Treasury has published a draft statutory instrument setting out changes to consumer credit legislation consequent on Brexit. The draft has not yet been laid before the relevant parliamentary committees for “sifting”. Once the Committees are ready, it will be laid appropriately.
Treasury will need to amend the following legislation to address situations where retained EU law will be operate effectively and to deal with other consequences of Brexit:
- the CCA 1974
- the Consumer Credit (Disclosure of Information) Regulations 2010
- the Consumer Credit (Green Deal) Regulations 2012 and
- the Financial Services Act 2012 (Consumer Credit) Order 2013
The changes are designed to make the minimum necessary amendments to the relevant laws while preparing for a “no deal” Brexit. The draft instrument is very short, while the explanatory note is detailed. The explanatory note says there will be “minimal familiarisation costs and limited administration costs” for authorised consumer credit firms. Firms will need to amend the titles of the pre-contractual information forms and amend references in the forms that currently say “Member State” to read “United Kingdom”.