How does the Consumer Credit Act 1974 protect the consumer?
Consumer Credit Act regulates all those who are involved in offering credit. It enables the consumers to gain a better understanding of the nature of the agreements they are getting into. Consumers tend to get lured by attractive interest rates and freebies offered by lenders but this Act enables the consumers to make the best informed choice. Consumer Credit Act also controls and regulates the activities of those who can provide credit under this Act. It also incorporates what steps a lender must take in case of default. This is not just limited to banks but also traders who offer goods on hire purchase and the various transactions they undertake. This Act lays down rules which covers the form and content of all agreements, credit advertising, method of calculating Annual Percentage Rate (APR) and the procedures which will be adopted in the event of early settlements, defaults or even termination. Consumer Credit Act 2006 Consumer Credit Act 2006 is the most significant change since C
