The Financial Conduct Authority (FCA) has launched a 'Call for Input' on a planned review of retained provisions of the Consumer Credit Act 1974 (CCA).
The review will consider whether particular CCA provisions remain appropriate or should be modified, updated, or replaced by FCA rules or guidance in order to maintain the right degree of consumer protection in today's market.
In particular, the FCA has requested views on whether to prioritise particular provisions for review, whether provisions should be considered for earlier review and how best to engage with stakeholders.
The FCA said it may prioritise provisions for review if it might provide particular benefits for consumers, or if a provision is particularly burdensome on firms without commensurate benefit.
On the other hand it said it may not review substantively provisions which are working well or where there is a limited flexibility, or where FCA rules could not adequately replicate existing provisions.
Christopher Woolard, director of strategy and competition said: "This is a real opportunity for everyone with an interest in consumer credit to help us plan our review and to shape the regime. We are looking forward to working with consumer groups, trade bodies, firms and others to help ensure that regulation remains appropriate in a fast-changing market."
The Call for Input will close on May 18. The regulator will then finalise the scope of the review in light of responses and publish an update by Q4 2016.
In response, the Finance & Leasing Association (FLA) has said it will be asking its members for input.
Fiona Hoyle, the FLA’s head of consumer and mortgage finance, said: "We welcome this long-awaited review of the remaining provisions of the Consumer Credit Act (CCA), and have already suggested to the FCA a list of out-dated provisions where changes are needed.
"For instance, the wording of statutory notices required to be sent to customers in financial difficulties is abrupt and not in keeping with modern customer service - and a long history of overly complex provisions have, on occasion, left customers and firms with no choice but to seek clarity through litigation.
"We'll be seeking our members' input to help make sure that we get a regime fit for the 21st century."