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Licences - credit provider

 

The 1974 Consumer Credit Act (CCA) regulates consumer credit and hire agreements for amounts up to £25,000. Its protections apply to agreements between traders and individuals, sole traders, partnerships and unincorporated associations.  However, it does not cover agreements made between traders and corporate bodies such as Limited Companies. Following an extensive review of the 30 year old Consumer Credit law by the governments Department of Trade and Industry, the Consumer Credit Act 2006 was passed in March 2006. Key provisions of the CCA 2006 were brought into force on April 6th 2007.

The new legislation includes requirements on businesses with a consumer credit licence (issued by the Office of Fair Trading) to have formal complaints handling procedures.  Also, for the first time these businesses will also be covered on a statutory basis by the Financial Ombudsman Services.