Consumer Credit Directive Review
The European Union has announced an inception impact assessment into the Consumer Credit Directive. The decision comes after the Commission decided that a review of the Directive is required, and has invited interested parties to make submissions.
The assessment aims to reinforce, streamline and modernise consumer credit rules to ensure they are future-proof, better protect consumers, deliver a level playing field and reduce unnecessary burden for credit providers. Feedback is sought by 1 September 2020.
In the UK, credit hire is exempt from credit rules normally, through ensuring its agreements with customers are compliant, so while the CHO does not intend to make a submission, we will monitor progress to identify whether there is any intended change to the exemptions proposed.
The project comes amidst a wider political debate about the trading relationship between the EU and UK after 2020. Commentators have varied in their assessments of the likelihood of a trade deal emerging in time for the formal departure at the end of the year, and while there has been plenty of rhetoric about the value and importance of equivalence in financial services, it is by no means certain that equivalence will be agreed in the next six months.
However, where Consumer Credit Directive is concerned, the CHO believes it is wise to proceed on the basis that the revised Directive will apply to the UK.
For more information please see the details of the assessment and terms of reference at this link.
Please do bear in mind that CHO does not assume responsibility for any specific member company. Our updates are for information and guidance purposes only. It is the case that each and every member company must always take their own independent advice in respect of the specific circumstances that apply to their company.