Context
The FCA has asked for views on change and innovation in the unsecured credit market, considering how regulation can better support a healthy unsecured lending market, as part of the Woolard Review. This review is being carried out by Christopher Woolard with the assistance of an advisory panel and various roundtable discussions. Full details of the review can be found at https://www.fca.org.uk/about/woolard-review-unsecured-credit
Key points to note
The review is focused on four themes:
- Drivers and use of credit
- To illustrate how different groups of consumers engage with the unsecured market
- To understand the trends around consumer use of credit and where future pressures and challenges may lie
- Change and innovation in the supply of credit:
- To explore how unsecured lending is changing
- To understand how far innovation is acting in customer interests
- The role of regulation in unsecured credit markets
- Considering whether regulation is in the right place overall and core issues in the market are dealt with effectively
- The impact of Covid-19 and the FCA’s response
- How the pandemic has impacted both supply and demand for credit and how this may affect the future market
Next actions
The FCA has asked for responses, together with evidence where possible, to be provided by 1st December 2020 via the online response form https://www.fca.org.uk/woolard-review-call-for-input-response-form or via email to woolardreview@fca.org.uk