StudentShare solutions
Triangle menu

Consumer Credit Act 2006 - Essay Example

Not dowloaded yet

Extract of sample
Consumer Credit Act 2006

The Office of Fair Trading has been given powers of superintendence over the activities and licensing of the lenders and others involved in allied activities. The lenders have also been given the relief of approaching the court for enforcing improperly executed agreement without procedural formalities having been complied with. Overall the Consumer Credit Act 2006 is a fair measure to both parties concerned and in no way appears to give consumers any undue advantage over the creditors.
Consumer Credit Act 2006 is an amendment act of Consumer Credit Act of 1974 having a long history. The amendment was necessitated to provide for certain reforms in consumer credits and consumer hire agreement along with exemptions. Besides, it seeks licensing of all the related activities, empowering debtors to act against unfair relationship with the creditors and creation of an Ombudsman scheme to reddressal for complaints under the 1974 Act as amended up to date.
This paper seeks to enquire whether the amendment act of 2006 is going too far to protect the consumers against the creditors and suppliers. Hence principles of Consumer Credit Act 2006 will be examined and whether the act gives too much leverage to the consumers who are the debtors to the detriment of creditors and suppliers.
Literature review is a part of methodology of qualitative research. ...
Hence principles of Consumer Credit Act 2006 will be examined and whether the act gives too much leverage to the consumers who are the debtors to the detriment of creditors and suppliers.

Chapter 2 .Literature Review
Literature review is a part of methodology of qualitative research. It forms the secondary data required for the research. The aim of the present study will be largely facilitated by review of literature on the subject chosen for the research; that is whether consumer credit act of 2006 has gone too far in pampering the consumers/debtors with too many privileges to the disadvantage of the suppliers/creditors.
Background
Expananotory note to the act of 2006 state that Government mooted in 2001 review of the 1974 Act through consultations with the interested parties on the impact of the then existing rules regarding information disclosure, premature settlement, unfair credit transactions, licensing of consumer credit agencies, financial limits beyond the coverage of 1974 Act and consumer reddressal mechanism. Following this, a white paper was published in December 2003 captioned "Fair, Clear and Competitive - The Consumer Credit Market in the 21st Century". At the time Government had been seized of the problem of over-indebtedness and trying to find solution to it by consultations with the industry, representatives of the consumers and advisers, as a sequel to which Department of Trade and Industry (DTI) and Department for Work and Pensions jointly brought out paper entitled "Tackling Over-Indebtedness- Action Plan 2004". The major issues encompassed by the 2006 Act are 1) how consumer credit agreements and consumer hire ...Show more

Summary

The Consumer Credit Act 2006 amending the original act 1974 seeks to rectify deficiencies that have led to the exploitation of consumers by the lenders and unequal or unfair relationship between them giving lenders undue advantage. The financial limit of 25,000 has been removed in keeping with the changing credit needs of the borrowers in a consumption economy…
Author : reichmann
Consumer Credit Act 2006 essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Consumer Credit Act 2006"
with a personal 20% discount.
Grab the best paper

Related Essays

Credit Cards vs Debit Cards
Debit cards are important in that they help users budget since the bank balance decreases with each transaction, which reduces the chances of overspending. Credit card on the other hand offers the users an opportunity to spend more that they have and pay later.
4 pages (1000 words) Essay
Discuss critically contemporary international approaches (e.g. World Bank, Financial Stability Board) to consumer credit regulat
1-25). 17 Conclusions and Recommendations 18 References 20 Bibliography 29 Introduction Over the recent past decades, many reforms have been made in the paradigm of consumer credit laws around the world, such as the UK, Canada, Australia, the US and South Africa owing to the continually rising complexities witnessed in the modern business environment.
15 pages (3750 words) Essay
The Equality Act 2006
The general and specific duties on public authorities enshrined in the Equality Act 2006 to promote gender equality of opportunity may have a ripple effect on private organizations who supply them1. They are aimed at making the most of the talent in the workforce - rather than excluding or marginalizing sectors of the workforce, which was happening universally prior to government intervention in the 1970s and since:
10 pages (2500 words) Essay
Companies Act 2006
The objective of the Companies Act 2006 in general is to implement a lighter regulation on businesses and encourage long-term investment in the United Kingdom (Thomas, 2007). A review of the old company law by Benjamin Hopps of Sykes Anderson law firm found that the law is an over-regulation and has been too complex especially to small companies (Thomas, 2007).
6 pages (1500 words) Essay
The Charities Act 2006
These requirements were often so bureaucratic that they had a negative effect on the way in which the charity could operate (O'Halloran, McGregor-Lowndes and Simon 152). As a result of this, the Act was passed amending and adapting the previous charities acts in 1992 and 1993.
4 pages (1000 words) Essay
Consumer Protection Essay
The work will be based on the Consumer Credit Act 2006, Unfair Contract Terms Act and Trade Descriptions Act 1968. There are the two basic documents for consumer protection within the UK, which provide the buyer with the right to receive the goods he buys in good condition, without any misleading trade descriptions.
6 pages (1500 words) Essay
Consumer Credit Act 1974
The Consumer Credit Act 1974 regulates consumer credit and consumer hire agreements for amounts up to 25,000. Its protections apply to agreements between traders and individuals, sole traders, partnerships and unincorporated associations, but not agreements made between traders and corporate bodies such as limited companies.
14 pages (3500 words) Essay
Consumer Proection
y the Unfair Contract Terms Agreement and Consumer Credit Act, as the business-debtor also serves as the buyer and consumer of the goods (services) bought in credit. Thus, the present work is the description of the real situation and the solutions (remedies and liabilities) of
4 pages (1000 words) Essay
MORTGAGE LAW
unt to duress at common law because no element of violence to the person was involved” (GH Treitel, The Law of Contract) There can be actual undue influence and presumed undue influence. In the case of Royal Bank of Scotland v Etridge Lord Nicholls ruled that evidential
17 pages (4250 words) Essay
Credit card
her degree in any university and to the best of my knowledge and belief, contains no material previously published, written, or produced by another person, except where due reference is made in the text. The study is an investigation of credit card fraud countermeasures as it
60 pages (15000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation