Recent regulatory developments of interest to financial institutions with focus on consumer finance. See also our General regulatory news linked in the related materials
Contents
- Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020: revised draft
- Consumer waiver relating to an unfair term: ECJ guidance
Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020: revised draft
A revised draft version of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 has been published, together with a revised draft explanatory memorandum.
The Regulations establish the first part of a debt respite scheme for individuals in problem debt. They supersede the draft version that was published on 15 July 2020 and have been laid before Parliament under section 7(8)(a) and (b) of the Financial Guidance and Claims Act 2018.
A comparison of the revised draft version with the July 2020 draft version indicates that limited changes have been made to certain provisions of the Regulations and that additional, clarificatory text has been added to the explanatory memorandum.
When made, other than the provisions referred to in regulations 1(3) to (7), the Regulations will come into force on 4 May 2021.
Consumer waiver relating to an unfair term: ECJ guidance
In the recent case of XZ v Ibercaja Banco SA (Case C-452(18) EU:C:2020:536 (9 July 2020)), the Spanish Court requested a preliminary ruling from the European Court of Justice (ECJ) regarding the interpretation of the Council Directive 93/13/EEC on Unfair Terms in Consumer Contracts, which is implemented into English law by the Consumer Rights Act 2015. The case may have implications for waivers in a consumer finance context.
Read more in our separate briefing: European Court of Justice gives guidance on validity of consumer waiver relating to an unfair term.
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