5B.7 Other regulatory and legislative material Flashcards
Who did the Consumer Credit Act 1974 affect?
Anyone who provided any form of credit (or advice on obtaining or repaying debts) to individuals or companies, involving credit of not more than £25,000.
What are the 2 parties to the provision of credit or a loan?
The creditor - who advances the loan or credit.
The debtor - who is taking out the credit agreement.
What has the original Consumer Credit Act 1974 been modified by?
The Consumer Credit Act 2006, but not entirely replaced.
What did the 2006 Consumer Credit Act remove?
The £25,000 limit, making all forms of credit subject to the Act’s requirements, but it also introduced two new exemptions which are loans.
What 2 new exemptions which are loans did the Consumer Credit Act 2006 introduce?
- Over £25,000 where these are for business purposes.
- Where a debtor is categorised as a high net worth individual.
What must advertising of consumer credit contain?
Details of the Annual Percentage Rate (APR) or Annual Percentage Rates of Charge (APRC) payable, and all other relevant information.
APR shows the total costs on unsecured loans, APRC on a mortgage or secured loan.
What must a customer receive copies of in relation to the consumer credit act?
Copies of the loan agreement
What happens with the debtor in the first 14 days of taking out a credit agreement?
The debtor has an initial 7 days to consider the credit agreement and then a further 7 days during which period the lender must not approach the client, to ensure no pressure can be applied.
The FCA now regulate all credit agreements. Who did they take over from?
The OFT on 1st April 2014.
What does the FOS have jurisdiction over?
Consumer credit and can have any agreement ‘put aside’ if it is unfair.
As with all the Acts that affect the financial industry, where can the origins of the Consumer Credit Act 2006 be traced back to?
The EU.
When did the Consumer Credit Directive (CCD) come into force?
On 1st February 2011, but the then-current version of the CCA did not need amending to reflect its rules.
What does the FCA have powers under the Consumer Rights Act 2015 to challenge?
Unfair terms in standard-form consumer contracts.
In relation to unfair contracts, what does the FCA act as?
A ‘qualifying body’ which means it has the power to set aside any contracts it deems to be unfair.
This is also an area mainly enforced by the Competition and Markets Authority (CMA) in its role of championing competition.
When did the Consumer Rights Act 2015 come into force?
1st October 2015.
