Consumer Credit Flashcards
Which of the following is exempt from the consumor credit act?
A) a credit card with a limit of £5000
B) a further advance for house repairs of £15,000
C) a loan for £20,000 secured on a property
D) an unsecured personal loan of £10,000
B) a further advance for house repairs of £15,000
Mortgages and further advances are regulated by MCOB rather than CCA
How does providing an APR in relation to consumer credit help consumers?
It allows consumers to compare products more accurately, as the APR includes not only the interest rate but also any fees and charges that apply to the product
Businesses are not protected by the provisions of the consumer credit acts, true or false?
False.
Partnerships with three partners or fewer, and sole traders are covered by the CCAs, as well as a natural person amd unincorporated associations.
How long is the cooling off period for a customer once they have signed a consumer credit agreement?
14 days from the conclusion of the agreement or from when the consumer recieves the agreement if this is later.
If a lender rejects an application on the basis of information recieved from a credit reference agency, what must the lender do?
A) ensure the applicant is not made aware of the reason for the rejection to protect the confidentual nature of the lenders relationship with the credit reference agency.
B) advise the applicant of the reason for rejecting their application.
C) advise the applicant of the reason for rejecting their application and provide details of the credit reference agency used.
D) advise the applicant of the reason for rejecting their application and provide details of a debt counselling service.
C) advise the applicant of the reason for rejecting their application and provide details of the credit reference agency used.
A charity that provides debt counselling services must have full permission from the FCA. True or False?
False
Full permission is needed for debt counselling carried out on a commercial basis.
What is the maximum that a borrower can be required to repay to a high-cost, short term lender in fees and charges?
100% of the original amount borrowed
Interest rates provided in an advertisement must include what?
A representative example that includes a representative APR
Providers of consumer credit must check that the applicant can afford the repayments and must check the applicants status with a credit reference agency, true or false?
True
These are included wothin CONC 5: Responsible lending
Which previously unregulated area of consumer credit now falls under the provisions of CONC7?
Debt collection and debt administration
