CONSUMER CREDIT DIRECTIVE - IMMEIDATE ACTION REQUIRED
Legislation implementing the provisions of the European Consumer Credit Directive (CCD) came into force on the 1st February 2011.
This will have an impact on those who provide vehicle hire on credit and rely on exemption of the Consumer Credit Act 1974 (CCA).
Hire Companies generally amend their terms and conditions following the decision in Dimond v Lovell (2000) 2 ER 897. Briefly this case saw the introduction of terms stating that charges had to be repaid in no more than four payments and within twelve months.
The changes effective from the 1st February 2011 now specifically say that the credit must be without interest. We suggest that this is incorporated within the terms and conditions.
This also has a potential impact on cases falling out of the ABI GTA where interest is shown if payment is not made within thirty days.
