Instead of providing reasonable consumer protection, these provisions are used in most cases by defaulting borrowers who attempt to evade liability under the agreements they enter into or by claims settlement firms on their behalf. Now that the rules have been in place for a few years, these agreements will be concluded following significant accessibility and solvency assessments. The initial reason why Parliament considered it necessary to introduce these information requirements was that borrowers had not received information during the term of their agreement, unless they had expressly requested it. Parliament`s intention can be satisfied by a much less pre-regulatory regulation and without the terrible penalties for breaching the rules which, most of the time, have given rise to unexpected strokes of luck for borrowers who have not suffered a disadvantage. The effectiveness of existing legislation in promoting innovation and competitiveness in the market could be examined. The needs of clients are constantly evolving, as is the way they wish to provide services to them. Borrowers increasingly want to apply for a loan quickly, easily and online via tablets and their mobile devices. The legal framework should support and facilitate innovation, while allowing, as far as possible, the security of the future. In this context, the current requirements for the creation of agreements, their content, the obligation to sign and the highlighting of certain information could be usefully revised. If new credit agreements are the preferred option, careful thought should be given to the basis on which they are executed and the processes surrounding them. While these new agreements involve the repayment of existing agreements and their long-term refinancing, they may require different wording according to the Consumer Credit Act (CCA), developed by agreements already prepared by lenders.
Further credit checks will be required and the procedures established by the CCA for the execution of regulated credit agreements will have to be followed. . . .