The Consumer Credit Act 20067th July 2015 2:04 pm Leave your thoughts
- Do you supply consumers with credit or credit hire?
- Do you make use of credit facilities and credit advertising?
- Have you entered into a consumer credit agreement in the UK?
If the answer is ‘yes’, then you are affected by the Act.
PLEASE READ ON FOR WHAT THIS MEANS IN PRACTICAL TERMS.
If you provide credit of any sort, you need to obtain a licence to ensure that the agreement is enforceable. If you act without a licence, penalties will be imposed and the agreement itself will not be enforceable against a debtor or hirer.
You need to ensure that any agreement you provide is deemed to be fair. Any agreement that is not deemed to be fair will be unenforceable on the consumer which could have a detrimental effect on your business.
You have to be transparent in the provision of your business. If you are providing fixed-sum credit or credit hire, you must provide debtors with your annual statements as well as notices of sums in arrears. There are negative consequences if you do not provide the required notices to debtors.
This Article has been written for general guidance purposes only. For further information or specific advice, please contact Mary Kilner or Marc Henham in the Company Commercial Department here at Colemans.
This post was written by Colemans Solicitors LLP