The Consumer Credit Act 2006
Consumer credit legislation has undergone an extensive overhaul as a result of the Consumer Credit Act 2006 which has amended the existing Consumer Credit Act 1974. The 2006 Act aims to provide increased protection for consumers and to create a fairer, more transparent and more competitive credit market.
The Consumer Credit Act 2006
The Consumer Credit Act 2006 has imposed major changes on the way that consumer lending and leasing can be operated.
- Consumers now have 14 days to respond to default notices
- The £25,000 limit for consumer credit agreements has been abolished subject to the business and high net worth exemptions
- The Act no longer applies to agreements with partnerships of 4 or more persons
- The licensing regime has been overhauled and the OFT will have much greater powers to police unlicensed/inappropriate consumer credit business
From 1 October 2008:
- Much more information will have to be given to consumers on an ongoing basis, including advising them on their legal rights and providing regular statements
- Notices will need to be served within a short period of time on certain sums becoming due or payments being missed. Until the notices are served, you will not be able to enforce your agreement
- Post-judgment interest can only be recovered if 6 monthly notices are served
If you would like to find out more, please contact one of our team.
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