Credit terminology - what does it mean?
(for Scotland)
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The law that governs credit in the United Kingdom is the Consumer Credit Acts of 1974 and 2006 and the numerous regulations and orders made under them.
Within the legislation there are many definitions that may mean little to the ordinary person in the street. It is important therefore to be aware of what type of credit agreements is available, how they affect you and the consequences for not complying with the terms within them.
It is also useful to know how credit reference agencies work, what happens when a debtor defaults on an agreement (does not make the required payments or breaches another part of the contract), how the interest rate and APR are calculated and what they mean, and how section 75 of the Consumer Credit Act can affect you (imposes equal liability on the credit granter and supplier of goods for breach of contract).
