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20 Cards in this Set
- Front
- Back
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What are the consumer credit acts? |
Consumer credit acts of 1974 and 2006. The 1974 act established the basic principles of consumer credit regulation. The 2006 consolidated expanded and updated the earlier act. |
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Consumer credit after 1974? |
It's purpose was to regulate, supervise and control certain types of lending to individuals and to provide protection for borrowers for unfair lending practices. There are a number of safeguards which the potential borrowers must be made aware of the nature and conditions of a loan. |
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What does the consumer credit act regulator limit up to? |
Not exceed in £25,000 |
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What is representative APR? |
An APR that applies to 51% or more of a successful applicants for the credit product. |
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What is credit Intermediary? |
Helps an individual obtain credit, EG by helping them complete a loan application, or find the lend off in the best rates or willing to lend to those with poor credit history. |
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What is exempt from consumer credit acts? |
A third advance for house repairs of £15,000. Deleted mortgages including further advances for any purpose or exempt from the The CCAs. Rather than lawns would be regulated under MCOB |
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How does providing an APR in relation to consumer credit help consumers? |
It allows consumers to compare products more accurately, as the APR includes not only the interest rates but also any fees and charges that might apply to the product. |
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Businesses are protected by the provisions of the consumer credits act. True or false? |
True. Partnerships, three partners or fewer and sole traders are covered by the CCAs as well as natural persons and unincorporated associations. |
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How long is a cooling off. For a customer once they have signed a consumer credit agreement? |
14 days from the conclusion of the agreement, or from the point the consumer receives the agreement if this is later. |
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If a lender rejects an application on the basis of information from a credit reference agency, what must the lender do? |
Advise the applicant of the reason for rejecting the application and provide details of the credit reference agency use. |
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A charity that provides debt counselling services must have full permission from the FCA. True or false? |
False full permission is required for debt console services that are carried out on an commercial basis |
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Interest rates provided in an advertisement for consumer credit must include what? |
A representative example that includes a representative APR. |
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Providers of consumer credit must check that the applicant can afford the repayment and must check the applicants. State this with a credit reference agency. True or false? |
True. These provisions are included and conc. 5 responsible lending |
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Which previously unregulated area of consumer credit now falls under the provisions of CONC 7 |
Debt collection and debt administration. |
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What restriction does the FCA has placed on high cost, short-term credit? |
Interest and fees cannot exceed 0.8 of the loan per day |
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When recommended a credit product to a customer, which of the following must the lender provide? |
An adequate explanation of the product. |
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The 2006 consumer credit act introduced an unfair relationship test, which enables borrower to challenge a credit agreement through what? |
Through the courts |
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For the purpose of the consumer credit act, a small partnership has how many partners? |
Three or fewer. |
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The annual percentage rate of charge applies to what? |
Mortgages only. |
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Joseph visited his local bank to discuss a car loan for £15,000 and signed an application form while talking to the advisor. What cooling off period applies to the agreement? |
None. A cooling off period doesn't apply because the agreement was signed on the lenders' premises. |
