These Regulations implement Directive 2011/90/EU amending Part II of Annex I to Directive 2008/48/EC of the European Parliament and of the Council providing additional assumptions for the calculation of the annual percentage rate of charge (“the 2011 Directive”) (OJ No L296, 15.11.2011, p35). They amend certain provisions of the Consumer Credit (Total Charge for Credit) Regulations 2010 (S.I. 2010/1011) (“the 2010 Regulations”) which set out assumptions for the purposes of calculating the total charge for credit and the annual percentage rate of charge.

Regulation 3 inserts a definition of “open-end consumer credit agreement” into the 2010 Regulations that expands for the purposes of these Regulations the definition in section 189 of the Consumer Credit Act 1974.

Regulation 4 implements the changes made by the 2011 Directive to the assumptions for calculating the total charge for credit and the annual percentage rate of charge (APR). It does so by substituting regulation 6 of the 2010 Regulations.

Regulation 5 makes an amendment to paragraph 3(g) of the Schedule to the 2010 Regulations so as to correct a typographical error in the original transposition.

Regulation 6 makes transitional provision disapplying the requirements to advertisements published in a catalogue before 1st February and giving advertisers a period of one month from 1st January 2013 in which to replace other types of credit advertisement published prior to that date.

Regulation 7 requires the Secretary of State to review the operation and effect of these Regulations and lay a report before Parliament no later than five years after they come into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Regulations should remain as they are, or be revoked or be amended. A further instrument would be needed to revoke the Regulations or to amend them.

A transposition note and an impact assessment of the effect this instrument will have on the costs to business and the voluntary sector are available from the BIS website (www.bis.gov.uk). They are also annexed to the Explanatory memorandum which is available alongside the instrument on the Legislation website (http://www.legislation.gov.uk/). Copies have also been placed in the Libraries of both Houses of Parliament.