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Exempt agreements

The Consumer Credit Act 1974 regulates most consumer credit agreements and consumer hire agreements with individuals - defined as including sole traders and small partnerships.

The previous financial limit of £25,000 was removed for new agreements from 6 April 2008.

There are a number of exemptions from the 1974 Act. These are principally set out in section 16 of the Act, and sections 16A, 16B and 16C, and in the Consumer Credit (Exempt Agreements) Order 1989.

The exemptions were modified slightly as a result of implementation of the Consumer Credit Directive (CCD) from 1 February 2011.

Guidance on the current exemptions is set out in Consumer credit - regulated and exempt agreements (November 2010) - OFT140A (pdf 328kb).

Guidance on the position prior to the CCD changes is set out in Consumer credit - regulated and exempt agreements (December 2008) - OFT 140 (pdf 311kb).

A summary of the CCD changes is in chapter 4 of the BIS guidance on the implementing regulations (pdf).




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