Crunch time – the Consumer Credit Directive

Further changes to UK consumer credit law are needed to meet the Consumer Credit Directive (2008/48/EC). All providers of consumer credit services must assess how it will affect their procedures and documentation. Ian Roberts and Matthew Hodgson of Denton Wilde Sapte study the latest changes.

Ian Roberts is a partner and Matthew Hodgson a lawyer in the Denton Wilde Sapte LLP consumer banking and finance team. Contact them at ian.roberts@dentonwildesapte.com or matthew.hodgson@dentonwildesapte.com or by calling +44 (0)20 7246 7056. © 2010 Denton Wilde Sapte LLP.

Why it matters

Any business currently providing credit to consumers needs to consider the impact of the Consumer Credit Directive (CCD). CCD is a maximum harmonisation directive which means that EU member states must implement it in full. UK law cannot provide exemptions that are not within the scope of the directive. CCD is similar to many existing UK requirements but it contains some substantially new provisions. Lenders should consider not only their existing contractual documents but the way they conduct their business as well.