Credit

We are responsible for enforcing the Consumer Credit Act 1974. 

The Act regulates consumer credit and consumer hire agreements for amounts up to £25,000. Its protections apply to agreements between traders and individuals, sole traders, partnerships and unincorporated associations, but not agreements made between traders and corporate bodies such as limited companies.

It lays down rules covering:

• 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

The Act also requires that all traders who make regulated agreements obtain licences from the Office of Fair Trading. Credit brokers, debt advisors and others will also require licences.