Consumer Credit Act

The Consumer Credit Act 1974 reformed the law relating to consumer credit and it requires most businesses that lend money to consumers or offer goods or services on credit or engage in certain ancillary credit activities to be licensed by the Office of Fair Trading. If you engage in any of the above practices and don’t have a Consumer Credit Licence then you could face a fine or even a custodial sentence. In 2006 the act was amended to extend the scope of the 1974 version to offer better protection from consumers as well as increasing the powers of the OFT.

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