Mortgage of goods meaning

This Checklist sets out core topics for firms entering consumer credit, addressing essential management and compliance matters within the Financial Conduct Authority (FCA) framework. It organises themes such as authorisation, threshold conditions, the Senior Managers and Certification Regime (SM&CR), systems and controls, business planning, FCA Principles, the Consumer Duty and continuing regulatory duties, including adherence to the Consumer Credit sourcebook (CONC) and the Consumer Credit Act 1974 (CCA 1974). For fuller guidance, including how the application process works, see Practice Note: FCA authorisation of consumer credit firms. Scope and regulatory status Do the firm’s activities amount to regulated consumer credit activities under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO)? See Practice Notes: The general prohibition and implications of its breach and Regulated activities relating to consumer credit Does the firm offer (or plan to offer) buy now pay later (BNPL)/deferred payment credit (DPC) style products?...

The government has also tabled draft legislation in Parliament. Once the statutory instrument (SI) is approved, BNPL products will be regulated 12 months after the SI is made. Lenders should expect the framework in force by end-2026. Although the policy trajectory is set, several key points remain unresolved. Key aspects of BNPL Regime Going forward, regulated BNPL agreements will be called regulated deferred payment credit agreements—deferred payment credit, or DPC. Scope In a boost for merchants, BNPL will be regulated only where a third-party lender is involved. An anti-avoidance measure tackles reseller-style models: where a lender buys the goods and resells them as the merchant, the deal is regulated, not exempt. Most merchants offering DPC will not need FCA authorisation as credit brokers. Unauthorised merchants must have financial promotions approved by an authorised firm—usually the third-party lender, if it holds the relevant permission. The broking exclusion does not currently extend to domestic premises suppliers; this remains under review after late-stage...

What are the practical implications of this case? Appreciating the reach of this ruling will also aid advisers guiding clients on broker commission structures and their potential effect on the interest charged under a conditional fee agreement, together with the precise disclosures that must be made to consumers about any commission in place. Commission arrangements of the sort agreed between Arnold Clark and Clydesdale in this matter were prohibited by the FCA in 2021. Nonetheless, the court acknowledged that a significant number of car purchases occurred in contexts where those or comparable terms existed or might have applied, or could potentially have been present. The Ombudsman concluded that Arnold Clark recommended to Ms Lewis a Clydesdale finance product (the conditional sale agreement) which formed part of the overall transactional package enabling her to acquire the vehicle, alongside the part exchange of her previous car and a modest cash contribution. Arnold Clark’s recommendation of Clydesdale’s finance terms constituted part of its antecedent negotiations ‘in relation to the goods...

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This Practice Note outlines the range of enforcement routes open to creditors where judgment debts stem from consumer credit dealings, generally speaking. For fuller guidance, please refer to the Dispute Resolution module. For further details on authorisation under the Financial Conduct Authority’s consumer credit regime, see Consumer credit regime—overview. General Where a creditor succeeds in court against a debtor, it is generally anticipated that the debtor will honour the judgment or order secured. Yet losing parties do not invariably comply with what has been ordered. Typically, and in many cases, a judgment creditor expects payment of monies owed, delivery up of goods, or some other species of mandatory or injunctive relief granted by the court. The successful judgment creditor may pursue enforcement to obtain compensation or recover a debt, together with enforcement costs, in full. Accordingly, responsibility rests with the judgment creditor to secure compliance in practice. The enforcement mechanisms available are prescribed in the Civil Procedure Rules 1998, SI 1998/3132 (CPR), in particular CPR 70. Enforcement is...

This Practice Note explores key elements of the regulatory landscape for 'buy now, pay later' (BNPL), covering definitions and the relevant regime and scope as currently understood today. It also monitors policy change in this space, including the rollout of a tailored framework for deferred payment credit (DPC) from July 2026. Key points on BNPL and DPC are as follows: BNPL arrangements let a shopper acquire goods immediately and postpone settlement of the full amount to a subsequent date. Terms differ by provider, and the period over which costs are spread can span 30 days to as long as three months The BNPL sector has expanded markedly in recent years, from £0.06bn in 2017 to more than £13bn in 2024. As reported in the FCA’s 2024 Financial Lives Survey, 20% of UK consumers (10.9 million adults) used it in the 12 months to May 2024 The label BNPL is wide-ranging and may cover credit agreements that already fall within regulation as well as unregulated...

Background to exclusions which apply to several kinds of activity Section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) imposes the ‘general prohibition’: no person may perform regulated activities in the UK unless authorised or exempt. For guidance on the prohibition and its territorial reach, see Practice Notes: The general prohibition and implications of its breach and Territorial scope of the general prohibition. ‘Regulated activities’ comprise specified activities undertaken by way of business that relate to ‘specified investments’ or any property to which the specified activity pertains. Here, ‘specified’ means designated by HM Treasury. The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO) sets out the activities and investments that are so specified. For further detail on what amounts to regulated activities, see Practice Note: What are regulated activities? For an explanation of the meaning of ‘by way of business’ in the insurance context, see Practice Note: What does ‘by way of business’ mean?...