Changes for consumer credit firms post-Brexit

These changes relate to new (post-Brexit) pre-contract consumer credit information forms[1].

If the Disclosure Regulations are not complied with, the credit agreement is only enforceable against the debtor on an order of the court under the Consumer Credit Act 1974.

Firms subject to Regulation 8 of the Disclosure Regulations

Until 31 May 2021, the Treasury’s transitional provisions mean that firms engaged in entering into consumer credit regulated distance contracts, to which regulations 3, 4 and 5 of the Disclosure Regulations 2010 apply, are able to comply with the requirements in regulation 8(1) of the Disclosure Regulations to provide certain pre-contract information using the form set out in schedule 1 to the Disclosure Regulations 2010, by using either:

• the previous Standard European Consumer Credit Information form with a reference in table 5 to ‘the creditor's representative in your Member State of residence’, or
• the new (post Brexit) ‘Pre-Contract Credit Information’ form with the reference to ‘the creditor's representative in your Member State of residence’ amended to read ‘the creditor's representative in United Kingdom’

However, from 1 June 2021 firms must only use the new (post-Brexit) Pre-Contract Credit Information form[1].

Firms subject to Regulations 10 and 11 of the Disclosure Regulations

The Treasury’s transitional provisions also mean that, until 31 May 2021, firms engaged in regulated authorised non business overdraft agreements are able to comply with the requirements in regulations 10(2) and 11(1) of the Disclosure Regulations 2010 to disclose precontractual information by using the form set out in schedule 3 to the Disclosure Regulations, by using either:

• the previous European Consumer Credit Information form (with references to the UK being in the EU), or
• the new (post Brexit) Pre-contract Consumer Credit Information (Overdrafts) form

From 1 June 2021, firms must only use the new Pre-contract Consumer Credit Information (Overdrafts) form[2].

Firms subject to CONC 2.7.2R(4)(a) in our Handbook

Our standstill direction and the Treasury’s transitional provisions mean that until 31 May 2021, firms entering into regulated authorised non business overdraft agreements are able to comply with CONC 2.7.2R(4)(a) – which disapplies the requirement to provide certain distance marketing information where pre-contract information has already been disclosed by the firm under regulations 10(2) and 11 of the Disclosure Regulations 2010, by using either:

• the previous European Consumer Credit Information form (with references to the UK being in the EU), or
• the new (post Brexit) Pre-contract Consumer Credit Information (Overdrafts) form

From 1 June 2021, firms must only use the new Pre-contract Consumer Credit Information (Overdrafts) form[3].