Consumer Credit

Question 1

The Consumer Credit Act 1974 (amended by Consumer Credit Act 2006)

Question 2

s.21

Answer 2

only licensed traders, lenders or credit brokers may carry on the business of consumer credit and consumer hire

Question 3

s147

Answer 3

only licensees may carry out the business of credit brokerage, debit-adjustment, debt administration, debt-counselling, debt-collecting or the operation of credit reference or information agencies

Question 4

Credit

Answer 4

cash loan and any other of financial accommodation, cash here meaning money in any form s.9(1)

Question 5

Ombudsman

Answer 5

The Financial Service Ombudsman may be asked by consumers to investigate and pronounce on disputes between consumers and those providing or advising on credit

Question 6

s.8 Consumer Credit Arrangements

Question 7

CCA s.9(3)

Answer 7

Hire-purchase agreement (treated like credit agreements for fixed sum credit)

Question 8

CCA s.10(1)(b)

Answer 8

Fixed sum credit (sum of money borrowed in one amount or in instalments

Question 9

Overdrafts

Answer 9

CCA s.74

Question 10

Restricted use agreement s.11

Answer 10

common in hire-purchase agreements where the credit is provided for the one use only, such as the purchase of car (enable the creditor to monitor the debtor’s use for the credit more closely)