In response to general election results today, Stephen Haddrill, director general of the the Finance and Leasing Association (FLA) has called on the government for modernisation of legislative reform so that it is “fit for a digital age.”
This morning the British public woke to the news of Boris Johnson’s victory, with the Conservative party securing a majority of 80 – the largest Conservative majority in a general election since Margaret Thatcher in 1987.
In a blog post, Haddrill said: “At the FLA, we want to see some legislative reform, principally to the Consumer Credit Act (CCA). Is there scope in the government agenda for this? We believe so, but we will need to work with other stakeholders, and consumer representatives in particular.”
“We also need to show that what we’re asking for is already aligned to important key issues – for instance, financing green vehicles, which contributes to net zero emissions; strengthening investment, which would help to drive productivity especially in SMEs, and modernising analogue legislation so that it is fit for a digital age,” he added.
He also said the country following months of turbulence has a mandate to govern for a full term with the numbers to get business through the House of Commons.
Haddrill also highlighted positive market reaction to the results as “a no-deal Brexit risk remains but is less likely than it was.”
He added: “There is every chance that some form of regulatory alignment with the EU will be secured.
“The government has spoken of building stability for business through both its social and economic policies – a one-nation approach that we also need to reflect as we pursue diversity and inclusion in the work of our industry. We are also pleased that the previous austerity policy is now on the wane, which at a time when money is cheap, makes sense.”
In the run up to the general election the FLA published a list of priorities for 2020, where they discuss the Consumer Credit Act (CCA) in detail.
In their agenda the FLA said the 45-year-old CCA is “preventing lenders from providing the help that their customers deserve”.
It says the CCA requires lenders to use prescribed wording which is “severe in tone and content, very likely to deter customers from contacting their lender at the point where they most need help.”
Haddrill concluded: “The election result provides opportunities for FLA members, and coming in as your new DG, I look forward to working with you to help make the best of the next five years.”