CONSUMER CREDIT ACTS 1974 AND 2006 AND PROTECTION

Consumer Credit Acts 1974 and 2006 and Protection

Consumer Credit Acts 1974 and 2006 and Protection

Introduction

The industrial revolution and the advent of the post-industrial age changed the scenario of production and business regulated by traditional codes. The development of science and technology faces direct hits on production and marketing of goods and services. The mass production of goods, and scale, took the business sector to develop techniques for positioning and distribution. New industries were forced to create demand proportional to its capacity, devising new techniques for mass market also (Malhotra, 2003, 83-96).

In the new market environment, install a product or service on the market demanded renewed efforts on the part of suppliers, who were obliged to devise tools to capture the consuming public, install the desire, generating the need for the acquisition or recruitment and facilitating access to such goods.

Discussion and Analysis

The retrospective is revealing that the issue of consumer credit has always generated controversies and antagonisms. On one hand, financing for consumption is accepted and promoted as an indispensable tool for access to the property in individual and family economies and, on the other hand, the conditions invoking censorship or philosophical reasons, moral judgments or imperatives justice (www.johnantell, 2003).

It has been said that the process of consumer credit standing is frankly latest in contemporary societies. In the United Kingdom, has managed to impose legitimacy thanks to a remarkable mobilization of all parties involved, which does not mean that the difficulties on the subject are gone, but the European society has taken in an objective way, "without that omnipotent guilt complex in the world ".

The New Rules on Consumer Credit

The law of 13 June 2010 has profoundly changed the law of 12 June 1991 on consumer credit. These changes should provide better information and consumer protection. The new rules will come into force on 1 December 2010. The consumer Credit Act 1974 is being designed for regulating a wider range for credit based on agreement. The article focuses on section 75 of the Act and its practical effect on the consumers.

The Act of 12 June 1991 on consumer credit should be adapted in order to transpose into Belgian law the European Directive 2008/48/EC on credit agreements for consumers. This was done by the Act of 13 June 2010, which should allow for better consumer information and protection (Diamond, 1982).

Thus, the scope of the Law on consumer credit has been significantly expanded, among other things, increasing limits the amount of credit to which the Act applies. Therefore, consumers whose credit agreement was found by deed for an amount greater than € 20,000 can now also enjoy the protection of the law on consumer credit (provided that the amount borrowed does not exceed not € 75,000).

Then, each advertising a consumer credit will now mention the message "Attention borrow money also costs money." The consumer must be informed simultaneously borrowing costs. Advertising stating an interest rate or any figures relating to credit ...