EU Legislation, Initiatives, etc.
BIS: The Department for Business has published proposals for draft regulations to take forward the implementation of the Consumer Credit Directive. These include new requirements to promote responsible borrowing & lending, as set out in the recent Consumer White Paper.
Lenders will have to check consumers’ creditworthiness before they borrow and fully explain financial products. Consumers will also be allowed a 14-day period within which to withdraw from credit agreements. The finalised regulations will implement the requirements of the Directive to provide transparent, standardised information - helping consumers compare products, including the cost of credit on offer.
The provisions are being published in draft form to allow experts to provide feedback on their effect. The intention is for new laws to be introduced by the end of the year – well in advance of the Consumer Credit Directive coming into force in June 2010.
