DEMSA Key themes

What you need to know this week Chancellor’s planned welfare cuts expected to impact consumer confidence and financial resilience. FCA releases report on their vulnerability guidance (FG21/1), highlighting governance focus on outsourcing. StepChange’s 2024 Impact Report examines financial vulnerability among women and coerced debt cases. Insolvency Service publishes IVA outcomes and provider data for 2024, with notable trends in termination rates and market concentration. Ofcom updates Call Line Identification (CLI) guidance to combat scam calls, effective 29 January 2025. FCA… Read more

What You Need to Know This Week FCA removes the requirement for a Consumer Duty Board Champion. Ofgem announces a 6% increase in the energy price cap to £1,849 from 1 April 2025. TransUnion research shows 20% of UK adults identify as financially vulnerable. FCA to hold a vulnerability webinar on 11 March 2025. Encore Capital Group shut down following an Insolvency Service investigation. FCA finds 83% of financial advisers are delivering suitability reviews. Desmond Hudson appointed as new CSA… Read more

What you need to know this week FCA email deletion policy clarified: regulatory records retained for 25 years. ECB consultation on 2025/26 business plan, responses due by 12 March. Affordability assessments under Consumer Duty under review post-PS24/2. Personal insolvency figures for January 2025 show a 12% year-on-year increase. Second-charge mortgage market grew by 16% in December 2024. Lloyds sets aside £1.2bn for motor finance commission claims. Ofgem addresses concerns over back billing and energy debt. Rising operating costs impact Fair… Read more

What You Need to Know This Week Consumer Duty and IVAs: Increased scrutiny on creditor voting and IVA variations discussed at a Credit Strategy roundtable. UK Economy Growth: The economy grew by 0.1% in Q4 2024, driven by construction and services, while US inflation rose to 3% in January 2025. Insolvency Service Leadership Change: Chief Executive Dean Beale to step down in May 2025, initiating a recruitment process. Fraud, Credit, and Compliance Convergence: Financial services firms are integrating these functions… Read more

What you need to know this week The Bank of England has reduced its growth forecast for 2025 to 0.75% and cut interest rates to 4.5%. Homeowners on mortgage tracker deals will see a typical £29 fall in monthly repayments due to the interest rate cut. Abby Thomas has stepped down as CEO of the Financial Ombudsman Service; interim leadership is in place. The Financial Ombudsman Service will start charging Claims Management Companies £250 per case from April 2025. The… Read more

What you need to know this week Canada and Mexico announce retaliatory tariffs in response to new US import taxes. AstraZeneca cancels a £450m expansion due to reduced government support. Significant attention on welfare reform following pre-election promises with a focus on distinguishing genuine claimants from those gaming the system. Barclays resolves payment issues but continues updating customer bank balances. The FCA writes to claims management firms emphasising Consumer Duty compliance. The next Consumer Understanding challenges event is scheduled for… Read more