Latest news with #FSCS
Scottish Sun
5 days ago
- Business
- Scottish Sun
Major rule change for firms like PayPal and Revolut to protect millions of customers' cash
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MILLIONS of people using payment firms will see their cash better protected due to a major rule change. The Financial Conduct Authority (FCA) is set to enforce new practices to ensure shoppers are offered bigger refunds, and with fewer delays, if a payment firm goes bust. Sign up for Scottish Sun newsletter Sign up 1 The FCA is shaking up its rules for payment firms from next May Credit: Getty The new rules, affecting those using firms like PayPal, Revolut and Wise, come into force from May 7, 2026. The rules will oblige payment firms to prove customer's money is protected through monthly reports. Firms will also have to be audited once a year to ensure they are safeguarding funds, carry out daily checks to keep records of funds and put risk management practices in place so customers' cash is protected should they go out of business. The FCA said it is giving industry nine months until the new rules kick in so it has enough time to prepare. Read more on Money ALL CHANGE Major British bank with 5million customers could disappear after sale to rival It also said the audit rule will not apply to firms holding less than £10,000 in customer funds. Funds held by payment and e-money firms are not protected by the Financial Services Compensation Scheme (FSCS), which entitles you to compensation of up to £85,000 if a financial services firm fails. Instead, they are responsible for safeguarding customers' funds themselves. But this has historically led to money being lost or delays in refunds being issued when firms have gone out of business. A number of payment firms went bust between 2018 and 2023, leaving customers short of cash. Firms that became insolvent, when a business cannot afford to repay its debts, over this five-year period had average shortfalls of 65% of their customers' funds. I chase refunds for a living - how to get your money back Matthew Long, director of payments and digital assets, FCA, said: "People rely on payment firms to help manage their financial lives. But too often, when those firms fail, their customers are left out of pocket. "Most of those who responded to our consultation agreed we need to raise standards to protect people's money and build trust, but any changes needed to be proportionate, especially for smaller firms. "We'll be watching closely to see if firms seize the opportunity and make effective improvements that their customers rightly deserve – this will help us to determine whether any further tightening of rules is necessary." It comes after the FCA launched a consultation looking at safeguarding practices among payment firms last September. Firms were given until December that year to offer their thoughts on the consultation. Payments firms, also known as payment service providers (PSP), are third-party companies that facilitate electronic payments for businesses through various payment methods. Customer use of them has risen in recent years. The FCA's 2024 Financial Lives Survey revealed that the percentage of people using them had grown from 1% in 2017 to 12% in 2024. It also found roughly one in 10 e-money holders in the UK was using e-money accounts as their main day-to-day transactional account. The Sun asked PayPal, Revolut and Wise to comment. FCA consulting on car finance mis-selling compensation scheme MILLIONS of drivers are set to get £950 car financing compensation after the FCA launched a consultation. The regulator confirmed on Sunday it will consult on a redress scheme for motorists stung by extra charges and interest. This follows the Supreme Court's decision last Friday to overturn a ruling that accused companies of breaking the law by not telling borrowers about "hidden" commission payments. Claims about "commission disclosure complaints" impact up to 99% of car finance agreements. However, the UK's highest court sided with the banks, meaning they avoided the possibility of having to pay compensation to millions of drivers over these complaints. Despite this, drivers who took out personal contract purchase (PCP) or hire purchase agreements may still be eligible for compensation, along with those who were subjected to "excessive" commission charges. This is because the FCA has been investigating and considering a financial redress scheme for car finance agreements made before 2021. These claims focus on "discretionary commission arrangements" (DCAs), which applied to 40% of car finance deals. Under DCAs, brokers and dealers could increase the interest rates charged to borrowers without informing them. By doing this, they earned higher commissions. The financial watchdog has now confirmed plans to consult on an industry-wide compensation scheme. This consultation is set to begin by early October, and if the scheme is approved, the first payments could be made in 2026. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Finextra
01-08-2025
- Business
- Finextra
FCA opens retail access to crypto ETNs
Firms will soon be able to give retail consumers access to crypto exchange traded notes (cETNs), under changes announced by the FCA. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Crypto ETNs that retail consumers can access must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange or RIE). Financial promotion rules will apply so consumers get the right information and aren't offered inappropriate incentives to invest. David Geale, executive director of payments and digital finance at the FCA, said: 'Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we're providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.' The Consumer Duty will apply to firms offering these products to retail investors. However, there won't be coverage from the Financial Services Compensation Scheme (FSCS)Link is external . Consumers should ensure they understand the risks before deciding to invest. This is the latest development as the FCA continues to establish a regulatory framework for crypto. We have outlined our crypto roadmap and recently published proposals on stablecoins as well as other aspects of the regime. The FCA's ban on retail access to cryptoasset derivatives will remain in place. The FCA will continue to monitor market developments and consider its approach to high-risk investments.
Western Telegraph
31-07-2025
- Business
- Western Telegraph
Lloyds Bank customers urged to act now or miss out on £185
Their current cash incentive for switching is £185 and runs from Tuesday, 1 July to 28 July 2025. This date is the last day you can both open a new account and start the switch. The payment will be made within ten working days of the switch completion. Lloyds said: "As long as we receive your application before the 28th of July ends, you'll be able to qualify for the switch offer." Looking to get your money moving and start investing? Here's how Lloyds Bank can help you to do just that. Search Lloyds Bank Ready-Made investments to find out more. Bank — Pennies To Pounds (@penniestopound) July 22, 2025 The switch must be via the Current Account Switch Service, according to the terms and conditions from the high street bank. Your money is secure – the Financial Services Compensation Scheme (FSCS) guarantees up to £85,000 per person, per financial institution. This means that if your bank ever went bust, you would be guaranteed your money back (up to £85,000), according to Money Saving Expert, the site founded by BBC and ITV star Martin Lewis. You can only get one payment per person, regardless of how many accounts you open. And you'll miss out completely if you've received a switching bonus from Lloyds or Halifax since April 2020. Recommended reading: MSE detailed: "As well as the upfront switch cash, with Club Lloyds you can choose one of the rewards above each year." "Do note there's a £5/month fee unless you pay in £2,000+ a month," the consumer champion's advice website has also added. It went on to say: "You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £161/year interest) and the debit card has no fees on overseas spending with near-perfect exchange rates. "The switch offer is also available on the Club Lloyds Silver account, one of our top picks for packaged accounts which provides a range of insurance for £11.50/month."
Glasgow Times
29-07-2025
- Business
- Glasgow Times
Lloyds Bank customers urged to act now or miss out on £185
Their current cash incentive for switching is £185 and runs from Tuesday, 1 July to 28 July 2025. This date is the last day you can both open a new account and start the switch. The payment will be made within ten working days of the switch completion. Lloyds said: "As long as we receive your application before the 28th of July ends, you'll be able to qualify for the switch offer." Looking to get your money moving and start investing? Here's how Lloyds Bank can help you to do just that. Search Lloyds Bank Ready-Made investments to find out more. Bank — Pennies To Pounds (@penniestopound) July 22, 2025 The switch must be via the Current Account Switch Service, according to the terms and conditions from the high street bank. Your money is secure – the Financial Services Compensation Scheme (FSCS) guarantees up to £85,000 per person, per financial institution. This means that if your bank ever went bust, you would be guaranteed your money back (up to £85,000), according to Money Saving Expert, the site founded by BBC and ITV star Martin Lewis. You can only get one payment per person, regardless of how many accounts you open. And you'll miss out completely if you've received a switching bonus from Lloyds or Halifax since April 2020. Recommended reading: MSE detailed: "As well as the upfront switch cash, with Club Lloyds you can choose one of the rewards above each year." "Do note there's a £5/month fee unless you pay in £2,000+ a month," the consumer champion's advice website has also added. It went on to say: "You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £161/year interest) and the debit card has no fees on overseas spending with near-perfect exchange rates. "The switch offer is also available on the Club Lloyds Silver account, one of our top picks for packaged accounts which provides a range of insurance for £11.50/month."
South Wales Argus
29-07-2025
- Business
- South Wales Argus
Lloyds Bank customers urged to act now or miss out on £185
Their current cash incentive for switching is £185 and runs from Tuesday, 1 July to 28 July 2025. This date is the last day you can both open a new account and start the switch. The payment will be made within ten working days of the switch completion. Lloyds said: "As long as we receive your application before the 28th of July ends, you'll be able to qualify for the switch offer." Looking to get your money moving and start investing? Here's how Lloyds Bank can help you to do just that. Search Lloyds Bank Ready-Made investments to find out more. Bank — Pennies To Pounds (@penniestopound) July 22, 2025 The switch must be via the Current Account Switch Service, according to the terms and conditions from the high street bank. Your money is secure – the Financial Services Compensation Scheme (FSCS) guarantees up to £85,000 per person, per financial institution. This means that if your bank ever went bust, you would be guaranteed your money back (up to £85,000), according to Money Saving Expert, the site founded by BBC and ITV star Martin Lewis. You can only get one payment per person, regardless of how many accounts you open. And you'll miss out completely if you've received a switching bonus from Lloyds or Halifax since April 2020. Recommended reading: MSE detailed: "As well as the upfront switch cash, with Club Lloyds you can choose one of the rewards above each year." "Do note there's a £5/month fee unless you pay in £2,000+ a month," the consumer champion's advice website has also added. It went on to say: "You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £161/year interest) and the debit card has no fees on overseas spending with near-perfect exchange rates. "The switch offer is also available on the Club Lloyds Silver account, one of our top picks for packaged accounts which provides a range of insurance for £11.50/month."
