View more on these topics

OFT publishes ‘unfair relationship’ guidance

The Office of Fair Trading has published for consultation guidance on how provisions of the Consumer Credit Act 2006 may be used to protect consumers

The Act will allow borrowers to challenge credit agreements in court on the grounds that the relationship between the parties is unfair.

The new ‘unfair relationships’ test will replace the current concept of extortionate credit bargains.

In addition, the OFT and other enforcers will be able to take enforcement action under Part 8 of the Enterprise Act where unfair relationships harm the collective interests of consumers.

The draft guidance provides advice to businesses, their advisers, and consumer organisations, as to how the OFT proposes to use Part 8 powers in relation to unfair relationships.

In acting under Part 8, the OFT’s aim will be to improve trader behaviour and protect consumers generally from abuses in the credit market, but it cannot seek redress for individual consumers.

John Fingleton, chief executive of the OFT, says: The new unfair relationships provision provides important new protection for borrowers.

The draft guidance sets out how we expect to exercise our enforcement powers in relation to it, so that we may assist business in complying with the new law.
We look forward to receiving comments from anyone with an interest in the new provisions.


Marketing Brief

Support is critical in the mortgage industry. Kevin Paterson’s A-Z review rates the marketing material that lenders issue to help brokers with sales and business development.

Lenders must prepare for the worst

Lenders should invest in automating the less glamorous end of the mortgage life cycle involving arrears litigation and repossessions in case interest rates rise, says Frank Eve

Judging networks is getting easier

Networks’ distinguishing characteristics are becoming clear and this is making it easier for brokers to choose the principals that best suit their business needs, says Sally Laker

Advantage Flexishare loan to take market by storm

Advantage is poised to take the market by storm with the launch of its Flexishare product in July, which allows first-time buyers to borrow up to 6 x their income, split between a conventional mortgage and residential ownership loan.The innovative move comes just six months after Advantage was bought by US giant Morgan Stanley. The […]

Brexit and the mid cap buying opportunities

Video update from Mark Martin, Head of UK Equities, Neptune Investment Management With the Brexit referendum scheduled for 23 June, how much risk is priced into the market and is the current volatility a long-term buying opportunity? Watch Mark Martin, Head of UK Equities, and Holly Cassell, Assistant Manager on the UK Mid Cap and […]


News and expert analysis straight to your inbox

Sign up