Legal & Finance: Credit Deals Look Set Fair for Improvement

The Birmingham Post (England), October 15, 2004 | Go to article overview
Save to active project

Legal & Finance: Credit Deals Look Set Fair for Improvement


Byline: John Duckers

A sweeping overhaul of the credit sector is expected to increase transparency and create a fairer framework for lenders and consumers, according to expert Joanne Davis.

The reforms in the Consumer Credit Regulations 2004 aim to deliver a balance of choice and protection for consumers, and to create fair competition between lenders.

Household debt broke through the pounds 1 trillion barrier earlier this year, and concerns are never far from the headlines.

Ms Davis, specialist consumer credit and asset finance lawyer at BPE, said: 'The Government recognises, however, that credit gives consumers greater control and flexibility over their finances, and is an important tool that drives economic activity.'

New rules on advertising come into force on October 31. Changes in relation to disclosure of information, agreements, and early settlement will take effect from May 31 next year, with more due to follow as Parliamentary time becomes available.

Ms Davis said: 'Essentially, the new regulations will oblige lenders to amend their advertisements, their contracts, and their systems for calculating rebates.

'The new regulations should also help consumers to be more confident about choosing credit products online, and make internet shopping quicker and easier. As with all legislation, however, the devil is in the detail and there are some crucial differences between what was previously proposed and what has been enacted.'

A critical objective of the new legislation has been to make advertising clear and intelligible.

'It all starts with the advertising,' said Ms Davis. 'If the advertisements are not compliant, then there are severe consequences for the lenders. Advertisements must allow consumers to answer three key questions. How much will it cost me? How much will it cost me if it goes wrong? And can I afford it?

'Lenders will have to provide standard information - particularly important for annual percentage rates as they are now required to show a typical APR - when advertising financial products so consumers can compare like-for-like and find the best deal.

'Potentially misleading expressions also come under scrutiny.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Legal & Finance: Credit Deals Look Set Fair for Improvement
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?