New rights introduced today will give customers more control over how they manage their credit accounts and make it easier for them to shop around for the best deal. This is the message from the Finance & Leasing Association, which represents lenders offering credit cards, store cards, store instalment credit and unsecured loans. The main changes introduced today are:

Standardised credit information - all lenders will provide information about credit, interest rates, and credit checks in a Pre-Contractual information form, which will be given to customers before they are sold credit. The form is in a standard format for all lenders, to help customers compare products and shop around more easily.

Adequate explanations - During the application process, the lender will explain in person certain aspects of credit to their customers. This will help customers to decide whether the credit product is right for them. The explanation will include information about the total cost of credit, the repayments, and the consequences of non-payment.

Right to withdraw - under the new Directive, the customer will have the right to change their mind for up to 14 days after signing an agreement. Customers exercising their right to withdraw will need to repay the credit, and also any interest for the days the credit was drawn down.

Early repayments - customers will be able to repay outstanding credit in full or in part without incurring an early repayment penalty. This is to give customers more flexibility to help them manage their finances.

Fiona Hoyle, Head of Consumer Finance at the Finance & Leasing Association, said:

"The Consumer Credit Directive means that consumers will receive much more information when they are looking for a new loan, credit card or in-store credit deal. This is good news for borrowers who will be able to shop around and find the best deal more easily."