On 17 July 2018, HM Treasury published The Consumer Credit (Amendment) (EU Exit) Regulations 2018 together with an explanatory memorandum. This instrument is made using the power in section 8 of the European Union (Withdrawal) Act 2018 in order to address failures of retained EU law to operate effectively or other deficiencies arising from the withdrawal of the UK from the EU.
The draft Regulations amend the Consumer Credit Act 1974 (CCA), the Consumer Credit (Disclosure of Information) Regulations 2010 (the 2010 Regulations), the Consumer Credit (Green Deal) Regulations 2012 (the 2012 Regulations), and the Financial Services Act 2012 (Consumer Credit) Order 2013 (the 2013 Order), to address deficiencies arising from the UK’s exit from the EU. The draft Regulations make minor and technical amendments to address these deficiencies.
Specifically the draft Regulations:
- amend references in the CCA which oblige creditors to not give a notice or disclose certain information to borrowers where prohibited by an “EU obligation”. The obligation not to give notice or disclose certain information is amended so that it applies where prohibited by a “retained EU obligation”;
- amend references in the 2010 Regulations to “Standard European Consumer Credit Information” and “European Consumer Credit Information” and provisions which require disclosure of the creditor’s representative in the consumer’s “Member State” of residence, in the case of distance marketing of consumer credit. However, there will be no substantive change to the information that firms have to disclose to prospective borrowers;
- omit the reference in the 2012 Regulations to the Consumer Credit Directive; and
- omits the reference in the 2013 Order referring to powers of intervention against incoming passporting EEA firms.
The draft Regulations would come into force when the UK leaves the EU.
An amended version of the Regulations was published on 2 October 2018 here.