Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what plans the Government has to implement a requirement for payment services lenders to clearly stipulate what the total cost of the loan will be for the entirety of the loan period.

The Financial Conduct Authority requires firms to provide adequate pre-contractual explanations to enable consumers to assess whether the proposed credit agreement is suited to their needs and financial situation.

The requirement to provide pre-contract information (including the “total charge for credit to be provided under the agreement”) is set out in the Consumer Credit (Disclosure of Information) Regulations 2010 (subsequently amended by Consumer Credit (Amendment) Regulations 2010.) These regulations are made under s.55 Consumer Credit Act 1974 and implemented the various provisions in the Consumer Credit Directive requiring creditors under certain types of agreement to disclose information before the agreement is made.