Car Finance Customers Given Better Protection by SECCI Regulations

    DORSET, ENGLAND, January 21, 2011 /24-7PressRelease/ -- The first guidelines for the new Standard European Consumer Credit Information (SECCI) were released this week. The new European legislation, which will be in place by the 1st February, has been created to give consumers a better understanding of how their credit file is affected when applying for finance and to aid them in making the correct financial decisions.

Companies like Creditplus, who specialise in providing car finance for consumers, need to follow the new SECCI guidelines, which are made up of five main elements. The following points outline how a consumer is affected when applying for car finance:

1. A consumer has the right to a SECCI quotation showing the options available to them for their finance deal.

2. If consumer's application for car finance is declined, a lender, broker or introducer must disclose which credit agency was used during the process. This gives the consumer the ability to check their credit file either during or after the process.

3. A consumer must receive an SECCI application pack. The pack provides the consumer with all the pre-contract information they need to make themselves fully aware of the details of the car loan. Information includes the cost, terms and conditions and the consumer rights. Importantly this now includes a 14 day cancellation period that allows the consumer to make sure they have received a fair deal when compared to the rest of the market.

4. A new explanation document outlining the new SECCI legislation must be given to the customer either before or at the point of sale. The document will provide the customer with details of their rights under the new consumer directive.

5. Once a car loan has been paid out, the lender is also obliged to send out a welcome pack. In this pack the consumer will be provided with details of the cancellation process, the full terms of the loan, contact details and clear advice on any interest charged.

The new consumer directive will provide people looking for car finance with a lot more protection. In the past many small brokers would multi-propose a consumer to several lenders in order to get an acceptance. The SECCI will help to combat this practice as consumers will be able to clearly see where they have been propped, and will be able to detect any damage caused to their credit rating as a result.

Creditplus have used market leading techniques to stop this approach for the last two years. They are the only car finance provider who don't prop customers to multiple lenders at the point of application. Instead they have built a system that searches the consumers' credit file, matches their profile to relevant lenders, while leaving no financial footprint.

Consumers also gain far more protection because lenders in the past have used non-cancellable documents signed at dealerships. This doesn't give the consumers any options to change their mind. The new directive will mend this and give the consumer a 14-day cool-off period.

Shaun Armstrong, Managing Director of Creditplus, commented, "I am delighted that consumers are finally getting the protection they need and deserve. At Creditplus we have always put our customers first. We do not submit multiple proposals for customers because we know it can damage their credit rating. The new directive will make it much harder for brokers, dealers and dealer groups to take advantage of consumer's trust while damaging their credit ratings. We are embracing the changes that are being made with the SECCI and think consumers will really benefit from them."

The new guidelines are set to help consumers get the best car finance deals, while being provided with all the necessary information to make sure they make the correct financial decision.

Creditplus is a leading provider of car finance that specialise in providing consumers with any credit status the best possible loan for their credit rating.

Creditplus' unique offering is the ability to give their customer a true online, instant lending decision. They can also help customers to finding the perfect car, negotiating a price on their behalf and helping with delivery of the vehicle if needed.

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