DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009/107)
issued by COI News Distribution Service on 14 April 2009
The Government
today launched a consultation on the European Consumer Credit Directive.
The Directive aims to protect consumers, offer them new rights
and set out common standards across the EU in relation to a range
of unsecured credit products.
The provisions to be consulted on include:
* A 14-day right for consumers to cancel any credit agreement
without penalty.
* A standardised information form setting out
important information for consumers before they sign a credit
agreement.
* Lenders will have to explain their products to
help consumers make the right choices.
* Lenders will have a
responsibility to check consumer's creditworthiness.
* A
consumer right to make partial early repayment (this is in
addition to the existing right to repay early in full).
Consumer Minister, Gareth Thomas, said: "We want to further
promote responsible lending and responsible borrowing. These
measures will help with that objective.
"It's important we hear the views of consumer groups
and the credit industry to ensure that we improve consumer
protection whilst taking into account the practical concerns of business."
The consultation will close on 10 June 2009. To contribute,
visit: http://www.berr.gov.uk
Notes to editors:
1. Directive 2008/48/EC of the European Parliament and of the
Council of 23 April 2008 on credit agreements for consumers and
repealing Council Directive 87/102/EEC (Official Journal L 133/66
of 22 May 2008) was adopted in April 2008 and must be implemented
in UK law by June 2010. The Directive does not apply to mortgages.
2. The scope of the Directive covers a narrower range of consumer
credit products than existing UK legislation and one issue on
which BERR is consulting is the extent to which provisions should
be applied to all products caught by the Consumer Credit Act. For
example, business lending and loans over E75,000 (£60,260) are
exempt from the provisions of the Directive, whereas in the United
Kingdom lending to micro-businesses up to £25,000 is covered and
we have no ceiling for other credit agreements.
3. For more information go to:
http://www.berr.gov.uk/whatwedo/consumers/consumer-finance/ec-directives/page29927.html
Department for Business, Enterprise & Regulatory
Reform
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk