Consumer credit Flashcards
What does the Consumer Credit Act 1974 regulate?
It regulates consumer credit agreements and their terms.
How does the Consumer Credit Act impact businesses offering credit?
It imposes rules and regulations on how businesses offer credit to customers.
What are credit agreements under the Consumer Credit Act?
Credit agreements are formal contracts outlining terms between a lender (business) and a borrower (consumer).
What information is typically covered in the terms of a credit agreement?
Terms include the credit amount, deposit, payment schedule, and total charge for credit.
What is the purpose of the cancellation and cooling-off period in consumer credit?
It allows consumers a specified period to cancel credit agreements without penalties or charges.
How does the Consumer Credit Act promote transparency in offering credit?
It mandates clear and accurate information about credit terms to ensure consumer understanding.
What is the role of the Consumer Credit Act in protecting consumers from unfair credit practices?
It sets guidelines to prevent unfair practices and ensure fair treatment of consumers in the credit process.
