EU consumer credit directive 2011

Effective from 1st February 2011 the EU Consumer Credit Directive is intended to reduce irresponsible lending by Financial Institutions. One effect of this is that all new applications for monthly direct debit payments of insurance premiums will be subject to a financial check, prior to the direct debit arrangement being put in place.

The credit check requires insurance brokers to provide to the lender the full name, date of birth and address of the policyholder. In most cases the financial check will be carried out electronically and will be virtually instant. However we are required to advise all new applicants that the providers of premium finance are required by the directive to carry out such a check.