Website of the UK government

New consumer credit rules

Under the new rules customers have:

• up to 14 days to cancel new loan agreements (excluding loans over £60,260, loans secured on land or loans to purchase land)
• the option to make partial early repayments on loans - at the moment borrowers are only able to pay the full amount off early

Lenders will now have greater responsibility towards consumers and must:

• give borrowers standardised pre-contractual information to help them compare different loans
• ensure borrowers understand the detail of their particular loan
• carry out a thorough check on borrowers’ creditworthiness before any loan is agreed

Consumer Minister Edward Davey said: "The implementation of the Consumer Credit Directive will help strengthen a culture of responsible lending. With new legal rights for consumers and greater responsibility for lenders, consumers will be better able to take charge of their money.

"Consumers should be able to help themselves, provided they have the right help and information to do so."

More on Directgov

• Buying on credit: options, pros and cons (money, tax and benefits section)

• Different ways of borrowing money (money, tax and benefits section)

• Financial problems and complaints (money, tax and benefits section)

• Options if you've been refused a loan or credit (money, tax and benefits section)