FCA rules will replace various information disclosure requirements under Consumer Credit Act ("CCA") regulations relating to the three phases of consumer credit: pre-contract (e.g. Pre-Contract Credit Information, Agreement, etc.), post-contract (e.g. statements, copies, etc.) and collections (e.g. arrears and default notices, etc.). Security and guarantees (surety) will also be addressed in FCA rules.
Restrictions on enforcing defective agreements without a court order and other sanctions will be replaced by the FCA compliance/enforcement regime, but criminal offences will be retained.
Other CCA requirements will also be replaced by FCA rules as follows (subject to FCA consultation):
- Withdrawal rights (some parts retained);
- Cancellation rights (some parts retained);
- Early settlement and rebate rights;
- Termination of agreements (including voluntary termination) (some parts retained);
- Securities and sureties (some parts will be retained);
- Credit-token agreements, acceptance and liability for misuse of credit tokens;
- Agreement to enter future agreement void;
- Liability for misuse of credit facilities;
- Interest not to be increased on default; and
- Statements by creditor or owner to be binding.
The following CCA concepts/provisions would be retained (with necessary amendments):
- Consumer credit agreements, meaning of credit, running account credit, fixed sum credit, restricted used and unrestricted use credit, debtor-creditor-supplier agreements, and debtor-credit agreements;
- Consumer hire agreements;
- Linked transactions;
- Cancellation: recovery of money paid by debtor or hirer, return of goods and goods given in part exchange;
- Withdrawal from prospective agreement
- Death of debtor or hirer;
- Protected goods, recovery of possession of goods or land, summary diligence not competent in Scotland;
- Ineffective securities;
- Pawnbroking;
- Negotiable instruments;
- Land mortgages; and
- Provisions under Judicial Control (including Time Orders, interest, etc.),
- Ancillary Credit Businesses (including credit reference agencies),
- Enforcement of Act and
- Supplemental (including interpretation, definitions, etc.)
