BERR launches consultation on European Consumer Credit Directive

The Government today launched a consultation on the European Consumer Credit Directive.

The Directive aims to protect consumers, offer them new rights and set out common standards across the EU in relation to a range of unsecured credit products.

The provisions to be consulted on include:

* A 14-day right for consumers to cancel any credit agreement without penalty.
* A standardised information form setting out important information for consumers before they sign a credit agreement.
* Lenders will have to explain their products to help consumers make the right choices.
* Lenders will have a responsibility to check consumer's creditworthiness.
* A consumer right to make partial early repayment (this is in addition to the existing right to repay early in full).

Consumer Minister, Gareth Thomas, said: "We want to further promote responsible lending and responsible borrowing. These measures will help with that objective.

"It's important we hear the views of consumer groups and the credit industry to ensure that we improve consumer protection whilst taking into account the practical concerns of business."

The consultation will close on 10 June 2009. To contribute, visit: http://www.berr.gov.uk