Reminder: enhanced information for consumers under consumer credit and hire agreements

Relevant to
Those businesses in the UK that lend money to consumers or offer goods or services on credit or hire out goods

Took effect on
1 October 2008

From 1 October 2008, you are required to give borrowers or hirers more information during the lifetime of a regulated consumer credit agreement or consumer hire agreement.

The new requirements include:

• annual statements under fixed-sum credit agreements 
• additional information in statements for running-account credit
• notices of sums in arrears
• notices of default sums
• additional information in default notices
• notices of post-judgment interest

The information you must provide and the prescribed wording you must use in each type of statement and notice is set out in the 2007 Regulations (as amended).

The new requirements are in addition to those under previous rules, which continue to apply. This means that you must continue to provide information upon request and also issue:

• periodic statements for running-account credit
• notices of variation of agreements
• default notices in respect of breach of the agreement
• enforcement and termination notices

You must include a copy of the current Office of Fair Trading (OFT) information sheet with each arrears or default notice. If you send arrears notices electronically, you must attach the relevant OFT information sheet to the email. If you translate the information sheet and send it in any language other than English or Welsh, you must also include a copy in English.

New licensing requirements will also apply to businesses offering debt administration or credit information services. See our regulation update on new consumer credit licensing requirements.

• Download guidance on post-contract information requirements from the OFT website (PDF) - Opens in a new window
• Browse the index of prescribed information sheets on the OFT website - Opens in a new window
• Find the rules on the form and content of statements and notices in the regulations on the Office of Public Sector Information website - Opens in a new window

Full title of regulation
Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 [SI 2007 1167] as amended by the Consumer Credit (Information Requirements and Duration of Licences and Charges) (Amendment) Regulations 2008 [SI 2008 1751]

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