Consumer Credit Act 1974

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The Consumer Credit Act 1974 is a consumer protection law in the UK. It requires certain businesses to obtain Consumer credit licences and protects individuals receiving credit up to £25,000. Appeals under the Consumer Credit Act are made to the Office of Fair Trading.

Cancellable agreements have a cooling-off period starting on the day the customer signs. This period is 14 days for goods bought from a mail-order catalogue. Otherwise, it is five days from the day the customer receives either a second copy of the agreement or a separate copy of a notice of cancellation rights.

The Act is modified by the Consumer Credit Act 2006

[edit] Consumer credit licences

Consumer credit licences are issued by the Office of Fair Trading (OFT). Examples of businesses that may be required to obtain consumer credit licences are:

Retailers who arrange credit
finance companies
debt collectors, debt advisors or negotiators
credit reference agencies
hire and leasing business

However, it is possible to lawfully lend money to consumers without holding a consumer credit license if certain conditions are met. In particular, credit unions are exempted from the provisions of the Act.