New EU Cooling Off Period Rules
Tuesday, 9. February 2010
On the subject of the new EU Consumer Credit Directive there is a change to the 14 day cooling off period that is given to consumers when they sign the finance agreements off trade premises. Currently you can cancel an agreement if it is regulated under the Consumer Credit Act and signed away from the premises of the funder, the broker or the dealer. However, if you sign on trade premises you don’t have the 14 day cooling off period but the new directive will change this by allowing the 14 day cooling off period even if the documents are signed on premises. This may cause dealers problems who have traditionally been able to sign you up and allow you to drive your car away immediately. But the really strange part to the directive is that whilst you may want to reject the finance within the 14 day cooling off period you are still responsible for the payment of the car. Very strange indeed. There are also title issues. The finance company would have already paid for the car so title would have passed to the funder but if you choose not to proceed with the finance then you must now pay the funder for the car. Confused? Probably but I’ll try to unravel this before it becomes law! Be very careful if you cancel your agreement after you have signed it under the 14 day rule, you may still be responsible for the cost of the car. The new legislation comes into force in June 2010. By Graham Hill
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=8a8072fa-744b-418c-97d4-74ba5c79f22b)
Allan Ramsay Says:
Do you know if this is now law?
Says:
Hi Alan. It is actually law now but the UK Government has allowed the industry a period of grace until next year to get their house in order. In the meantime some lenders have insisted on this cooling off period whilst others still seem quite relaxed about it. Expect it all to change in 2011! Hope that helps Allan. G