As always there have been a number of developments in the field of lending to consumers and micro-enterprises.
- A case was decided on a number of interesting issues under the Consumer Credit Act (Sutherland Professional Funding Limited v Bakewells (a firm) & others [2013] EWHC 2685 (QB)). It related to the provision by a finance company of loans to the clients of a solicitors' firm to pay for disbursements in personal injury claims.
- Responsibility for consumer credit regulations is to be transferred from the OFT to the FCA on 1 April 2014, and the FCA is due to publish its final rules and guidance in February/March 2014.
- Amongst other things the FCA's rules will deal with the regulation of "loan-based crowdfunding", also known as peer-to-peer lending. The FCA also made proposals to protect investors on investment-based crowdfunding platforms in its consultation paper CP13/13 published on 24 October 2013.
- The current version of the Lending Code (March 2011) was revised in December 2013. It applies where a bank is dealing with a consumer or a micro-enterprise (with fewer than 10 employees and a turnover or annual balance sheet that does not exceed €2 million) or a charity (with an annual income of less than £1 million).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.