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<p>The Government has fundamentally reformed regulation of the consumer credit market.
The transfer of regulatory responsibility for consumer credit from the <a href="http://en.wikipedia.org/wiki/Office_of_Fair_Trading"
target="_blank">Office of Fair Trading</a> (<a href="http://en.wikipedia.org/wiki/OFT"
target="_blank">OFT</a>) to the <a href="http://en.wikipedia.org/wiki/Financial_Conduct_Authority"
target="_blank">Financial Conduct Authority</a> (<a href="http://en.wikipedia.org/wiki/FCA"
target="_blank">FCA</a>) took effect in April. The FCA has stronger powers and is
far better equipped to protect consumers than the OFT.</p><p> </p><p>The Government
has ensured that the FCA has inherited the OFT's powers (both criminal and regulatory)
in relation to misconduct which occurred before 1 April 2014, as well as considerably
strengthening the FCA's powers in relation to misconduct which occurs under the new
regulatory regime.</p><p> </p><p>The FCA has the same powers as the OFT had to investigate
and prosecute offences under the <a href="http://en.wikipedia.org/wiki/Consumer_Credit_Act"
target="_blank">Consumer Credit Act</a> 1974.</p><p> </p><p> </p><p>The FCA has also
inherited the OFT's power to fine, although the OFT's power to fine under the Consumer
Credit Act was limited to fining a firm for breaches of a requirement imposed by the
OFT (and the maximum penalty in this regard was £50,000). The Government has already
strengthened the new regime by giving the FCA the ability to impose unlimited fines
for breaches of regulatory requirements that take place after 1 April 2014.</p>
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