UK car dealers may need to change the way they advertise finance packages thanks to consumer credit reforms just announced, according to the Retail Motor Industry Federation (RMI).
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Several changes to the Consumer Credit Act have been announced including the Consumer Credit (Advertisement) Regulations 2004, which replaces three previous regulations dealing with credit advertising. The rules also introduce a new way of calculating the annual percentage rate (APR).
The new rules come into force on 31 October.
RMI business development specialist Louise Wallis said: “The new rules are broadly good news for both businesses and consumers, as they protect both at the same time. Dealers will find it easier to conform to this single set of rules on advertising, as opposed to the three co-existing regulations they had to cope with previously. At the same time consumers will benefit from a greater clarity in information provided through advertising.”
However, dealers may need to make some changes to their advertising, Wallis said.
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By GlobalData“Dealers must ensure that any advertising that features credit information adheres to the new rules once they come into force.”
