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ECRC conference 2014 in Hamburg / News from our partners
After the summer break and the busy year so far for partners of our responsible credit coalition, there are still many developments worth reporting on and sharing views and exchanging on. We encourage our partners to organise the necessary events to gather stakeholders locally, nationally, regionally or internationally in order to continuously challenge existing solutions and generate ideas for alternatives worth considering .
The next main international ECRC conference will be held in Hamburg on 22-23 of May 2014. Mark this date. Send an email to with the subject heading “ECRC conference 2014” and we will make sure to inform you as soon as the programme is available and registration opens.

US news:
Consumer Financial Protection Bureau released the “CARD Act Report,” a report summarizing the CFPB’s views on the impact of the Credit Card Accountability Responsibility and Disclosure Act of 2009 on the consumer credit card market. Part of CFPB duty is to carry out a biennial review of the consumer credit card market, including the effect of the act on the cost and availability of credit and the adequacy of protections for credit cardholders.The report both evaluates the impact of recent credit card legislation and identifies several “risky” card issuer practices that may draw future CFPB scrutiny. Find the full report below.

UK news:
FCA considers to charge cap to payday loans. The FCA is considering capping charges on payday loans as part of a wide-ranging clampdown on the sector. The FCA last week set out how it plans to regulate consumer credit firms from April 2014, when it will take on responsibility for more than 50,000 firms who have existing credit licences. The regulator has proposed capping the number of times a payday lender can rollover loans to two in order to protect consumers from high charges. In addition, the FCA wants to limit the number of times a payday lender can take money from a customer’s bank account using a continuous payment authority to two. The regulator stopped short of capping prices on payday loans at this stage but will revisit the idea after it has taken over regulation of the sector, possibly through a thematic review.
There are two papers on behavioural economics (see below) firstly looking at how consumer biases can lead to a lack of market competition and secondly on how consumers react to different redress and customer contact letters:
“There is evidence that extra information may lead consumers to make poorer decisions by distracting them or making them under or over-react to emotionally charged topics like financial advisers’ conflicts of interest.”

EU news:
EIOPA publishes Action Plan 2014/15 for Colleges and a list of cross-border insurance groups for which a College is in place: The focus of the Action Plan is the further development of consistent risk-based supervision according to Solvency II requirements. One of the goals is to reach a shared view on the assessment of the risk exposure of the group and its major solo entities. Colleges will also discuss and review the progress and consistency of the application of the Solvency II preparatory guidelines at group and solo level.

ID: 48388
Publication date: 20/10/13

Card Act Report

FCA Occasional Paper No.1: Applying behavioural economics at the Financial Conduct Authority, April 2013

FCA Occasional Paper No.2: Encouraging consumers to claim redress: evidence from a field trial, April 2013

The Joint Committee 2014 Work Programme

Created: 24/10/13. Last changed: 24/10/13.
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