HM TREASURY News
Release (131/107) issued by The Government News Network on 22
November 2007
HM Treasury and
the Department for Business, Enterprise and Regulatory Reform
today published a consultation document on proposed changes to the
Consumer Credit Act 1974 to prevent the dual regulation of mortgages.
Regulation of Modified Credit Agreements: a consultation asks for
views on a proposed change to the Act to ensure that the
regulatory regimes of the Financial Services Authority and the
Office of Fair Trading for mortgages remain mutually exclusive.
The proposed change will provide clarity on the regulatory
position and reduce the potential burdens associated with dual regulation.
The Economic Secretary to the Treasury, Kitty Ussher MP said:
"I have been concerned by suggestions that there could be
confusing overlap between the FSA and OFT on mortgage regulation,
as this would cause difficulties for industry and consumers alike.
So today I am launching a consultation that aims to provide
greater clarity of regulation for both lenders and borrowers.
"In line with the Government's commitment to open and
transparent, principles-based regulation, this proposed change
seeks to minimise the regulatory burden on businesses while
safeguarding important consumer protections."
Parliamentary Under-Secretary of State for Trade and Consumer
Affairs Gareth Thomas MP said:
"These proposals are good for business and good for
consumers. We are maintaining the existing levels of protection
for borrowers, removing unnecessary burdens on business and
ensuring that extra compliance costs are not passed on to consumers."
The consultation closes on 14 February 2008.
NOTES TO EDITORS
1. Following changes to the regulation of consumer credit
business as a result of the 2006 Consumer Credit Act, the
Government proposed legislation to ensure that the regulatory
regimes of the FSA and the OFT for mortgages remain mutually exclusive.
2. The document Regulation of Modified Credit Agreements: a
consultation is available at: http://www.hmtreasury.gov.uk/consultations_and_legislation/regulation_credit/consult_regulation_credit.cfm
The closing date for responses is 14 February 2008.
3. Consumer credit is regulated by the Consumer Credit Act 1974,
which is administered by the Office of Fair Trading (OFT).
Following widespread consultation, the Government brought forward
legislation to bring the sale and administration of residential
first charge mortgages within the scope of the Financial Services
Authority (FSA). The FSA took responsibility for this in October 2004.
4. Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on 020 7270 4558, or by email to public.enquiries@hm-treasury.gov.uk
5. This press release and other Treasury publications and
information are available on the Treasury website at http://www.hm-treasury.gov.uk.
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