New Legislation in Relation to ‘Consumer Savings Schemes’

The Digital Markets, Competition and Consumers Act (DMCCA) has introduced new legal duties, known as the consumer saving schemes (CSS) provisions, for businesses offering ‘consumer savings scheme contracts’ to consumers. These provisions apply to trades, crafts, professions, and any other undertaking carried on for gain or reward.

The new obligations require traders to provide consumers with the contact details for the insurer or trustee that protects the consumer’s payments, along with the insurance policy number and copy of the trust deed (where trust arrangements are used). This information must be provided within 30 days of receiving the consumer’s first payment. The trader is also required to notify the consumer of any changes that may take place to the provided information within 30 working days and supply the above information free of charge should the consumer request it.

Under the Act, enforcement is carried out by Trading Standards, and they will have the authority to apply to the court to sanction any business that fails to comply.