The Government's Consumer Credit Bill is to be re-introduced which will make it much easier for consumers to challenge unfair lending practices and loan agreements. It will give consumers better information about their credit accounts and improve powers for the Office of Fair Trading to take action against companies and impart financial penalties.
The Bill will benefit borrowers by creating a fairer, clearer and more competitive credit market with tighter regulation, greater protection and improved rights. It will also introduce a targeted licensing system, reducing the onus on reputable businesses and freeing up the Office of Fair Trading for more investigations into companies they believe are behaving dishonestly.
Our view
Clearer and fairer lending contracts is good news for the all.