New Consumer Credit Laws
Does your business offer credit to consumers? Many local businesses are authorised to provide credit by the Office of Fair Trading (“OFT”). On 31st October new rules on credit advertising came into force.
Marti Burgess, a solicitor in our Company Commercial Department, says: “The Consumer Credit Advertisements Regulations are part of the Department of Trade and Industry's reforms of the Consumer Credit Act 1974. They clarify what information should be included in different types of advertisement to enable consumers to compare products more effectively. For example, if an advert is aimed at non-status consumers (i.e. those consumers who would have difficulty in obtaining credit) it must show a typical APR. Similarly, adverts that claim more favourable terms, for example, “cheaper loans” or “lowest rates ever”, must include a typical APR. The new rules also require the typical APR shown to be of greater prominence than any other financial information in the advert. At least 66% of the credit agreements granted must be at or below the typical APR.
If you need any help on the new rules or any other issue of consumer credit law then contact Marti Burgess on (0117) 929 0451 or e-mail mburgess@metcalfes.co.uk for further information.
This press release summarises the law on issues which we believe may be of interest to your business. It is not a comprehensive review of the subjects and accordingly is published without responsibility for loss occasioned to any person(s) acting or refraining from action as a result of information published