Consumer Credit Act 1974 Article Index for
Consumer Credit
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Information About

Consumer Credit Act 1974




The Consumer Credit Act 1974 is a Consumer Protection law in the UK . It requires certain businesses to obtain Consumer credit licences and protects individuals receiving credit up to £25,000. Appeals under the Consumer Credit Act are made to the Office Of Fair Trading .

Cancellable agreements have a cooling-off period starting on the day the customer signs. This period is 14 days for goods bought from a mail-order catalogue. Otherwise, it is five days from the day the customer receives either a second copy of the agreement or a separate copy of a notice of cancellation rights.

The Act is modified by the Consumer Credit Act 2006


CONSUMER CREDIT LICENCES


Consumer credit licences are issued by the Consumer Credit Licensing Bureau which is part of the Office of Fair Trading (OFT). Examples of businesses that may be required to obtain consumer credit licences are:

  • Retailers who arrange credit

  • finance companies

  • debt collectors, debt advisors or negotiators

  • credit reference agencies

  • hire and leasing business


However, it is possible to lawfully lend money to consumers without holding a consumer credit license if certain conditions are met. In particular, Credit Unions are exempted from the provisions of the Act.


SEE ALSO

Annual Percentage Rate


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