UNFCOG 1.2 Introduction

This Guide explains the FCA's formal powers under the CRA in relation to unfair and/or insufficiently transparent terms and consumer notices. It does not contain comprehensive guidance on the CRA itself, and you should refer to the CRA for further details.

This Guide also provides guidance on the approach we take before considering whether to exercise our formal powers under the CRA in relation to unfair terms and notices.

The FCA has powers as a regulator and an unfair contract terms enforcer under the CRA. Under the CRA our functions are treated as functions under the Act. This:

1. (1)

   makes the statutory objectives relevant to forming policy that governs the discharge of our functions under the CRA;

2. (2)

   means that any complaints about the FCA's activities under the CRA can be referred to the Complaints Commissioner;

3. (3)

   allows the FCA to make full use of its information disclosure powers;

4. (4)

   allows the FCA to use its power to give guidance;

5. (5)

   protects the FCA against liability in damages in respect of its activities under the CRA; and

6. (6)

   allows the FCA to raise fees to fund its activities under the CRA.

1. (1)

   As such, we may publish on our website details of cases that result in a change in the terms and notices used by the firm. This may happen through either an undertaking by a firm or injunction obtained from the courts.

2. (2)

   Under paragraphs 4(1) and 6(3) of Schedule 3 to the CRA, the FCA has a duty to pass details of these cases to the CMA.

3. (3)

   The CMA also publishes details of cases that it, and other regulators, have dealt with in accordance with the CMA's duties under paragraph 7 of Schedule 3 to the CRA.