Consumer credit Flashcards
What is the Consumer Credit Act 1974?
It’s a law that regulates consumer credit agreements.
How does the Consumer Credit Act impact businesses?
It sets rules for offering credit to customers.
What are credit agreements?
Contracts outlining credit terms between lenders and borrowers.
What does the term “total charge for credit” mean?
The overall cost a borrower pays for the credit, including interest and fees.
What’s the purpose of the cooling-off period?
It lets consumers cancel credit agreements shortly after signing.
What does the Consumer Credit Act require about credit terms?
Clear info about credit amount, payments, deposit, and charges.
What’s covered by terms in a credit agreement?
Credit amount, deposit, payment number, total charge.
How does the Act regulate offering credit?
Requires clear info, fair treatment, transparent advertising.
