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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.
Consumer Credit Act to protect debt-ridden
Parts of the new Consumer Credit Act came into effect over the weekend, which will allow borrowers to take complaints about licensed lenders to the Financial Ombudsman Service.
In what has been described as the "biggest shake-up" in consumer protection law in 30 years, the new regulation will allow consumers to challenge unfair credit arrangements in court.
The act will cover about 70 per cent of lending activity, ranging from car loans to store and credit cards.
Consumer minister Ian McCartney commented: "The Consumer Credit Act beefs up protection for borrowers, especially those with debt problems.
"It helps them challenge unfairness and protects them from dishonest lenders who try to rip them off."
Mr McCartney added that the act aims to protect consumers and will be fair to honest lenders, meaning that those "without scruples [will have] nowhere to hide".
The news follows comments from freeadvice.co.uk that bankruptcies in the UK have risen as a result of a relaxation in laws.
An
IVA is one method of tackling debts without carrying the stigma attached to bankruptcy.
Created on 11/04/2007 08:28:35
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