Government implements new rules ‘to help debtors’
The government has laid down new rules in parliament to protect borrowers from falling into debt.
These guidelines will come into effect from Febru…
The government has laid down new rules in parliament to protect borrowers from falling into debt.
These guidelines will come into effect from February 1st 2011 and implement the European Consumer Credit Directive.
Consumers will have a 14-day window to cancel credit agreements without fear of penalty under the directive and they will have a right to make partial early repayment.
A standardised information form – which lays out relevant information regarding a credit agreement – will be presented before any signing takes place.
Consumer minister Kevin Brennan said: “These new rules will further strengthen a culture of responsible lending and borrowing whilst helping put consumers back in the driving seat with their finances.”
He added that the balance of power needs to “shift back” to the public.
Vince Cable, the Liberal Democrat shadow chancellor, recently announced that debt fears are still prevalent in the nation because concerns of an unstable economy remain.
By Joe Shervin
