Consumer credit act.
Tec Dedt Solutions and the Law
The Consumer Credit Act 1974 is a consumer protection law in the UK. Until 6th April 2008, it required certain businesses to obtain Consumer credit licences and protected individuals receiving credit up to £25,000. After that date, new agreements for credit in excess of £25,000 are also protected as a result of amendments made by the Consumer Credit Act 2006. Appeals under the Consumer Credit Act are made to the Office of Fair Trading.
The main provisions of the Act are to extend the scope of the Consumer Credit Act 1974
To create an Ombudsman scheme, and to increase the powers of the Office of Fair Trading
in relation to consumer credit.
In addition, it permits borrowers to challenge
in court "unfair relationships between creditors and debtors".
Office of Fair Trading
The 2006 Act empowers the Office of Fair Trading (OFT) to investigate applicants for consumer credit licences, to impose conditions on licences, and to impose civil penalties of up to £50,000 on companies which fail to comply with its conditions, appeals from which lie to the Consumer Credit Appeals Tribunal and thence, with leave, to the Court of Appeal. The Office of Fair Trading (OFT) is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. The OFT's goal is to make markets work well for consumers, ensuring vigorous competition between fair-dealing businesses and prohibiting unfair practices such as rogue trading, scams and cartels.
This means for you
- Fairer agreements between the consumer and the lender.
- The ability to challenge exisiting, 'unfair' agreements.
- Updates agreements which are enforced under the 1974 Credit Consumer Act
