Consumer Credit (Disclosure of Information) Regulations 2010
What this means for your business
- Enforced by
- FCA
- Applies to
- United Kingdom
- On this page
- 7 compliance obligations, 1 practical guide
What you must do
7 compliance obligations under this legislation.
Management duties 3
Disclose pre‑contract credit information for business distance contracts
When you (as a creditor or lender) sell credit over the phone, internet or any other distance method to a customer who is using the credit for their business, you must still give them the required pre‑contract credit details. You can satisfy the rule by sending the information straight after the contract is signed, rather than before, if the contract would otherwise fall under regs 3‑5.
Provide required pre‑contract credit information for telephone agreements
If you sell credit over the phone you must give the consumer a set of key details before the deal is sealed – who you are, the main features of the credit, the total price, any other possible charges, and any right to withdraw or cancel. You must also repeat this information immediately after the agreement is made, in the way set out by regulation 8.
Provide required pre‑contract information for overdraft credit
Unlimited fineIf you offer an overdraft to a consumer you must give them a clear statement before the agreement is signed. The statement must contain your contact details, how the overdraft works, the interest rates and any other charges, and key legal points such as how the agreement can be ended. Keep a copy of the information you give each customer.
Notifications 3
Inform pawn customers of their right to pre‑contract credit information
If you offer pawn agreements, you must tell existing customers (not brand‑new ones), before the deal is signed, that they can ask for the pre‑contract credit information (as set out in Schedule 1) free of charge. The information must be offered in good time so the customer can decide before the agreement is finalised.
Provide pre‑contract credit information for non‑telephone distance agreements
If you offer credit to a consumer and the agreement is made using email, website, post or any other remote method that isn’t a voice phone call, you must give the consumer the required pre‑contract credit information right after the contract is concluded. This applies to all such agreements you enter into at the consumer’s request (except authorised non‑business overdrafts).
Provide required credit information to consumers
When you offer a credit product that falls under regulation 10(2) (for example, an overdraft), you must give the consumer the prescribed information. You can do this by using the standard form in Schedule 3 (filled in exactly as the notes require) or by providing the same details in a written document that is equally clear. If regulation 10(8) applies, you may also give the information verbally.
Other requirements 1
Provide full contract terms and accurate obligations in distance credit agreements
If your business offers a credit agreement to a consumer over distance (e.g. online or phone) and the consumer is not using the credit for their own business, you must give them all the contract’s terms and conditions, and make sure any description of what they will have to pay or do matches the actual legal obligations under the contract. This information has to be supplied before the agreement is entered into.
Penalties for non-compliance
1 penalty under this legislation. 1 carry an unlimited fine.
Provide required pre‑contract information for overdraft credit
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
12 classified provisions from this legislation.
Duties 7
- Schedule 3 Pre-contract Consumer Credit Information (Overdrafts) conditions applicable
- s.4 Information to be disclosed: telephone contracts
- s.5 Information to be disclosed: non-telephone distance contracts
- s.6 Information to be disclosed: distance contracts for the purpose of a business
- s.7 Information about contractual terms and conditions: regulations 3, 4 and 5 The creditor
- s.9 Information to be disclosed: pawn agreements
- s.11 — the creditor