Overview of UK implementation of the Consumer Credit Directive
Produced in partnership with Tony Katz and Sam Millar of DLA Piper UK LLP
Overview of UK implementation of the Consumer Credit Directive

The following Financial Services guidance note Produced in partnership with Tony Katz and Sam Millar of DLA Piper UK LLP provides comprehensive and up to date legal information covering:

  • Overview of UK implementation of the Consumer Credit Directive
  • Introduction
  • Scope of the Consumer Credit Directive
  • UK implementation of the Consumer Credit Directive
  • Key changes made by the Consumer Credit Directive
  • FCA regime for consumer credit
  • Consumer credit—latest developments

BREXIT: As of exit day (31 January 2020), the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For the latest developments in relation to consumer credit, see the Consumer credit—timeline.

Introduction

Directive 2008/48/EC on credit agreements for consumers (Consumer Credit Directive) was adopted by the European Parliament on 23 April 2008 and EU Member States were required to transpose it into national law before 12 June 2010.

The key purpose of the Consumer Credit Directive was 'to offer a high degree of consumer protection and thus to boost consumer confidence, enable free movement of credit across borders and remedy distortions of competition arising from differences in national laws regarding consumer credit'.

On 15 November 2011, Directive 2011/90/EU amending Part II of Annex I to the Consumer Credit Directive was published in the Official Journal of the European Union (OJ). Directive 2011/90/EU provides additional assumptions for the calculation of the annual percentage rate of charge (APR). EU Member States were required to bring into force the provisions of Directive 2011/90/EU by 31 December 2012.

The Consumer Credit Directive was transposed into UK law by a number of statutory instruments that amended