The Consumer Credit Act 2006 Paves The Way To Challenge Lenders

Jan 24 at 4:04pm by admin

The growth in consumer credit since 1979 has taken place alongside Government policy of financial deregulation combined with ever increasing willingness of consumers to take on credit agreements.

The willingness of UK consumers to buy now and pay later, together the existence of only a basic regulatory framework to control credit, means that British consumers are widely regarded as the top of the European league table in their use of credit.

The growth in consumer credit has highlighted the issue of market regulation. Partly this has been concerned with the macroeconomic effect of a growing volume of consumer credit.

The purpose of the 2006 Act is to reform the 1974 Act to:

• provide for the regulation of all consumer credit and consumer hire agreements subject to certain exemptions;

• make provision in relation to the licensing of providers of consumer credit and consumer hire and ancillary credit services and the functions and powers of OFT in relation to licensing;

• enable debtors to challenge unfair relationships with creditors

Don’t miss a single tip! Subscribe to Personal Finance Claims

Technorati Tags: consumer credit, credit