Please note that this document has a law stated date, which means that it is no longer maintained. For more information on the reason for this, see the following section of this note: FCA withdraws guidance and undertakings on unfair terms.

An explanation of how unfair terms in financial services contracts are enforced in the UK under the Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2083) (UTCCRs). The note considers the interaction between the FCA's treating customer fairly (TCF) principle and the UTCCRs, issues relating to the interpretation of the UTCCRs and the FCA's expectations of firms in this area. It also looks at common themes arising from undertakings provided by firms to the FSA and the FCA to amend unfair terms.

The UTCCRs will be replaced by the Consumer Rights Act 2015 (CRA 2015) on 1 October 2015. This note provides a brief overview of the implications of this on financial services firms.