Thu 30 May 2019
It has long been a principle of Scots law that a guarantor (or in proper Scottish legal parlance, a "cautioner") will be discharged from his or her liability under a guarantee (or a "cautionary obligation" in that same parlance) if the underlying contract or arrangement to which the guarantee relates is amended or altered in a material manner without the consent or knowledge of the guarantor.
HM Treasury has issued its Phase 1 consultation paper (CP) on CCA reform.
The CP outlines the government's strategic approach to reform in certain key areas, leaving the Financial Conduct Authority (FCA) to consult later on the detailed implementation. The direction of travel is to repeal many of the remaining CCA provisions and associated secondary legislation, and then recast conduct requirements in the FCA's Handbook, including its Consumer Credit Sourcebook.
From 28 April 2026, banks and PSPs must give 90 days’ notice before closing certain accounts, along with a clear explanation and complaint guidance. This regulatory change enhances transparency and customer protection. Consumer finance providers should review account closure procedures, update terms, and ensure communications meet the new standards to remain compliant.
Following on from my colleagues articles on both the Quincecare Duty and the Supreme Court decision in Philipp v Barclays Bank plc, the High Court has provided further guidance on the Quincecare Duty in Hamblin and another v Moorwand Ltd and another. This case is particularly notable as it involves a derivative action brought by Mr and Mrs Hamblin.
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