Several changes to the Consumer Credit Act have been announced. These include the Consumer Credit (Advertisement) Regulations 2004, which replaces three previous regulations dealing with credit advertising. The rules also introduce a new way of calculating the annual percentage rate.
The new rules come into force on 31 October 2004.
Louise Wallis, the RMI's business development specialist, says: “The new rules are broadly good news for both businesses and consumers, as they protect both. Dealers will find it easier to conform to this single set of rules on advertising, as opposed to the three co-existing regulations they had to cope with previously. At the same time consumers will benefit from a greater clarity in information provided through advertising.”
Dealers may need to make some changes to their advertising Wallis explains: “Dealers must ensure that any advertising that features credit information adheres to the new rules once they come into force.”
Dealers that want more information on the new rules should contact their finance house, or their manufacturer. RMI members should contact the RMI Helpline.