ASSIGNMENT 4

Assignment 4

The consumer credit act 2006

All across the globe, the legislative initiates tend to protect the end consumer through different legal proposals and amendments. These laws are intended to give a greater margin to the consumer while buying the product, and therefore, holding the other entities liable for the money they exchange. The consumer credit act 2006 is an initiate to empower the office of fair trading to propose and execute stringent laws for the protection of consumer. The office of the fair trading is supposed to monitor the status of credit given to the consumer in the market, it is with the office of fair trading under the consumer credit act to investigate the background and foreground of the consumers that are applying for the credit, to impose condition upon the licenses issued to the consumer for credit issuance, as well as, to impose penalties upon those who deviate from the normal market mechanics.

It deals with the credit lent to the consumer in shape of goods and services that are later to be paid for. However, there is a greater chance of misconduct that could be found out on the part of both of the parties, in the absence of lawn and legal initiates. The consumer protection legislations mainly correspond to the following areas;

Pre-contract information: it is essential for the consumer to be provided with adequate information.

Credit and hire agreements: to assess the contracts as per the legal compliance

Post-contractual information: to analyze that the communication after the contractual formalities is according to the law

Early settlements: to look for the legal compliance in case of early settlements

Exempt agreements: to know whether the agreement taking place is exempt by certain laws or not

Brokerage fees: another major initiate is to assess and account the brokerage fee charged is fair

Equal liability: in case of breach of contract, there has to be equal liability on either side

Credit advertising: in case of the credit advertising, the entire relevant information has to be revealed to the consumer

Miscellaneous: the other areas of the acts and legislations comprise of unenforceable credit agreements, unfair relationships and information sheet laws.

The consumer credit act has been proposed by the British parliament, so as to regulate the economy and avoid the credit hassle. The purpose of the consumer protection act to assure that the credit market does not lead to an economic collapse, and therefore, the process of ...