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suIqUg6X
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Answer
Written answer
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nkmfmSnQ
answer has answering person
Sajid Javid
answer text
<p>Whether to introduce a protected minimum balance in the use of continuous payment authorities (CPAs) is a decision for the Financial Conduct Authority (FCA) to take. The FCA will have the power to introduce</p><p><?notus-xml column=617?></p><p>such a rule from 1 April 2014 when responsibility for consumer credit regulation will transfer from the Office of Fair Trading (OFT) to the FCA.</p><p>Following the transfer of consumer credit regulation to the FCA, existing OFT guidance which prevents lenders using a CPA where it would leave the customer without a subsistence balance (i.e. sufficient funds to meet priority debts and essential living expenses) will be turned into a binding FCA rule which is particularly important given the introduction of universal credit.</p><p>Alongside this, CPAs will be limited to two attempts on any loan (which includes where a firm refinances a loan); no further CPA attempts will be permitted on subsequent days; and CPA part payment will be banned, i.e. a lender can only take payment if the whole owed sum is in the account.</p>
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HM Treasury
written answer has answering body
HM Treasury
HM Treasury
answering body has written answer
suIqUg6X
answering body has answer
suIqUg6X
nkmfmSnQ
question has answer
suIqUg6X
Sajid Javid
answering person has answer
suIqUg6X