Obligation for the lender to verify a consumer`s creditworthiness before offering or increasing credit (Article 8 CCD) There is no requirement for lenders to conduct audits with credit reference agencies, although in many cases this will be an appropriate part of the credit assessment, as noted above. However, if a consumer`s request is rejected on the basis of a database search, lenders must inform them immediately and free of charge of search results and provide information on the database consulted. The Consumer Credit (Agreements) Regulations 2010 (SI 2010/1014) contains information that must be provided to a consumer in a credit contract and that is slightly different from that before February 1, 2011. In particular, all information must be presented in a “clear and concise” manner. However, lenders may continue to rely on applicable rules before February 1, 2011, when agreements are outside CCD`s scope, as explained below. There are minor changes in the way interest rate changes are to be communicated to consumers, which apply to all regulated agreements and not just to CCD agreements. Changes in variable interest rates that are not linked to a benchmark rate must be communicated to the consumer in advance. In addition, changes to reference rates should no longer be communicated to consumers solely because of changes announced in branches or newspapers. Instead, the new regulations must inform the consumer personally, regularly and permanently. Consumer information requirements on the sale of debt (Article 17 CCD) Until now, there was no specific obligation to verify credit, although there were and remains provisions on irresponsible lending. The new regulations do not specify the controls to be carried out and leave it to lenders to determine the appropriate methods in all cases. Information can be found on the Fair Trade Office`s website in its response entitled “Lending irresponsible – OFT Guidance for Creditors,” March 2010 (updated in February 2011). Prior to the implementation of CCD, British law held that, when a credit contract was transferred from one lender to another, it was under no circumstances required to inform the consumer of the transfer.
However, all consumers must now be informed of any transfer of their loan (for example. B in the event of a portfolio transfer) when the existing lender no longer intends to repay the loan. After important negotiations, the new CMO was adopted at European level in April 2008 and published in the Official Journal of the European Union on 22 May 2008.