Consumer Credit Act 2006
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| Long title | An Act to amend the Consumer Credit Act 1974; to extend the ombudsman scheme under the Financial Services and Markets Act 2000 to cover licensees under the Consumer Credit Act 1974; and for connected purposes. |
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| Citation | 2006 c 14 |
| Dates | |
| Royal assent | 30 March 2006 |
| History of passage through Parliament | |
| Text of statute as originally enacted | |
| Revised text of statute as amended | |
The Consumer Credit Act 2006 (c 14) is an Act of the Parliament of the United Kingdom intended to increase consumer protection when borrowing money.
The main provisions of the Act are to extend the scope of the Consumer Credit Act 1974, to create an Ombudsman scheme, and to increase the powers of the Office of Fair Trading in relation to consumer credit. In addition, it permits borrowers to challenge unfair debtor-creditor relationships in court.
The 2006 Act brings two further types of agreement under the scope of the 1974 Act:
The 2006 Act gives consumers the option of using the Financial Ombudsman Service if they are unhappy with their lender's dispute resolution service, whether the lender consents or not. Complaints may also be raised against other types of credit related companies, such as debt-collection agencies.
The 2006 Act empowers the Office of Fair Trading (OFT) to investigate applicants for consumer credit licences, to impose conditions on licences, and to impose civil penalties of up to £50,000 on companies which fail to comply with its conditions, appeals from which lie to the First-tier Tribunal and £5,000 for individuals. (formerly the Consumer Credit Appeals Tribunal) and thence, with leave, to the Upper Tribunal.
The following orders have been made under section 71(2):
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