Credit law gives greater protection

New laws that came into force last week have strengthened consumer protection.

Under the new rules, introduced on 1 February to reflect the European Council's Consumer Credit Directive, customers have:

• up to 14 days to cancel agreements

• the option to make partial repayments ahead of schedule (at present, they are obliged to either pay off the full sum owed or stick to the agreed rate of repayment).

Lenders also have greater responsibility towards their customers. They must now:

• give standardised pre-contractual information to improve comparability

• ensure the customer understands their agreement

• carry out a thorough check on the creditworthiness of the customer.

Information on the types of customer and agreement covered by consumer credit law is available from the Department for Business, Innovation and Skills.

The BVRLA will also have guidance available shortly. If you have any questions in the meantime, contact head of legal services Jay Parmar.

To visit the BVRLA website or to become a member click here...

source: BVRLA