Latest news with #consumer protections
The Independent
4 days ago
- Business
- The Independent
Government launches water ombudsman to boost consumer protection
Customers will be given stronger protections against water firms under government plans to restore trust in the beleaguered industry. Steve Reed is setting up a new water ombudsman with legal powers to resolve disputes, rather than the current voluntary system that is thought to lack teeth. The environment secretary is embarking on 'the biggest overhaul of water regulation in a generation' amid growing anger at poor service, spiralling bills and the pollution of Britain's waterways. He pledged on Sunday to cut pollution in Britain's rivers in half by the end of the decade, eliminating it completely by 2035. And on Monday he will outline the latest changes, which will expand the role of the Consumer Council for Water (CCW), bringing the sector into line with other utilities by creating a legally binding consumer watchdog. The ombudsman will also provide a single point of contact for consumers with complaints, instead of leaving them uncertain about where to go. The Department for the Environment, Food and Rural Affairs said the new watchdog would help "re-establish partnership" between water companies and consumers. In May, a survey by the CCW found trust in water companies had reached a new low, with less than two-thirds of people saying they provided value for money. Only 53 per cent said they thought what water companies charged was fair, even before the impact of a 26 per cent increase in bills that came into effect in April. The new ombudsman is part of Mr Reed's wider plans for a "root and branch reform" of the water industry, set to be unveiled alongside a major review of the sector on Monday. Following publication of the review, he is expected to say: "The water industry is broken. Our rivers, lakes and seas are polluted with record levels of sewage. "Water pipes have been left to crumble into disrepair. Soaring water bills are straining family finances. "Today's final report from Sir Jon Cunliffe's Independent Water Commission offers solutions to fix our broken regulatory system so the failures of the past can never happen again." The key recommendation is expected to involve scrapping Ofwat and creating a new regulator, which could incorporate the work of the CCW. Mr Reed on Sunday promised to make the UK's rivers the cleanest since records began with a £104bn investment to rebuild the country's crumbling sewage pipes. Speaking to the BBC's Sunday with Laura Kuenssberg, Mr Reed said Labour would unleash a 'water revolution' in response to Sir Jon's review. He said leaky pipes and crumbling infrastructure has cost taxpayers tens of billions of pounds, promising the party would look to eliminate sewage pollution in rivers completely by 2035. And, amid speculation Ofwat is to be scrapped, he said the water regulator 'has failed everyone'. Mr Reed said: 'I'm making an absolute commitment, and I'm committed to delivering it. "My intention, assuming I'm lucky enough to still be in the same job in five years' time, I would love to sit here with you then and point to places like Windermere and see how much cleaner they are than today." Asked whether he would put his job on the line, he said: "Politicians come and say we're going to do things. Of course our job should be on the line if we don't."
Daily Mail
6 days ago
- Business
- Daily Mail
Buy now, pay later finally set for consumer protections... but not until summer 2026
Buy now, pay later consumer protections are finally set to be brought in under new proposals from the Financial Conduct Authority. Under the proposed regulation, lenders will be required to check that users can afford to repay BNPL loans, and will have to offer support to customers that get into financial difficulty. BNPL has ballooned in popularity in recent years, with shoppers able to split payments - typically in three or six chunks, rather than having to fork out the full sum up front or stick on a credit card. The new rules will mean that BNPL users can make complaints to the Financial Ombudsman if something goes wrong. The new regulation is expected to come into force in 2026 when BNPL falls under the FCA's remit. The FCA's consultation, open to BNPL lenders, consumer groups and the wider industry, will run until 26 September. Sarah Pritchard, deputy chief executive at the FCA, said: 'We have long called for BNPL products to be brought into our remit, so people can benefit from BNPL while being protected. 'Our regulation will help consumers navigate their financial lives, with checks on whether they can afford to repay, support when things go wrong and access to the right information to make informed decisions. 'We're mainly relying on existing requirements, including the Consumer Duty, rather than proposing to make lots of new rules, supporting growth and allowing firms to innovate.' One in five adults are believed to have used BNPL at least once in the year to May 2024, an increase of 17 per cent on the year prior. One In six choose BNPL due to the minimal credit checks that it has, according to research from TransUnion. However, 48 per cent said they would be more likely to use BNPL after regulation has been passed, according to data from BNPL lender Clearpay. The FCA says there will be temporary permissions put in place, meaning that firms will need to follow FCA rules, but will be able to continue to trade before they are fully authorised. Madhu Kejriwal, chief executive of TransUnion UK and Europe, said: 'We welcome the government's continued focus on bringing BNPL into the regulatory framework. 'Clear, proportionate regulation is essential to protect consumers while enabling innovation and access to flexible payment options. 'I see it as an essential step in the evolution and maturation of the market.' A spokesman for Clearpay said: 'We will support the FCA as it consults on and finalises its specific rules for the sector. 'Coming into force on 15 July 2026, regulation will establish a consistent operating environment and clear compliance standards for all providers. 'Clearpay has always called for fit-for-purpose regulation that ensures consumer protection, provides much-needed innovation in consumer credit and supports the UK's thriving fintech sector.' Some have concerns about the product, however, largely due to the current lack of regulation. Neil Kadagathur, chief executive of Creditspring, said: 'The issue is that it has been designed and marketed as a risk-free solution for everyday spending, but in reality, it can push people into debt without them fully understanding the consequences.
