On the 1st February, 2011, there are a new regulations for all the lenders to tell the consumers exactly how much each product costs. This will include the whole of the Europe Union. It is called Consumer Credit Directive, CCD for short.

The main difference is the current system is not very clear to some consumers. This is why they have introduced CCD. This new law will give the consumer the calculation of the total charge for credit.  All of the lenders have to provide explanations about the credit on offer to the consumer, right to make early payments on credit borrowed, tell customers when debts are sold on, check creditworthiness before offering or increasing credit and more.

Both of the borrower and the lender must sign the copy of the agreement, the consumer can cancel the contract within 14 days without any reason. Also, all the credit agreement must be sign on trade premises otherwise it will be cancellable.

The most important of all these new rules is all the lenders now have to display an annual percentage rate or an interest rate. It is called a representative rate. It means that 51% of your customers have to get that particular rate.

For example: 51% of the customers have to get 6.9% first before the lender can advertise that rate.

It will include all the products like credit card, hire purchase, car loans, mortgages, anything that to do with credits or loans. This CCD can help many old customers that have issue before and understand their lender a little bit more.