CCD misses the
target

Photo of Graham Hill, director, GHA FinanceConsumers and small
businesses. The two groups that the new EU Consumer Credit
Directive was aimed at – and seems totally to have
ignored.

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The groups which should, after 1
February, be able to talk to a dealer, broker or lender and arrange
their vehicle finance without fear of being ripped off.

But how well are their interests
being looked after? Let’s look at the new APR calculation: designed
for ‘consumer protection’, but possibly the most meaningless
calculation ever devised.

Try reading the regulations
regarding variation of interest rates.

It would make a lawyer want to
give up the will to live, so what chance does a consumer, a third
of whom don’t know what the term APR means, have of understanding
it?

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At least there will be some
consistency in underwriting so that consumers know the lenders will
all be batting off the same wicket – wrong!

In the words of Wragge & Co:
“The new regulations do not specify what checks should be made, and
lenders are left to determine the appropriate methods in each set
of circumstances.”

From the discussions and debates
I have heard, it is clear the situation is a shambolic mess. Some
are even suggesting that the rules are only going to be clarified
when cases start to go to court.

But where has the Government
been throughout the discussions on legislation? Banging out new
legislation right up to the last minute to bring our existing
system into line with the new EU rules, as though they had only
just heard of them.

Graham Hill, director, GHA
Finance