Consumer Credit Directive (CCD)

Question 1

What are the redress rules under the Consumer Credit Directive

Answer 1

Borrower can seek redress from creditor in certain circumstances if unable to obtain satisfaction from supplier of goods and services.
This applies where the Consumer Credit Act would not provide redress and where value of goods or services is more than £30,000 and credit does mot exceed £60,260

Question 2

Borrowers right to terminate agreement

Answer 2

Borrowers can terminate an open-ended agreement at any time subject to one month notice.

Creditor must give 2 month notice to terminate credit and must give justified reasons for termination

Question 3

What is the cap for high-cost, short term credit interest and fees?

Answer 3

The FCA cap on high-cost, short term credit (payday loan) is that interest and fees charged:
- must not exceed 0.8% per day of the amount borrowed.
- default fees cannot exceed £15
- borrowers must never be required to repay more than 100% of amount borrowed in fees and charges