Category: Brexit

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FCA publishes website reminding consumer credit firms of Brexit changes

On 13 April 2021, the UK Financial Conduct Authority published a webpage reminding consumer credit firms that:

– Brexit changes to pre-contractual information (a final ‘au revoir’ to the SECCI and ECCI!); and

– information for firms subject to CONC 2.7.2R(4)(a),

must be implemented by 31 May 2021.

The end of the transitional provisions mean the post-Brexit disclosures must be used from 1 June 2021.

If pre-contractual information (formerly the SECCI or ECCI) disclosed under Section 55(1) of the Consumer Credit Act 1974 is non-compliant then the agreement is unenforceable without the Court’s permission (see Sections 55(2) and Section 127(1)(za) of the Consumer Credit Act 1974).

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UK Finance publishes Brexit FAQ for customers who have unsecured loans, credit cards or current accounts

On 31 December 2020, UK Finance published an FAQ on Brexit for customers who have unsecured loans, credit cards or current accounts. You can view the press release by clicking here.

The FAQ provides a number of answers to common Brexit questions raised by customers. These include:

– if Brexit will impact a customer’s ability to open a current account or get credit under an unsecured loan or a credit card;

– if money in a savings or current account will continue to be protected by the Financial Services Compensation Scheme;

– if customers can still use their debit or credit cards in the EU; and

– if payments could still fall under the chargeback rules or (if applicable) Section 75 of the Consumer Credit Act 1974.

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Draft legislation to introduce five month transitional period for Brexit changes to the SECCI

In the last few days, HM Treasury published a new draft statutory instrument: the Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 3) Regulations 2019.

If it becomes law (which seems likely), Regulation 14 will delay the changes to the SECCI caused by Brexit (and set out in the  Consumer Credit (Amendment) (EU Exit) Regulations 2018) so that there is a five month transitional period after ‘exit day’.

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European Payments Council publishes a press release about the impact of a “no-deal” Brexit on payments from customers based in the EU

On 2 September 2019, the European Payments Council published a press release on the operational impacts of a “no deal” Brexit on credit transfers and direct debits from the Single Euro Payments Area.

The European Payments Council sets out steps which should be taken to prepare for a “no deal” Brexit. Firms should consider these steps as a matter of urgency.

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Treasury makes the Law Applicable to Contractual Obligations and Non-Contractual Obligations (Amendment etc.) (EU Exit) Regulations 2019

On 29 March 2019, the Treasury made the Law Applicable to Contractual Obligations and Non-Contractual Obligations (Amendment etc.) (EU Exit) Regulations 2019. 

From ‘exit day’, these Regulations will effectively mean the rules in Rome I, Rome II and the Rome Convention will continue to apply as domestic law in all parts of the UK to decide the applicable law for contractual and non-contractual obligations.