Deferred Payment Credit comes within the FCA’s perimeter

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• The firms that refine their disclosure processes, embed durable medium solutions, and recalibrate affordability assessments will be well‑placed to maintain a smooth customer journey while meeting regulatory expectations

  80% confidence

• Borrowers will get the ability to complain to the Financial Ombudsman Service but won't be eligible to claim compensation from the Financial Services Compensation Scheme

  80% confidence

• If DPC lenders conduct hard searches at credit reference agencies each time a borrower enters into a new DPC agreement, high-frequency borrowers are likely to be negatively impacted as a result of multiple searches, even where they have a perfect repayment record

  80% confidence

• Consumer Duty will be the FCA's chief way of policing DPC lenders given that the new rules deliberately lack prescription

  80% confidence

• DPC rules will apply from 15 July 2026 and require DPC lenders to provide borrowers with pre-contractual information, information during the DPC agreement and when a customer misses payment, carry out creditworthiness and affordability assessments, complete regulatory reporting, and comply with Consumer Duty

  80% confidence

• For some DPC lenders, the compliance burden and FCA expectations may prove to be a stretch too far and we may see some consolidation of lenders, and others withdraw from the market entirely

  80% confidence

• Meaningful additional disclosure will help borrowers better understand the product they are taking and make informed choices, but will also introduce friction into the customer journey and may increase customer drop-off

  80% confidence

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