Dealers do not face a major challenge when the EU’s Consumer Credit Directive (CCD) comes into force on February 1, says Mark Standish, UK chief executive of Carlyle Finance.
CCD will change the way credit is provided in all areas of consumer credit so as to give further protection to consumers and harmonise credit legislation throughout the EU.
Standish said: “Every dealer has to embrace the changes and ensure all necessary steps are taken. The changes are not overtly onerous for retailers and the bulk of the work required will impact lenders.”
CCD will change the way credit is marketed and underwritten. Standish believes guidance from finance pro-viders and Finance & Leasing Association’s new SAF CCD module, will ensure most retailers will find compliance relatively straightforward. Carlyle is launching a web-based support tool.
Standish said dealers should be aware of key changes, including the pre-contract information sheet handed to customers. From February this will be replaced by the SECCI (standard European consumer credit information sheet). Before the credit agreement is signed, customers must read and understand it – and take the sheet away if necessary – before signing the agreement document.
Other clauses cover what dealers should say before customers sign credit agreements, the shorter right-to-withdraw period for ‘pre-executed’ agreements and standardised wording in advertisements.
Chris Sutton, Black Horse managing director, said: “Black Horse is helping dealers to embed CCD within their sales process. Over the last few months we’ve trained all of our sales teams and they are now, in turn, rolling out that training to dealers.”