CCD Bulletin February 2009 - April 2009 edition
Dear Stakeholder,
Welcome to the Third issue of the CCD Bulletin. This edition marks the launch of the CCD public consultation. The most important message is to create awareness about the launch of the consultation, so the contents will centre primarily on this, although it includes other information too.
Tord Johnsen
Project Manager for the CCD implementation
Summary
Over the last few months, the BERR team has been putting together the consultation document which was published on 14 April 2009. We have acted upon advice from our stakeholders, and secured an agreement for shortening the consultation period from 12 to 8 weeks in order to move more quickly to the point at which we can share draft regulations. This reduction means that we will collect responses to the consultation until Wednesday 10 June. We recognise that a shorter consultation period leaves less time for considering responses, but we hope that the benefit of saving four weeks in the process will add significant value in taking the implementation forward.
Key messages
Changes in legislation – Our legal advisers are in the process of considering how existing UK legislation will need to be amended as a result of the transposition of the CCD. As we have indicated previously, the highly complex interaction with existing legislation and the need to consult Parliamentary Counsel on the impact which amendments will have on primary legislation, still make it difficult to give a definite date for the publication of the draft regulations at this stage. In addition, where we have freedom to choose exactly how to implement specific provisions of the Directive, it clearly makes sense to await the outcome of the consultation before drafting. Nevertheless, with these provisos, it remains our firm intention to make draft regulations available at the earliest opportunity.
Transposition workshop – A second transposition workshop was held by the Commission on 27 March; as well as an opportunity to share progress and provide responses to new questions raised by Member States, the session included a work in progress update from Mrs Gloria Soto, the Spanish academic who is preparing an explanatory study on Article 19 and the related Annex; she will conclude her work by the end of this month and the Commission hopes to make her report - which will include an Excel model for use in APR calculation - available in June. The UK has been asked to provide more information on how it calculates APR for products with no fixed repayment timetable, showing in particular how interest and any other charges are dealt with in the 12 month period (Annex I (II) (d)); in this regard the UK Cards Association are assisting us with the supply of an Excel model showing credit cards as an example. Consideration is being given to holding a further workshop in the autumn; the respective European Industry and Consumer groups may be invited to part of the session, to discuss any pan EU issues.
Impact assessment – BERR will issue a consultation stage impact assessment with the consultation document it self. Additionally, we will make an independent study on the implementation of the CCD available from the end of April (specific date is yet to be confirmed). This research was commissioned by BERR and will provide additional information on the financial impact of transposition.
Next Steps
The next CCD Stakeholder Meeting will take place on 21 April and will focus on the consultation process, guidance, impact assessment and the timetable going forward.
Working groups
It is our intention to reconvene at least some working groups where this would help progress matters during the consultation period. In particular, we will set up groups to consider implementation of articles 5.6 (adequate explanations) and 8 (creditworthiness) and we will also want to discuss more technical issues which arise in other areas. These discussions will supplement the formal written consultation. Further details will be provided.