Rules in consumer credit protection 2004

In 2004 a reform of the Consumer Credit (Early Settlement) Regulations was proposed aiming increase efficiency in the credit market by reducing barriers to competition, creating a fair market between lenders and borrowers and ensuring that costs and penalties of loans are clearly disclosed. After the proposed changes were implemented in June 2004, consumers were able to settle their loans early without facing unfair charges that came as a surprise. The prescription of a formula for the APR, which is not clearly developed yet, will create a fairer market that will benefit lenders as well, as it will empower consumers to switch to competitive lenders with confidence.
Many other modifications that benefit consumers have also been proposed but not yet implemented. It is expected that this year the government will include a Bill dealing with part of these reforms. As you can see, the rules concerning credit agreements are ever changing. Please read our web site for the latest related information and be aware of the changes when making credit decisions.