FCA reminds consumer credit firms of post-Brexit changes

On 13 April, the FCA published an update reminding certain consumer credit firms of the upcoming changes to pre-contract consumer credit information forms under the Consumer Credit (Disclosure of Information) Regulations 2010 (SI 2010/1013) (the "Disclosure Regulations") and the relevant rules in the FCA Handbook.

From 1 June 2021:

1. Firms subject to regulation 8 of the Disclosure Regulations must only use the new (post-Brexit) pre-contract credit information form; and
2. Firms subject to regulations 10 and 11 of the Disclosure Regulations and CONC 2.7.2R(4)(a) of the FCA Handbook must only use the new pre-contract consumer credit information (overdrafts) form.

The updates include necessary Brexit-related amendments, such as the substitution of the wording "Member State of residence" to "the United Kingdom" and the deletion of references to the "European Consumer Credit Information” and "Standard European Consumer Credit Information".

If the relevant changes are not made, the credit agreement may only be enforceable against the debtor upon an order of the court under the Consumer Credit Act 1974.

The FCA's supplementary update on the relevant changes can be viewed here.