Regulatory Alerts2019-03-01
PS19/6: Rent-to-own price cap – feedback on CP18/35 and final rules
The Financial Conduct Authority issues final rules imposing a rent-to-own price cap effective 1 April 2019 to protect vulnerable consumers from excessive total costs. The cap limits total credit charges to 100% of the product's base price and requires firms to benchmark these prices against retail rates. The regulator also grants micro-enterprises until October 2019 to comply with existing products and commits to an impact evaluation of the benchmarking process in April 2020.
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