European Consumer Credit Directive.

European Consumer Credit Directive

The European Consumer Credit Directive (ECCD) – which may also be referred to as the Consumer Credit Directive (CCD) – has been brought in across Europe to establish common consumer credit practices. From a UK perspective, this Directive will amend and update the Consumer Credit Act.

Effective from the 1st February 2011, the ECCD will apply to the following:

  • Customers who purchase vehicles through Hire Purchase and Agility, who are either
  • Private Individuals borrowing up to and including £60,260, or
  • Small Businesses (Sole Traders and Partnerships of 3 or less) borrowing up to and including £25,000 where a business user exemption has been signed

For finance agreements above this limit and regulated leases, the existing Consumer Credit Act arrangements will continue to apply unchanged.

 

Right of Withdrawal

The ECCD provides customers with the right to withdraw from their finance agreement, 14 days after signing the finance agreement.

 

Q. I was told I could withdraw from my agreement, is that correct?

A. As of the 1st February 2011, the ECCD provides customers with the right to withdraw from their finance agreement, not the vehicle purchase, subject to the finance agreement falling within the ECCD parameters. Therefore, if your wish to withdraw you can do so, subject to contacting us within 14 days of signing the finance agreement. The 14 days starts the day after the agreement has been signed.

To do this, you should contact our Customer Services Department on 0370 847 0700 immediately.

 

Q. If I withdraw from my agreement, what will I need to pay?

A. You will be asked to pay the balance financed which you can do either by Direct Debit or Debit Card. You need to make this payment within 30 days of notifying us. We reserve the right to charge interest on a daily rate until such time as full settlement has been received.

 

Q. If I decide to withdraw from my agreement, what’s the best method to contact Mercedes-Benz Finance?

A. You can either contact us verbally or in writing.

To contact us by telephone, please contact our Customer Services on 0370 847 0700.

To contact us by post-
Customer Services Department
Mercedes-Benz Finance UK Ltd
Tongwell
Milton Keynes
MK15 8BA

 

Q. If I use my right to withdraw am I able to hand my vehicle back to the Retailer or Mercedes-Benz Finance?

A. Unfortunately not, you must repay the full capital borrowed within 30 days and the vehicle remains with you.

 

Q. Can I change my mind after I have given notice to withdraw?

A. Unfortunately, once notification has been received either verbally or written we are unable to reverse the transaction. Please make sure that if you do want to withdraw from your finance agreement that you have funds in place to do so.

 

Q. What settlement method is used for withdrawal?

A. You will need to pay the capital outstanding and we also reserve the right to add interest owing up and until the date settlements funds are received.

 

Q. If I withdraw from my finance agreement, will it affect any future credit applications?

A. Once you withdraw we will make arrangements to ensure that no footprint pertaining to a withdrawal appears on your credit file.

 

Q. Are there any penalties for withdrawal?

A. We charge an additional 30 days interest in accordance with the ECCD legislation.

 

Q. If I withdraw from my finance agreement can I also hand back the vehicle?

A. You can withdraw from the finance agreement only by paying the capital outstanding, but the vehicle will remain yours and you cannot withdraw from this.

If you are thinking of withdrawing from your finance agreement, please contact our Customer Services Department on 0370 847 0700.

 

Partial Settlements

The ECCD provides customers with the right to be able to partially settle their agreement, which you may want to do to reduce your monthly payments.

Q. Can I pay some extra money off my agreement and if so when?

A. Yes you can pay money off your agreement partially at any time.

To contact us, please call our Customer Services Department on 0370 847 0700.

 

Q. What are the payment methods for partial settlement?

A. Direct Debit only

 

Q. Is there a minimum or maximum payment I can make for partial settlement?

A. Please contact our Customer Services Department to talk through the options.

 

Q. Are there any penalties for partial settlement?

A. We charge an additional 30 days interest in accordance with the ECCD legislation.

If you wish to partially settle your finance agreement, please contact our Customer Services Department on 0370 847 0700.

 

Amortisation Statements

The ECCD allows you to request an Amortisation Statement. This will give a view of the capital and interest payable on your agreement going forwards.

Any customer wishing to receive an Amortisation Statement should contact our Customer Services Department on 0370 847 0700 who will arrange this on your behalf.

 

Transitional Periods

From the 1st February 2011, customer’s who took out Finance Agreements with us on or after the 11th June 2010 (where the finance agreement falls within the parameters of the ECCD) are able to request:

  • Partial Settlements, and
  • Amortisation Statements

 

General Questions

Q. Who do I make a complaint to if I’m not happy with the process?

A. Please contact our Customer Services Department on 0370 847 0700.

 

If you have any other queries, please contact our Customer Services Department on 0370 847 0700.