The Consumer Credit (Disclosure of Information) Regulations 2010
| Year | 2010 |
2010 No. 1013
Consumer Credit
The Consumer Credit (Disclosure of Information) Regulations 2010
Made 28th March 2010
Laid before Parliament 30th March 2010
Coming into force 30th April 2010
The Secretary of State is a Minister designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to measures relating to consumer credit.
The Secretary of State makes regulations 4(2), 4(4), 5(2), 7, 10(4)(a) and (b), 10(5), 10(7), 10(9) and 12(2)(c) in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and all other provisions in these Regulations in exercise of the powers conferred by sections 55(1), 182(2) and 189(1) of the Consumer Credit Act 19743.
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Consumer Credit (Disclosure of Information) Regulations 2010 and shall come into force on 30th April 2010.
(2) In these Regulations—
“the Act” means the Consumer Credit Act 1974;
“advance payment” includes any deposit and in relation to a regulated consumer credit agreement includes also any part-exchange allowance in respect of any goods agreed in antecedent negotiations not to be taken by the creditor in part exchange but does not include a repayment of credit or any insurance premium or any amount entering into the total charge for credit;
“ancillary service” means a service that relates to the provision of credit under the agreement and includes in particular an insurance or payment protection policy;
“the APR” means the annual percentage rate of charge for credit determined in accordance with Schedule 2 to these Regulations and the Total Charge for Credit Regulations;
“cash price” in relation to any goods, services, land or other things means the price or charge at which the goods, services, land or other things may be purchased by, or supplied to, the debtor for cash account being taken of any discount generally available from the dealer or supplier in question;
“credit intermediary” has the same meaning as in section 160A of the Act;
“distance contract” means any regulated agreement made under an organised distance sales or service-provision scheme run by or on behalf of the creditor who, in any such case, for the purpose of that agreement makes exclusive use of one or more means of distance communication up to and including the time at which the agreement is made. For this purpose, “means of distance communication” means any means which, without the simultaneous physical presence of the creditor or a person acting on behalf of the creditor and of the debtor, may be used for the making of a regulated agreement between the parties to that agreement;
“excluded pawn agreement” means a pawn agreement—
(a) where the debtor is not a new customer of the creditor (see paragraph (5)), and
(b) where, before the agreement is made, the creditor has not received a request from the debtor for the pre-contract credit information (see regulation 9);
“linked credit agreement” means a regulated consumer credit agreement which—
(a) serves exclusively to finance an agreement for the supply of specific goods or the provision of a specific service or land, and
b
(i) where the supplier or service provider himself finances the credit for the debtor, or if it is financed by a third party, where the creditor uses the services of the supplier or service provider in connection with the preparation or making of the credit agreement, or
(ii) where the specific goods or land or the provision of a specific service are explicitly specified in the credit agreement;
“pawn agreement” means a consumer credit agreement under which the creditor takes an article in pawn;
“pre-contract credit information” means the information specified in regulation 3(4);
“total amount of credit” means the credit limit or the total sums made available under a consumer credit agreement;
“total amount payable” means the sum of the total charge for credit and the total amount of credit payable under the agreement as well as any advance payment;
“total charge for credit” means the total charge for credit determined in accordance with the Total Charge for Credit Regulations and the Schedule to these Regulations;
“the Total Charge for Credit Regulations” means the Consumer Credit (Total Charge for Credit) Regulations 20104.
(3) In these Regulations, a reference to a repayment is a reference to—
(a)
(a) a repayment of the whole or any part of the credit,
(b)
(b) a payment of the whole or any part of the total charge for credit, or
(c)
(c) a combination of such repayments and payments.
(4) In these Regulations, a reference to rate of interest is a reference to the interest rate expressed as a fixed or variable percentage applied on an annual basis to the amount of credit drawn down.
(5) In these Regulations, a reference to an agreement includes a reference to a prospective agreement.
(6) For the purposes of the definition of “excluded pawn agreement” and regulation 8 the debtor is a new customer if the debtor has not entered into a pawn agreement with the creditor in the three years preceding the start of the negotiations antecedent to the agreement.
(7) In relation to a regulated consumer credit agreement secured on land and to which these Regulations do not apply, the definition of Total Charge for Credit Regulations shall apply as if for the words “Consumer Credit (Total Charge for Credit) Regulations 2010” there were substituted “Consumer Credit (Total Charge for Credit) Regulations 1980”5.
Agreements to which these Regulations apply
2.—(1) These Regulations apply in respect of a regulated consumer credit agreement, except as provided for in paragraphs (2) to (4).
(2) These regulations do not apply to an agreement to which section 58 of the Act (opportunity for withdrawal from prospective land mortgage) applies.
(3) These Regulations do not apply to an authorised non-business overdraft agreement which is—
(a)
(a) for credit which exceeds £60,260, or
(b)
(b) secured on land.
(4) Except as provided for in paragraph (5) these Regulations do not apply to an agreement—
(a)
(a) under which the creditor provides the debtor with credit exceeding £60,260,
(b)
(b) secured on land,
(c)
(c) entered into by the debtor wholly or predominantly for the purposes of a business also carried on, or intended to be carried on, by him, or
(d)
(d) made before 1st February 2011.
(5) These Regulations apply to an agreement mentioned in paragraph (4) (which is not also an agreement mentioned in paragraph (2) or (3)) where a creditor or, where applicable a credit intermediary, discloses or purports to disclose the pre-contract credit information in accordance with these Regulations rather than in accordance with the Consumer Credit (Disclosure of Information) Regulations 20046or the Financial Services (Distance Marketing) Regulations 20047(as the case may be).
(6) Subsections (2) to (5) of section 16B of the Act (declaration by the debtor as to the purposes of the agreement) apply for the purposes of paragraph (3)(c).
Information to be disclosed: agreements other than telephone contracts, non-telephone distance contracts, excluded pawn agreements and overdraft agreements
3.—(1) This regulation applies to an agreement other than—
(a)
(a) an agreement made by way of a voice telephone communication (whether or not it is a distance contract) (see regulation 4);
(b)
(b) an agreement made using a means of distance communication other than a voice telephone communication, which does not enable the provision of the pre-contract credit information before the agreement is made (see regulation 5);
(c)
(c) an excluded pawn agreement;
(d)
(d) an authorised non-business overdraft agreement (see regulations 10 and 11).
(2) In good time before the agreement is made, the creditor must disclose to the debtor, in the manner set out in regulation 8, the pre-contract credit information.
(3) Paragraph (2) does not require a creditor to disclose the pre-contract credit information where it has already been disclosed to the debtor by a credit intermediary in a manner which complies with paragraph (2).
(4) For the purposes of these Regulations, the pre-contract credit information comprises—
(a)
(a) the type of credit,
(b)
(b) the identity and geographical address of the creditor and, where applicable, of the credit intermediary,
(c)
(c) the total amount of credit to be provided under the agreement and the conditions governing the draw down of credit. In the case of an agreement for running-account credit, the total amount of credit may be expressed as a statement indicating the manner in which the credit limit will be determined where it is not practicable to express the limit as a sum of money,
(d)
(d) the duration or minimum duration of the agreement or a statement that the agreement has no fixed or minimum duration,
(e)
(e) in the case of—
(i) credit in the form of deferred payment for specific goods, services or land, or
(ii) a linked credit agreement,
a description of the goods, services or land and the cash price of each and the total cash price,
(f)
(f) the rate of interest charged, any conditions applicable to that rate, where available, any reference rate on which that rate is based and any information on any changes to the rate of interest (including the periods that the rate applies, and any conditions or procedure applicable to changing the rate),
(g)
(g) where different rates of interest are charged in...
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