Consumer Credit Legislation
Consumer Credit Act 1974
The 1974 Consumer Credit Act regulates consumer credit and hire agreements for amounts up to £25,000.
Its protections apply to agreements between traders and individuals, sole traders, partnerships and unincorporated associations. However it does not cover agreements made between traders and corporate bodies such as limited companies.
The Consumer Credit Act sets out rules for:
- The form and content of agreements
- Credit advertising
- The method of calculating the Annual Percentage Rate (APR) of the Total Charge for Credit
- The procedures to be adopted in the event of default, termination, or early settlement;
- Extortionate credit bargains
Click here for a copy of Consumer Credit Act 1974 [PDF File]
Consumer Credit Bill 2005
The Consumer Credit Bill 2005 is the culmination of a three-year review of consumer credit law. It was designed to reform the Consumer Credit Act of 1974 in order to protect consumers and create a fairer and more competitive credit market by:
- Enhancing consumer rights and redress by empowering them to challenge unfair lending and by creating more effective options for resolving disputes
- Improving the regulation of consumer credit businesses by ensuring fair practices
- Making regulation more appropriate for different types of consumer credit transaction by extending protection to all consumer credit and by creating a fairer regime for business.
Click here for a copy of The Consumer Credit Bill 2005 [PDF File]
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