AC with their noses in the trough

When people have to spend time telling you how good they are at things other people just do for a salary....

From the FCAs website


www.regulationtomorrow.com/eu/fca-finalised-guidance-fairness-of-variation-terms-in-financial-services-consumer-contracts-under-the-consumer-rights-act-2015/

In FG18/7, the FCA outlines a number of non-exhaustive areas that it believes firms should have regard to when drafting and reviewing variation terms in financial services consumer contracts. These include and are not limited to the following:


• the validity of the reason(s) for using the variation term;

• the transparency of the variation term;

• provision for notice in the variation term; and

• provision for the freedom to exit the contract should a consumer not wish to accept the variation.

• The FCA expects firms to consider FG18/7 when they review their existing contracts and when they draft new ones. Firms should ensure that variation terms in their contracts are transparent and not unfair.



brodies.com/insights/corporate/fca-guidance-on-fairness-of-variation-terms-in-consumer-contracts/


• the contract gives the consumer the right to terminate the contract before or shortly after any variation takes effect

When drafting variation terms, firms should note the consumer's right to exit and how this can be exercised. This should include any financial or practical barriers that would prevent them doing so.

• the term strikes a fair balance between the legitimate interests of the firm and the legitimate interests of the consumer

In effect, you must consider the contract from the viewpoint of both sides. The FCA notes that provisions favouring a firm may indirectly serve the interests of the consumer as well when both their rights and obligations are considered under the contract and the benefit of the contract to the consumer is considered.





This as I read it means if you change the T&Cs the customer must have the freedom to exit.


This is what happen at Rate Setter and you had a certain time to exit, from memory 30 days and by not exiting you accepted the new terms.

Has there been a change to the t&C's? Still seems to be version 7.5 from Aug 2020 displayed ... though I note a slight tweak in the removal of quantified fee presumably when it was previously removed. Published FOS complaints regarding fees have been largely unsuccesful

Many thanks for your considered answer. There is still something lingering I don't understand though.

Surely _any_ valid contract can't be changed without both parties agreeing? So this is nothing to do with the FCA but standard law?

Also, if I enter into a contract with say a bank for a say a 4 year fixed deposit agreement and after say only 3 months the bank wishes to no longer honour that agreement how does it get out? Simply refund me? But then hasn't it broken its promise to pay me X% after 4 years ?

Finally, why can't I change the agreement? If I stick some cash into AC or anywhere else, "I would like to insert a new clause that says give me all my money back immediately.....

I don't think it is as simple as "valid contract can't be changed without both parties agreeing", there is force majeure, i.e. it relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise. In this case we are talking about T&Cs which are in effect a contract but may not be exactly the same.

In the case of the Bank, failing any clauses in the T&Cs which allow the bank a get out I would guess they have to pay you the full interest plus capital.

I believe changes that do not affect or ones that benefit in the customer are allowed i.e. the bank promises you 4% fixed interest in the T&Cs but up this to 5% will be allowed, this may be the case that is cheaper for the banks up the rate to attract new customer than to create another account. You may have a case that if this ups you into the 40% tax bracket and lose more than you make due to loss of child allowance etc and the bank won't let you out. All a bit too hypothetical.


In this case it is about whether AC can change the T&Cs even with the clause they have which states they can change the T&Cs, I believe they will be in trouble with the FCA if they do. However as ilmoro  has stated "the t&C's allow the introduction of a fee"  (see his post for more detail) and I would tend to believe him as he is very knowledgeable and his posts are well researched.

I would like to add the cavatte that I am not a legal person I just did a lot of research in first lock in.

Two loans currently being voted on allow AC to collect an extra 2% arrangement fee and to increase their share of the interest going forward. We are only offered a binary choice - allow AC to leech a bit more out of the poor borrower or reject the proposal to the detriment of the poor borrower. I'd like to vote for the extensions but against the fees. Usually I don't vote at all in vain protest.