The consumer credit act was created in 1974 and requires businesses that lend money to consumers, that sell products or services on credit or engage in certain credit activities to hold a license to carry out their business activities. This license should be obtained from the Office of Fair Trading. Businesses found to be operating without a license will be breaking the law and the individuals involved will therefore be subject to a fine and possible imprisonment. The act provides protection to individuals in certain cases.
People who enter into credit agreements may be protected if the amount of credit that has been supplied in less than