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 08 August 2007
Confident Consumers - A Fair Deal creating Prosperity & Success for All
 
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Credit and Over-indebtedness

Following publication in 2003 of a White Paper - "Fair, Clear and Competitive - The Consumer Credit Market in the 21st Century", a fundemental review of the Consumer Credit Act took place and some changes have already been initiated.

A new Consumer Credit Bill was introduced into parliament in May 2005 and received Royal Assent in March 2006. The Department is now working on implementation of the Consumer Credit Act 2006.

The current Act (Consumer Credit Act 1974) regulates consumer credit and consumer hire agreements for amounts up to £25,000. The Act implements the European Directive on Consumer Credit, and this Directive is also under review.

Over-indebtedness

The term over-indebtedness is used to describe debt which has become a major burden for the borrower.

The Government is commited to reducing the social exclusion, financial exclusion and poverty that problem debt can cause and which can contribute to over-indebtedness.

Use to menu on the left or the links on the right to find pages dealing with other aspects of consumer finances.

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