New Consumer Credit Directive

The Consumer Credit Directive 2008/48/EC (“the Directive”) and the Consumer Credit (EU Directive) Regulations 2010 has introduced new rights and obligations, although The Department for Business, Innovation and Skills has decided that there will be a transitional period and any new agreements entered into after 31 January 2011 must comply with the new requirements.


Peter Hastings, Partner at Rogers and Norton reports on the key changes:


“There are several key changes. For example, Lenders have a duty to provide adequate explanations to consumers about the credit on offer to enable them to decide whether it is suited to their needs and circumstances. Lenders are also obliged to assess the creditworthiness of consumers before concluding a credit agreement or increasing the amount of credit available under an existing agreement. Lenders can decide how to assess creditworthiness, but are required to base their assessment on information obtained from the consumer, where appropriate and from a credit reference agency, where necessary.  If an application is refused on the basis of information from a credit reference agency, the lender must inform the creditor of this when it declines the credit”.

In addition, Jenna Phillips, litigation executive in Rogers and Norton
Commercial Litigation Group comments that:-

“The consumer has the right to withdraw from a credit agreement within 14 days without giving any reason, which replaces the current limited right to cancel some types of agreements. Credit intermediaries must disclose their links to lenders and disclose and agree fees for their services with the consumer. The consumer also has the right to repay an agreement early in part and to receive a reduction in the total cost of the agreement as a result. The existing legal framework for full early repayment has been retained and extended to cover partial early repayment”


Jenna Phillips adds:-


“Advertisements that contain specific information about the cost of the credit need to provide a representative example of a credit offer. The Consumer Credit (Advertisement) Regulations 2010 will dispense with the APR approach. Consumers must be given pre-contractual information in writing according to a specific format set out in the Directive. This information is set out in the Consumer Credit (Disclosure of Information) Regulations 2010 and other contractual information required is set out in the Consumer Credit (Agreements) Regulation 2010” .


Non-business unsecured overdrafts will be subject to the requirements for both pre-contractual and contractual information although an overdraft can be arranged urgently without prior written information. Where a current account allows the account holder to overdraw without a pre-arranged overdraft, information about the charges must be included in the agreement. (Regulation 19 of the Directive). Where a credit agreement is used to purchase goods, the consumer can pursue the creditor for a remedy. The value of the goods must be at least £30,000, the credit agreement must be for £60,260 or less and the consumer must have tried to obtain satisfaction from the supplier first. This supplements s75 of the Consumer Credit Act where the cash price of goods is not less than £100 and not more than £30,000. (Regulation 25 of the Directive). Finally, the total charge for credit and the APR must be calculated in accordance with a specified formula. The formula is different to the one which already applies in the UK, but the result it produces is the same and the assumptions are broadly similar. (Total Charge for Credit Regulations 2010).

Peter Hastings adds “The new Directive will provide more protection for the consumer and places extra burden and restrictions on the lender. I can foresee that there will be an increase in disputes arising from this, especially with pressure on businesses in the current economy”.


Rogers and Norton solicitors and its Commercial Litigation Group act for National and Local Finance Companies and Lenders on such matters.

Solicitor looks to challenge HMRC's detentions

Peter Hastings, a Partner with Rogers and Norton solicitors and specialist in claims involving HMRC (and its predecessors Customs and Excise and Inland Revenue) is calling for businesses within the alcohol and warehousing sectors and industries to contact him concerning their experiences with HMRC when HMRC have detained and/or seized goods. 

He also wants to hear from businesses who have been the subject of assessments leading to the insolvency of their business, and as a consequence inability to appeal the assessment.  Initially, Peter is considering mounting a challenge to HMRC's apparent power and ability to detain goods and stock without reasonable grounds for doing so, or without suspicion as to the legality of the goods i.e. whether Duty has been paid.  He is also concerned at how long goods are detained before being released or seized.

Peter has successfully acted for businesses in securing the release of stock valued at millions through the Courts, by Judicial Reviews and Injunctions.  He comments: - “I very recently advised a business whose entire stock valued in excess of £1million had been detained by HMRC, whilst HMRC investigated the Duty status of the stock. This detention put the business and its employees' jobs at risk.  It was eventually released. I am now acting for another business whose entire stock has been detained, again pending an investigation. There are no apparent suspicions for believing that Duty has not been paid; HMRC are investigating the “chain” and 6 weeks after the detention, no progress appears to have been made. My client has had to make redundancies, even though there is no suggestion or evidence that my client has acted unlawfully in anyway. We are now preparing Court proceedings to seek the release of the stock and damages for conversion. HMRC, in my opinion, do not have reasonable grounds to suspect that the alcohol was or is liable to forfeiture. Certainly no grounds or suspicions were disclosed at the time of the detention”.

Peter adds "I also consider that such detentions may be a breach of Article 1 of the First Protocol, European Convention on Human Rights. Even if there were grounds to detain, the decision to seize or return the stock really must be made within 4 weeks in my view, not just as a matter of law but for the sake of legitimate businesses, the economy and jobs. HMRC's powers derive from  the Customs and Excise Management Act 1979. Although it is relatively recent, it is in my view outdated and needs to be amended. HMRC want to be satisfied that duty has been paid and quite rightly have concerns on "missing traders".  However, it is impossible for legitimate businesses to prove this, unless they have bought direct from the brewer/manufacturer.  Of course, we all want to work with HMRC to ensure that Duty and VAT is paid, as required.  That is not the issue. I know that those within the industry are calling for a system that protects both HMRC and also legitimate businesses.  I therefore want to hear from businesses that have faced or are facing such problems, including their experiences of responding to assessments raised and being unable to appeal these due to the lack of funding.  I will then consider whether there are good prospects in challenging HMRC's powers and the current legislation, and at the time finding a solution to the current system.  We already have interest from one MP in the North on this”.

Contact Peter on 01603 666001 or ph@rogers-norton.co.uk.

Rogers & Norton go live on air in 2009

Rogers & Norton are proud to announce that, in partnership with Norfolk Community Law Service (NCLS), as from the 28th of January 2009 we shall be appearing live on Future Radio 96.9FM to offer a free 'Legal Hotspot' to listeners.

The Legal Hotspot is to be aired on Future Radio's Community Chest Show on the final Wednesday of every month at approximately 11 am. It is to offer listeners an opportunity to pitch their legal questions in advance of the show for lawyers to answer live on air.

As far as we are aware this is the first collaboration of its type in the Norfolk area. We are hopeful that along with answering a number of legal problems the Legal Hotspot will also assist in increasing the general awareness of Future Radio's listeners to the legal services that are on offer locally.

The free Legal Hotspot concept was developed by Future Radio in collaboration with NCLS and Rogers & Norton’s Tom Lawrence, who is a solicitor in our Private Client Department. Tom said “I would like to thank NCLS and Future Radio for all of their help in making the idea a reality. It has taken a lot of time and considerable effort to bring it all together, but I am hopeful that it will provide listeners with a useful forum for obtaining answers to those thorny legal issues which we all come across from time to time.”

Mark Hambling, who is a partner and member of the marketing development team at Rogers and Norton, said “We are very appreciative of Tom's hard work and dedication in seeing his idea through to what we are sure will become a successful relationship with both NCLS and Future Radio. We hope that the Legal Hotspot shall become a show not to be missed by listeners!”

Please watch our website www.rogers-norton.co.uk for future details. If you would like to listen to the podcasts of the shows, they will be made after the monthly shows on the Future Radio website (www.futureradio.co.uk).