Consumer Credit Act 1974 (CCA) reform: summer recap

The FS Bill had its first reading in the HoL on 19 May 2026 and its second reading on 8 June 2026. It is currently at committee stage in the HoL and is yet to go through the House of Commons (HoC). The provisional start date for the report stage in the HoL is 7 September 2026.

The HoC Library published a research briefing on consumer credit on 29 July 2026, including details on the current reform and proposed partial repeal, with a view to how these changes affect borrowers, buy-now-pay-later regulation and car finance mis-selling. Overall, the briefing emphasises the shift from information requirements and consumer rights sitting in primary legislation and being moved into FCA Rules, while removing the CCA's automatic sanctions for non-compliance. Firms are also left with considerable uncertainty around complex consumer rights and protections, with further policy work on the way.

In light of HMT's policy statement, the FCA has established that it intends to incorporate existing consumer credit rules into its Handbook having particular regard to the Consumer Duty. It believes that this approach will enable it to bear in mind the entirety of the consumer credit life cycle.

Firms are waiting for the transitional rules and the new FCA rules. We don't expect them for some time. In the interim we have been working through the FS Bill to figure out what is left in the CCA and how the FCA's rule making powers could impact the way that new FCA rules are implemented. Over the next few weeks, we will be publishing articles highlighting areas that firms may want look at.