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• COVID-19: Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020

COVID-19: Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020

On 11 November 2020, the Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020 (SI 2020/1248) were published, together with an explanatory memorandum. The Regulations amend the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 (SI 1983/1561) (1983 Regulations) which prescribe the form of the notices which have to be given under sections 76, 87 and 98 of the Consumer Credit Act 1974 by a creditor or owner before taking certain action to enforce or terminate a regulated agreement.

This legislation forms part of the government's effort to help to people struggling with their finances and their mental health. The amendments aim to reduce any adverse impacts of the notices. Among other things, the Regulations amend SI 1983/1561 by:

• banning the use of block capitals to aid prominence;
• removing technical legal language and, where this is not possible, to provide simple explanations; and
• altering the wording and ordering of notices to improve consumers' understanding of them.

The Regulations enter into force on 2 December 2020. They provide for a six-month transitional period.

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Authored by Yvonne Clapham