The importance of access to credit

Access to credit is vital for financial stability and inclusion. Many consumers rely on regulated credit to manage expenses, make essential purchases, or handle unexpected costs. However, increasing regulatory scrutiny on affordability, interest rates, and lending criteria makes it harder for lenders to operate.

One of the biggest challenges is the shrinking credit availability for those who need it most. Tighter affordability rules, limits on interest rates, and higher compliance costs mean that many consumers struggle to access mainstream credit options. As a result, some may turn to unregulated alternatives, increasing their financial risk.

The regulatory environment remains uncertain, with ongoing reviews of high-cost credit, buy-now-pay-later (BNPL) products, and new lending models. Lenders must adapt to these changes while ensuring they can still provide sustainable lending options.

Maintaining a functioning credit market is crucial for striking a balance between consumer protection and financial inclusion.

CCTA continues to advocate for proportionate regulatory approaches that protect consumers without restricting access to credit. We engage with policymakers, regulators, and industry stakeholders to ensure that credit remains accessible and fair. Our resources and insights help members stay informed and compliant in an evolving market.

Balancing regulatory expectations with financial inclusion is increasingly challenging. Stay informed about policy changes and strategies to maintain responsible lending by accessing our industry updates, participating in our advocacy efforts, or engaging with our expert team.