4.For the purposes of these notes the Consumer Credit Act 2006 will be referred to as “the 2006 Act”. The 2006 Act principally amends the Consumer Credit Act 1974 (the “1974 Act”), which is the statute governing the licensing of, and other controls on, traders concerned with the provision of credit or the supply of goods on hire or hire-purchase to individuals and with the regulation of transactions concerning that provision or that supply. The purpose of the 2006 Act is to reform the 1974 Act to:
provide for the regulation of all consumer credit and consumer hire agreements subject to certain exemptions;
make provision in relation to the licensing of providers of consumer credit and consumer hire and ancillary credit services and the functions and powers of OFT in relation to licensing;
enable debtors to challenge unfair relationships with creditors; and
provide for an Ombudsman scheme to hear complaints in relation to businesses licensed under the 1974 Act, as amended.