UK regulators have told eMoney companies that some practices need to change.
Financial Conduct Authority (FCA) Director of Payments and Digital Assets Matthew Long said: letter We will notify CEOs and directors of eMoney companies on Tuesday (February 21st) ahead of the new consumer tax rules that take effect July 31st.
“For many companies, meeting their obligations will require significant changes in culture and behavior,” Long wrote in the letter.
Consumer taxes are a cornerstone of the FCA’s strategy to set higher consumer protection standards for financial institutions.
Long’s letter arrives about a month after January 25th. director The FCA website says the organization has highlighted areas of focus and hopes companies will prioritize them following an implementation review at that time.
The mandate introduces new rules on products and services, pricing and value, consumer understanding and consumer support, Long wrote in a letter Tuesday.
Among the suggestions made in Long’s letter is that eMoney companies offer several different methods of customer authentication. Make sure their rates and fees match the company’s actual costs. Make it clear to customers which products are regulated and which are not, and provide customer support through various channels, not just online.
Long also said companies should consider how they handle suspected cases of fraud, especially approved push payment scams.
“While we recognize that these facts are difficult to establish, businesses should make sure they feel they are victims and that their treatment of distressed customers is not overly harsh or unsupportive. There is,” writes Long.
In June, it was reported that there was a widespread “epidemic” of authorized push payment scams in the UK where scammers tricked victims into transferring money to their accounts.
According to reports, this type of fraud will increase by 40% in 2021.
“We expect consumer obligations to become a top priority for you personally,” Long said in the letter. Leaders have an important role to play here.”
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