Policy
Unfair Commercial Practices Directive
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The Unfair Commercial Practices Directive has now come into force as EU law and was implemented into UK law on 26 May 2008 by the Consumer Protection from Unfair Trading Regulations 2008. The 2008 Regulations apply to -among other things - financial services' businesses, including building societies.
The Directive introduced a general duty not to treat customers unfairly, in respect of non-contractual issues, in most business areas.
Businesses are obliged not to mislead consumers through acts or omissions; or subject them to aggressive commercial practices such as high pressure selling techniques. The Directive also provides additional protections for vulnerable consumers who are often the target of unscrupulous traders.
The BSA has worked on the draft Directive, in conjunction with the DTI, the CBI and other trade bodies, since its early stages and is contributing to the development of the UK Regulations.
The BSA has also provided guidance to help building societies comply with the Directive, as well as all the potentially overlapping or similar provisions, including the Unfair Terms in Consumer Contracts Regulations, the unfair relationship test in the Consumer Credit Bill, the Banking Code and the FSA's Treating Customers Fairly Project.
