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Consumer credit firms: changes to SECCI imminent

05/05/2021

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Related topics: Banking and financeConsumer creditFCA

Which firms are affected?

Firms subject to regulations 8, 10 and 11 of the Consumer Credit (Disclosure of Information) Regulations 2010 (SI 2010/2013) (Disclosure Regulations) and the relevant rules in the FCA Handbook.

What changes have been made?

Firms subject to regulation 8 of the Disclosure Regulations to provide certain pre-contract information using the form set out in schedule 1 must use only the new Pre-contract Credit Information form.

Firms subject to regulations 10 and 11 of the Disclosure Regulations to disclose pre-contract information by using the form set out in schedule 3 should use the new Pre-contract Consumer Credit Information (Overdrafts) form.

Firms complying with CONC 2.7.2R(4)(a) of the FCA Handbook, which disapplies the requirement to provide certain distance marketing information where pre-contract information has already been disclosed by the firm, must also only use the new Pre-contract Consumer Credit Information (Overdrafts) form.

The updated forms amend references from “representative in your member state of residence” to “representative in United Kingdom” and remove references to “Standard European Consumer Credit Information”, amongst others.

Next steps

Changes must be made from 1 June 2021 otherwise the credit agreement may only be enforceable against the debtor on an order of the court under the Consumer Credit Act 1974.

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