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Divorce: Civil Proceedings

Treasury written question – answered on 14th January 2020.

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Photo of Yasmin Qureshi Yasmin Qureshi Shadow Minister (Justice)

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.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

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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