Consumer Credit Regulatory Burden Recedes for Law Firms?

As most law firms will know, the SRA has recently withdrawn from regulating consumer credit activity for such firms.

Such withdrawal would have required firms to seek authorisation from the FCA to continue carrying out this type of work as mainstream activities from October this year (i.e. in a way which brings the activity outside the “ incidental activities exemption” for professional firms-on which more below).

However, undoubtedly in response to this, a proposed  amendment to the Regulated Activities Order (“the RAO”) (which brings consumer credit activities within the FCA’s regulatory remit) will extend the definition of the exclusion which relates to firms carrying out certain consumer credit activities involving litigation. At present there has been doubt about whether pre litigation activity falls within this exclusion, as the exclusion  is expressed to cover “contentious business”.

Read the full article on our website dedicated to Consumer Credit»


This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

FCA Consumer Credit Regime

1 April 2014 saw the start of a new regulatory regime for the consumer credit industry. It is vital to understand what your business should be doing to ensure it will remain compliant. DWF are on hand to help you navigate the changes which lie ahead and ensure that you have all of the information and resources you need.


David Wood


I advise clients in all sectors on asset and consumer finance documentation and procedures and FCA consumer and mortgage credit regulation.