The Consumer Credit (Disclosure of Information) Regulations 2010

Information to be disclosed: agreements other than telephone contracts, non-telephone distance contracts, excluded pawn agreements and overdraft agreements U.K.

3.—(1) This regulation applies to an agreement other than—

[F1 (a) an agreement made by voice telephone communication where it is a distance contract and the debtor consents to the disclosure of the information referred to in regulation 4(2);

(aa) an agreement made by voice telephone communication where it is not a distance contract (see regulation 4(3));]

(b) an agreement made using a means of distance communication other than a voice telephone communication, which does not enable the provision of the pre-contract credit information before the agreement is made (see regulation 5);

(c) an excluded pawn agreement;

(d) an authorised non-business overdraft agreement (see regulations 10 and 11).

(2) In good time before the agreement is made, the creditor must disclose to the debtor, in the manner set out in regulation 8, the pre-contract credit information.

(3) Paragraph (2) does not require a creditor to disclose the pre-contract credit information where it has already been disclosed to the debtor by a credit intermediary in a manner which complies with paragraph (2).

(4) For the purposes of these Regulations, the pre-contract credit information comprises—

(a) the type of credit,

(b) the identity and geographical address of the creditor and, where applicable, of the credit intermediary,

(c) the total amount of credit to be provided under the agreement and the conditions governing the draw down of credit. In the case of an agreement for running-account credit, the total amount of credit may be expressed as a statement indicating the manner in which the credit limit will be determined where it is not practicable to express the limit as a sum of money,

(d) the duration or minimum duration of the agreement or a statement that the agreement has no fixed or minimum duration,

(e) in the case of—

(i) credit in the form of deferred payment for specific goods, services or land, or

(ii) a linked credit agreement,

a description of the goods, services or land and the cash price of each and the total cash price,

(f) the rate of interest charged, any conditions applicable to that rate, where available, any reference rate on which that rate is based and any information on any changes to the rate of interest (including the periods that the rate applies, and any conditions or procedure applicable to changing the rate),

(g) where different rates of interest are charged in different circumstances the creditor must provide the information in paragraph (f) in respect of each rate,

(h) the APR and the total amount payable under the agreement illustrated (if not known) by way of a representative example mentioning all the assumptions used in order to calculate that rate and amount,

(i) the amount (expressed as a sum of money), number (if applicable) and frequency of repayments to be made by the debtor and, where appropriate, the order in which repayments will be allocated to different outstanding balances charged at different rates of interest,

(j) in the case of an agreement for running-account credit, the amount of each repayment is to be expressed as (a) a sum of money; (b) a specified proportion of a specified amount; (c) a combination of (a) or (b); or (d) in a case where the amount of any repayment cannot be expressed in accordance with (a), (b) or (c), a statement indicating the manner in which the amount will be determined,

(k) if applicable, any charges for maintaining an account recording both payment transactions and draw downs, unless the opening of an account is optional, and any charge payable for using a method of payment in respect of payment transactions or draw downs,

(l) any other charges payable deriving from the credit agreement and the conditions under which those charges may be changed,

(m) if applicable, a statement that fees will be payable by the debtor to a notary on conclusion of the credit agreement,

(n) the obligation, if any, to enter into a contract for ancillary services relating to the consumer credit agreement, in particular insurance services, where the conclusion of such a contract is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed,

(o) the rate of interest applicable in the case of late payments and the arrangements for its adjustment, and, where applicable, any charges payable for default,

(p) a warning regarding the consequences of missing payments (for example, the possibility of legal proceedings and the possibility that the debtor's home may be repossessed),

(q) where applicable, any security to be provided by the debtor or on behalf of the debtor,

(r) the existence or absence of a right of withdrawal,

(s) the debtor's right of early repayment under section 94 of the Act, and where applicable, information concerning the creditor's right to compensation and the way in which that compensation will be determined,

(t) the requirement for a creditor to inform a debtor in accordance with section 157(A1) of the Act that a decision not to proceed with a prospective regulated consumer credit agreement has been reached on the basis of information from a credit reference agency and of the particulars of that agency,

(u) the debtor's right to be supplied under section 55C of the Act on request and free of charge, with a copy of the draft agreement except where—

(i) the creditor is at the time of the request unwilling to proceed to the making of the agreement, or

(ii) the agreement is an agreement referred to in regulation 2(4)(a) to (c) or a pawn agreement, F2 ...

(v) if applicable, the period of time during which the creditor is bound by the pre-contract credit information [F3 , and]

[F4 (w) where the agreement references a benchmark, as defined in point 3 of Article 3(1) of Regulation EU 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014, the name of the benchmark and of its administrator and the potential implications on the debtor.]

(5) For the purpose of the representative example referred to in paragraph (4)(h)—

(a) (i) where the debtor has informed the creditor or credit intermediary of one or more components of his preferred credit, such as the duration of the consumer credit agreement or the total amount of credit, and

(ii) where the creditor would in principle agree to offer credit on such terms,

the creditor or credit intermediary must take those components into account when calculating the representative APR and the total amount payable;

(b) where the creditor uses the assumption set out in [F5 the total charge for credit rules] the creditor must indicate that other draw down mechanisms for this type of consumer credit agreement may result in a higher APR;

(c) subject to paragraph (a), in the case of an agreement for running-account credit, where the credit limit is not known at the date on which the pre-contract credit information is disclosed, the total amount of credit is to be assumed to be £1,200 or in a case where credit is to be provided subject to a maximum credit limit of less than £1,200, an amount equal to that maximum limit.

(6) In the case of a consumer credit agreement under which repayments do not give rise to an immediate reduction in the total amount of credit advanced but are used to constitute capital as provided for under the agreement or under an ancillary agreement, the creditor or credit intermediary must provide a clear and concise statement that such agreements do not provide for a guarantee of repayment of the total amount of credit drawn down under the credit agreement unless such a guarantee is given.

Textual Amendments

F1 Reg. 3(1)(a)(aa) substituted for reg. 3(1)(a) (26.8.2010) by The Consumer Credit (Amendment) Regulations 2010 (S.I. 2010/1969), regs. 1, 34

F2 Word in reg. 3(4)(u)(ii) omitted (1.7.2018) by virtue of The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(a), 57(2)(a)

F3 Word in reg. 3(4)(v) substituted (1.7.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(a), 57(2)(b)

F4 Reg. 3(4)(w) inserted (1.7.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(a), 57(2)(c)

F5 Words in reg. 3(5)(b) substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), 26(5)