Consumer Credit
What the legislation does
Controls all consumer credit and hire. Requiring licensing of
traders involved in all aspects of credit and hire. All credit and
hire advertising and documentation (including electronically
communicated forms) is prescribed. Specifies information which must
be disclosed to a debtor or hirer. Credit charges and their
calculation is controlled. Illegal moneylenders, debt collecting
and credit reference agencies are controlled.
Enforcement
Advice is given to traders wishing to advertise or deal in
credit. Many complaints, on the face of it, unrelated to credit
legislation will also have to be assessed for any credit
implications. The act also affects advice given under the Sale of
Goods legislation and is linked to Stop Now orders.
Licensing
Traders utilising various forms of credit must be licensed. The
licensing itself is carried out by the Office of Fair Trading. (OFT
Online forms) New businesses are visited
to advise on need for licence when necessary. All applications for
a licence are referred by the OFT to Trading Standards for comment.
Changes to business name, address or practices have to be monitored
to ensure relevant licence details are updated. Conduct of licence
holders is continually monitored to ensure that they are a fit
person to hold a licence.
Advertising
Advertisements containing indications of provision of credit
must be monitored to ensure correct form and content is used.
Misleading credit adverts may require attempted test purchases with
officers acting undercover. Any APR given must be accurate.
Documents
Documentation i.e. consumer credit agreements, must be in the
correct form. Businesses can be advised on the format.
Documentation is routinely checked as this can affect the legality
of any contract.
Early Settlement
Advice is given to consumers seeking early settlement of their
credit agreements. Early settlement figures may be calculated &
compared with those prepared by credit company.
Premises affected
Many trade and service premises offering forms of credit,
internet sites, retail, banks, building societies, mortgage
brokers, moneylenders, car retailers, hire services (vehicles,
tools, etc), money advisors. Advertisements in newspapers, radio,
TV and other media.
Key Legislation
Consumer Credit Act 1974
Consumer Credit (Credit Reference Agency) Regulations
1977
Consumer Credit (Total Charge for Credit) Regulations
1980
Consumer Credit (Agreements) Regulations 1983
Consumer Credit (Cancellation Notices and Copies of Documents) Regs
1983
Consumer Credit (Enforcement, Default and Termination Notices) Regs
1983
Consumer Credit (Rebate on Early Settlement) Regulations
1983
Consumer
Credit (Advertisements) Regulations 2010
Consumer
Credit (Early Settlement) Regulations 2004
Do you need a consumer credit licence?
Contact Perth & Kinross Trading Standards or download this
leaflet from the Office of Fair Trading (OFT)
Applying for a licence
Advice on applying for
a licence from the OFT
Further information on credit licensing
