Consumer Credit Act 2006

The Act

8. The main areas covered by the 2006 Act are:

• the regulation of consumer credit agreements and consumer hire agreements;

• the provision of information to debtors and hirers after the agreement is made;

• unfair relationships between debtors and creditors;

• the licensing of consumer credit and hire businesses and ancillary credit businesses;

• the powers of OFT in relation to the licensing of consumer credit and hire businesses and ancillary credit businesses;

• appeals from decisions of OFT in relation to the licensing of consumer credit and hire businesses and ancillary credit businesses; and

• the extension of the jurisdiction of the Financial Ombudsman Service established under the Financial Services and Markets Act 2000.

9. In addition to amending the 1974 Act, the 2006 Act amends:

• the Sheriff Courts (Scotland) Act 1971 and the Solicitors (Scotland) Act 1980 to allow the lay representation of debtors or hirers in applications relating to time orders in Scotland;

• the Bankruptcy (Scotland) Act 1985, the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 as a consequence of the provisions in the 2006 Act dealing with unfair relationships;

• the Criminal Justice and Police Act 2001 as a consequence of the provisions in the 2006 Act concerning powers of OFT in relation to entry into premises;

• the Tribunals and Inquiries Act 1992 as a consequence of the provisions in the 2006 Act concerning the establishment of the Consumer Credit Appeals Tribunal; and

• the Financial Services and Markets Act 2000 as a consequence of the extension of the jurisdiction of the Financial Ombudsman Service.

10. The 2006 Act has no freestanding parts, apart from the transitional and other supplementary provisions in sections 66-71. All the substantive provisions are amendments to the 1974 Act and the other Acts mentioned above.