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The new EU Consumer Credit Directive (CCD)

Continuing changes affect the partnership between the motor industry and point of sale finance. We have seen the scrappage scheme introduced this year and we await the outcome of discussions about the selling of payment protection insurance.

The next major legislative change on the horizon is the EU’s Consumer Credit Directive (CCD) which becomes law in June 2010 and is an effort to harmonise consumer credit trading practices across Europe.

Much of the detail of how these new rules will apply is still under discussion, but it will affect all dealers and will apply to the majority of their customers.

Black Horse is playing a major part in discussions which the Department for Business Innovation and Skills is having with the banking and credit industries and consumer protection bodies.

We are doing all that we can to ensure the new rules will be practical to operate and of use to consumers.

The final regulations will be released in November, but some of the key facts are already known.

There will be a requirement for dealers to provide customers with greater pre-contract information and new forms of credit agreement, as well as clearer guidance about the risk a particular agreement carries and the consequences of failure to pay.

The new rules may require more rigorous credit checks prior to acceptance, so one outcome may be the need for more information on our proposals.

Customers will have a 14-day right of withdrawal from their finance agreement. Any cancellation only relates to the agreement and does not extend to the vehicle purchase.

As the legislation becomes clearer we will let you know about developments and we will develop our online systems eQuips and LetsUConnect to help you manage any changes in procedure, supported by training to showroom staff before June 2010.

As ever, we’re committed to supporting our dealers through these changes and to help to minimise any impact on their business, by providing an informed and helpful interpretation of the new legislation.

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