Brexit: what are the implications for UK consumer credit firms?

Whilst there is considerable ongoing discussion and speculation about the impact of Brexit, much of this has been about the economic and political consequences of this historic event. How do we think consumer credit lenders might be affected?

Apart from indirect economic consequences, such as the effects of Brexit on vehicle and equipment prices and values, as well as the new and used market generally, and whether all this will slow down lending activity, we believe that it will be very much business as usual from a legal and regulatory perspective. It is not thought that consumer credit benefits significantly, if at all from the single market, as lending does not work well on a cross border basis.

Foreign currency loans will undoubtedly suffer from uncertainties with currency fluctuations, notwithstanding (although possibly due to) enhancements to consumer protection already brought in by the EU Mortgage Credit Directive (“the MCD”). Those enhancements will undoubtedly be relevant to the many ex pats living abroad but may cause lenders to restrict further lending in this area.

Read the full article on our dedicated Consumer Credit microsite »

This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

David Wood


I advise clients in all sectors on asset and consumer finance documentation and procedures and FCA consumer and mortgage credit regulation.

Julia Williams

Partner - Head of Consumer Credit and Asset Finance Sector

I am a Partner and head up the Lender Services Team in Specialist Litigation and our Commercial Legal Support Centre (LSC) which is responsible for delivering process driven legal services differently.

John Perez


I head the Lender Services division, acting for motor finance lenders and leasing companies on volume collection/recoveries instructions and on specialist defended cases.