The Consumer Credit Act was passed in July 1974 and it aims to protect all consumers with debt of less(prenominal) than Â£25,000 in consumer transactions with no thought to how the debt was acquired. The Act itself is describe as being merely a skeleton with the regulations that do been added later creating the bulk of the law. The majority of operative provisions were not brought in immediately due to the huge scope of administrative controls it established along with the range of transactions cover.
The main need of the laws prior to 1974 was that numerous different acts covered what was fundamentally the homogeneous transaction and although most of the problems of consumer credit were covered by these, on that point was persistence for a more regimented system. It was due to this that the Crowther deputation was set up with the purpose of evaluating the laws currently in channelise and recommending further changes.
Before the Consumer Credit Act, the only people who had to be licensed were money lenders however the act set up a broader licensing system which is administered by the Office of Fair Trading. A licence is now required by any soul . carrying on a consumer credit or consumer hire business line .
To apply a written application moldiness be sent to the director-general of the Office of Fair trading where the Director must confirm that the applicant is fit to engage in activities covered by the licence. The Director has discretion to vary, suspend, revoke or decline a licence however he must specify the licensee of his intention to do so and they argon then tending(p) the right of appeal.
One of the main difficulties in the protection of the consumer is in guaranteeing that the consumer fully comprehends the extent of their rights and obligations. Sections 60 64 of the Act are modelled on the previous hire-purchase legislation, these sections have been calculated to promote the debtor in this area. Both debtor and creditor must contract a document in the agreed form which includes all...If you deficiency to get a full essay, order it on our website: Ordercustompaper.com
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