The NPA is working with the pawnbroking industry to ensure compliance with the new FCA Sourcebook (CONC). Members have been prepared and informed of the changes, which include reporting certain information and the required processes, procedures, systems and plans. They have had the opportunity to attend roadshows hosted by the NPA and attended by the FCA to ensure they understand and follow the new rules and regulations.
NPA Chief Executive, Ray Perry, says:
‘Members of the NPA have conformed to Consumer Credit laws and requirements and we are confident our pawnbrokers will continue to do so in the new regime. The NPA has been highly involved in helping the FCA develop appropriate rules for pawnbroking for this change. We see our role as more important than ever in supporting our members to ensure they understand and keep up-to-date with the FCA rules and are able to put in place measures to ensure compliance is maintained. We are keen to continue to demonstrate the professionalism of the sector.'
‘Pawnbroking is just one form of consumer credit that the changes will impact upon. The FCA has been very receptive to understanding how pawnbroking works and why it is different to other forms of lending. It is a loan secured against an asset, such as a gold ring, and can be redeemed at any point during the six or seven month contract with interest payable at the date of redemption. In most cases, if the item is not redeemed any residual surplus is returned to the customer.’
The FCA regime will differ in many ways from the OFT’s. The FCA will have more authority to act in a variety of ways against those who do not conform to the law and process requirements.