consumer credit activities of SRA-approved individuals and businesses pursuant to Part 20 of the Financial Services and Markets Act 2000 (FSMA). In summary, as a result of the amendments that came into effect on April 1, 2014, the FSMA requires that certain consumer credit activities be regulated. These activities include credit withdrawal, debt adjustment and debt 1 advice. From that date, the regulation of consumer credit activities was transferred from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA). Under Part 20, members of a «Designated Professional Body» (PBO), such as companies approved by the SRA. B are exempt from the requirement to be approved by the FCA to conduct FSMA-regulated activities.