Divorce: Civil Proceedings

(asked on 7th January 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will review the transparency, clarity and regulation of litigation loans for divorces to ensure that customers are fully aware of the implications of those loans before taking them out.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 14th January 2020

On 1 April 2014, the Government fundamentally reformed regulation of the consumer credit market, transferring regulatory responsibility to the Financial Conduct Authority (FCA).

Like other types of credit, litigation funding in the form of credit is regulated by the FCA and therefore its Consumer Credit Sourcebook applies to these products.

The FCA is looking at whether consumer harm needs to be mitigated in this sector and continues to monitor new firms providing credit to fund legal fees.

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