However, CCD did not consider that technological disruptions and new digital means had brought a multitude of innovative distribution channels and, consequently, new means of communication, new avenues of access to credit and uniformity of credit contracts. But another aspect is what the industry as a whole will do if the fears come to fruition and if the internal implementation of the systems, etc., cannot be completed in time for entry into force in June 2010? There are really only two options: a) lenders stop encouraging credit until they can meet the requirements, or (b) lenders continue to advance loans but do not meet legal requirements. Whether or not the latter is an option naturally depends on what sanctions are for non-compliance. This is currently an important, unanswered subject that is eagerly awaited. If the sanctions do not involve the inapplicability of the resulting agreements, nor a criminal offence, or a doubt as to eligibility for possession of a licence, the latter response may be possible. Without this comfort, there may be a great interruption in the availability of credit in solvency. This is still under review. In accordance with Article 16, paragraph 1, a full or partial repayment may be made at any time and, if this is the case, the debtor is entitled to a reduction in the total cost of the credit, „such a reduction, which consists of interest and fees for the remaining term of the contract.“ Article 16.2 stipulates that the creditor is entitled to fair compensation for his prepayment costs, but that this compensation may not exceed 1% of the amount prepayed or, if the amount is repaid in advance less than a year before the end of the agreement. There is also a provision to exceptionally require higher compensation for the creditor if he can prove a larger loss. Similarly, as noted above, the concept of multiple agreement does not arise within the CCD framework and, therefore, the CCA`s requirements to document separately different parts of the agreement cannot apply when CCD applies.
One of the possibilities for action in this regard stems from the impact analysis that BERR must carry out as part of the implementation process. BERR wants an industry contribution. It will be important to create numbers that will show how much it will cost. This is the third in a series of updates we are producing on the process of implementing the UK Consumer Credit Directive. To understand the image until today, you can click on the following previous comments, the first of which is a general overview, while the second focuses on a few specific problem areas: with the exception of leases that are not regulated at all by CCD, there will be different credit schemes that will apply to:- Amendment agreements are an area of breathtaking complexity within the CCA framework. to the extent that it is impossible, in practice, to amend the agreements and almost no one does.