3 June 2005
A new level of clarity has been brought to customers for their loan agreements.
The new, straight-forward information will help them shop around for the best deal according to the Department of Trade and Industry has said.
The changes, which will force lenders to provide information including the total amount repayable on a loan, are seen as a welcome step to clueing up the consumer.
Claire Whyley, deputy director of policy at the National Consumer Council, said: "With debt now affecting a wider spectrum of people - including the better off - and personal bankruptcy figures on the increase, these new obligations on lenders are extremely welcome.
"Lenders must now make sure they don't pull the wool over people's eyes from start to finish of a credit deal."
In addition to clearer information, the burden of early repayments will be slightened on the consumer.
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