Default Notices for Consumer Credit Agreements: Have you made the changes?
07 May 2021
Firms are reminded that the required amendments to default notices must be made by 2 June 2021.
The Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020 (“Amending Regulations”) came into force on 2 December 2020 and the 6-month transitional period firms were granted to apply these changes is now coming to an end.
As discussed in our previous article, research found that default notices containing capitalised text and legal terms can often cause distress and be difficult for consumers to understand. The Amending Regulations intended to make notices clear but less intimidating.
Changes to default notices include banning the use of block capitals, removing technical legal language, altering the wording and ordering of notices, and updating the sources of support.
Firms must update their default notices by 2 June 2021.
If you require help reviewing and updating your templates or any further advice, please contact us.
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