Consumer Credit Rules 2011
Published / Last Updated on 19/04/2010
by Ashley Clark, Director
The Government is now implementing the European Consumer Credit Directive to give added protection to consumer borrowers and will come into effect from 1st February 2011.
The new rules for unsecured credit agreements include:
- A 14-day window for consumers to cancel credit agreements without penalty;
- Lenders will have to assess consumers creditworthiness before providing a loan;
- Lenders will have to clearly explain their products to help consumers make the right choices;
A right for consumers to make partial early repayment (this is in addition to the existing right to repay early in full); and
A standardised information form setting out important information details for consumers before they sign a credit agreement.
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