The CCA changes, which come into effect on 6 April, are a significant ramp-up of the regulator’s authority, giving the OFT greater powers to sanction consumer credit licences in cases of actual or potential consumer detriment.
This will significantly increase the work of the OFT, as will its task of an annual review of the banking sector to see if the now-nationalised Northern Rock is gaining any competitive advantage from its public ownership.
Other important areas of work ahead for the OFT include the implementation of the Consumers, Estate Agents and Redress Act, which forces estate agents to subscribe to a registered redress scheme, and a focus on reducing unnecessary burdens for the businesses it regulates.
Philip Collins, OFT chairman, commented: “Last year, the OFT made a commitment to deliver high impact outcomes that would provide real and significant benefits to consumers. In the coming year, we will continue to build on this commitment, working closely with our partners and stakeholders, focusing our resources on effective project delivery and carrying out evaluation of our work with the aim of delivering benefits for consumers in the most effective and efficient way while avoiding unnecessary burdens on business.”
Richard Fox, chief executive of the Society of Mortgage Professionals, said that the OFT had always lacked authority when dealing with issues brought before it.
He said: “If you compare the enforcement structures of the OFT and the Financial Services Authority, the OFT has always made a lot of noise but has always lacked bite when tackling issues.”
