Prepare your BNPL business for FCA regulation
- 9 steps
UK Act of Parliament
1974
United Kingdom
Consumer Credit Act 1974
At a glance
Enforced by
What's here
53 compliance obligations, 23 practical guides across 2 topics · 5 journeys · 7 statutory instruments
Penalty landscape
10 of 53 obligations carry an unlimited fine. 5 carry different penalties and 38 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Trader 31
- Any Person 13
- Director or Officer 1
Plus 8 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Respond to FCA enforcement action or investigation
- 6 steps
Start offering consumer credit to customers
- 10 steps
Handle Section 75 claims from customers
- 5 steps
Consumer credit compliance quick-check
- 8 steps
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Direct — cites this Act
16 guidesBuy Now Pay Later regulation: what businesses need to know
Comply with credit advertising rules
Comply with credit broking rules
Comply with debt collection rules
Comply with high-cost short-term credit rules
Conduct and document affordability assessments for consumer credit
Consumer credit compliance checklist
Consumer credit rates and thresholds reference
Supporting — topic alignment
7 guidesMeet your office and business support regulatory duties
Meet your rental and leasing regulatory duties
Office and business support compliance checklist
Rental and leasing compliance checklist
Understand how the Consumer Duty applies to credit products
Which office and business support regulations apply to your business
Other Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Traders also bound by 219 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 952 duties
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 2013 39 duties
- TULRCA 1992 1992 39 duties
- Companies Act 2006 2006 39 duties
- The Customs (Import Duty) (EU Exit) Regulations 2018 2018 33 duties
Any Person also bound by 749 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 110 duties
- Licensing Act 2003 2003 105 duties
- Merchant Shipping Act 1995 1995 97 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 86 duties
Directors and Officers also bound by 224 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 75 duties
- Companies Act 2006 2006 63 duties
- Insolvency Act 1986 1986 46 duties
- CCBSA 2014 2014 22 duties
- CAICEA 2004 2004 18 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part I — OFFICE OF FAIR TRADING
Browse 8 other sections in this Part — procedural / definitional / commencement
General functions of OFT.
Powers of Secretary of State.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Dissemination of information and advice.
Annual and other reports.
Form etc. of applications.
Charge on applicants for licences etc.
Penalty for false information.
Part II — Credit Agreements, Hire Agreements and Linked Transactions
Browse 16 other sections in this Part — procedural / definitional / commencement
Consumer credit agreements.
Meaning of credit.
Running-account credit and fixed-sum credit.
Restricted-use credit and unrestricted-use credit.
Debtor-creditor supplier agreements.
Debtor-creditor agreements.
Credit-token agreements.
Consumer hire agreements.
Exempt agreements.
Exemption relating to high net worth debtors and hirers
Exemption relating to businesses
Exemption relating to investment properties
Small agreements.
Multiple agreements.
Linked transactions.
Total charge for credit
Part III — Licensing of Credit and Hire Businesses
Browse 50 other sections in this Part — procedural / definitional / commencement
Businesses needing a licence.
Standard and group licences.
Authorisation of specific activities.
Control of name of business.
Applications for standard licences
Licensee to be a fit person.
Guidance on fitness test
Conduct of business
Determination of applications.
Consumer credit EEA firms
Exclusion from group licence.
Charges to be paid by licensees etc. before end of payment periods
Extension of period to pay charge under s. 28A
Failure to pay charge under s. 28A
Renewal.
Variation by request.
Compulsory variation.
...revocation.
Power to suspend licence
Duration of suspension
Application to end suspension.
Power of OFT to impose requirements on licensees
Power of OFT to impose requirements on supervisory bodies
Supplementary provision relating to requirements
Procedure in relation to requirements
Guidance on requirements
Representations to OFT.
Winding-up of standard licensee's business
Representations to OFT: suspension under section 32A
The register.
Duty to notify changes.
Further duties to notify changes etc.
Power of OFT to require information generally
Power of OFT to require access to premises
Entry to premises under warrant
Failure to comply with information requirement
Officers of enforcement authorities other than OFT
Death, bankruptcy etc. of licensee.
Application of s. 37 to Scotland and Northern Ireland.
Offences against Part III.
Power of OFT to impose civil penalties
Further provision relating to civil penalties
Statement of policy in relation to civil penalties
Enforcement of agreements made by unlicensed trader.
The Consumer Credit Appeals Tribunal
Appeals to First-tier Tribunal under Part III.
Appeals from the Consumer Credit Appeals Tribunal
Tribunal Procedure Rules: suspension of OFT determinations
Disposal of appeals
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Part IV — Seeking Business
Prohibition of canvassing debtor-creditor agreements off trade premises.
2 years imprisonment- Illegal canvassing of credit agreements off trade premises Any Person
Circulars to minors.
Unlimited fine- Sending credit or hire advertisements to minors Any Person
Browse 12 other sections in this Part — procedural / definitional / commencement
Advertisements to which Part IV applies.
Form and content of advertisements.
Prohibition of advertisement where goods etc. not sold for cash.
False or misleading advertisements.
Advertising infringements.
Definition of canvassing off trade premises (regulated agreements).
Prohibition of unsolicited credit-tokens.
Restrictions on provision of credit card cheques
Section 51A: exemption for business
Quotations.
Duty to display information.
Conduct of business regulations.
Part V — Entry into Credit or Hire Agreements
Disclosure of information.
- Provide required information to customers before signing credit agreements Trader
Withdrawal from prospective agreement.
- Treat a customer's withdrawal from a credit application as a formal cancellation Trader
Agreement to enter future agreement void.
- Do not use contracts that force customers into future credit agreements Trader
Form and content of agreements.
Other duties (1) — Crown / regulator
- The Treasury must set rules for the form and content of credit agreements Crown / Minister / Government department
Duty to supply copy of overdraft agreement
- Provide a copy of the overdraft agreement to the customer Trader
Duty to supply copy of unexecuted agreement : excluded agreements.
- Provide a copy of the credit agreement to the customer for signature Trader
Duty to supply copy of executed agreement : excluded agreements.
- Provide customers with a copy of their signed credit agreement Trader
Duty to give notice of cancellation rights.
- Provide formal notice of cancellation rights to customers Trader
Acceptance of credit-tokens.
- Ensure credit tokens are accepted before charging customers Trader
Cancellation: repayment of credit.
- Calculate and request repayment of credit following cancellation Trader
Browse 16 other sections in this Part — procedural / definitional / commencement
Pre-contractual explanations etc
Assessment of creditworthiness
Copy of draft consumer credit agreement
Antecedent negotiations.
Opportunity for withdrawal from prospective land mortgage.
Signing of agreement.
Duty to supply copy of executed consumer credit agreement
Consequences of improper execution.
Withdrawal from consumer credit agreement
Cancellable agreements.
Cooling-off period.
Notice of cancellation.
Cancellation: recovery of money paid by debtor or hirer.
Cancellation: return of goods.
Cancellation: goods given in part-exchange.
Exclusion of certain agreements from Part V.
Part VA — CURRENT ACCOUNT OVERDRAFTS
Browse 2 other sections in this Part — procedural / definitional / commencement
Information to be provided on a current account agreement
Information to be provided on significant overdrawing without prior arrangement
Part VI — Matters Arising During Currency of Credit or Hire Agreements
Debtor or hirer to give information about goods.
Unlimited fine- Fail to disclose the location of hired or financed goods Any Person
FCA to prepare information sheets on arrears and default
Other duties (1) — Crown / regulator
- FCA must provide information sheets for customers in arrears or default Statutory regulator
Notice of sums in arrears under running-account credit agreements
- Send a notice and information sheet when a credit account falls into arrears Trader
Failure to give notice of sums in arrears
- Send arrears notices to avoid losing the right to interest and enforcement Trader
Interest on default sums
- Use only simple interest on default charges Trader
Browse 18 other sections in this Part — procedural / definitional / commencement
Liability of creditor for breaches by supplier.
Further provision for liability of creditor for breaches by supplier
Duty to give notice before taking certain action.
Duty to give information to debtor under fixed-sum credit agreement.
Statements to be provided in relation to fixed-sum credit agreements
Fixed-sum credit agreement: statement of account to be provided on request
Duty to give information to debtor under running-account credit agreement.
Duty to give information to debtor on change of rate of interest
Duty to give hirer information.
Appropriation of payments.
Variation of agreements.
Assignment of rights
Liability for misuse of credit facilities.
Misuse of credit-tokens.
Duty on issue of new credit-tokens.
Death of debtor or hirer.
Notice of sums in arrears under fixed-sum credit agreements etc.
Notice of default sums
Part VII — Default and Termination
Compliance with default notice.
- Remedy a credit agreement breach to avoid legal consequences Trader
Consequences of breach of s. 90.
- Return protected goods only through a court order Trader
Recovery of possession of goods or land.
- Obtain a court order before repossessing goods or land Trader
Interest not to be increased on default.
- Do not increase interest rates when a customer defaults Trader
Right to complete payments ahead of time.
- Allow customers to settle credit agreements early Trader
Rebate on early settlement.
Other duties (1) — Crown / regulator
- CROWN must make regulations for rebates on early credit settlement Crown / Minister / Government department
Compensatory amount
- Limit compensation charges for early repayment of fixed-rate loans Trader
Liability of debtor on termination of hire-purchase etc. agreement.
- Calculate and collect final payments on terminated hire-purchase agreements Trader
Right to terminate hire agreement.
Amended 8 timesAgency for receiving notice of rescission.
Amended 1 time- Accept rescission notices via brokers or agents Trader
Termination statements.
Amended 3 timesBrowse 12 other sections in this Part — procedural / definitional / commencement
Need for default notice.
Contents and effect of default notice.
Retaking of protected hire-purchase etc. goods.
Summary diligence not competent in Scotland.
Compensatory amount: green deal finance
Effect on linked transactions.
Duty to give information.
Duty to give information on partial repayment
Duty to give notice of termination (non-default cases).
Termination etc of open-end consumer credit agreements
Right to terminate hire-purchase etc. agreements.
Goods not to be treated as subject to landlord’s hypothec in Scotland.
Part VIII — Security
Ineffective securities.
- Manage and return property related to ineffective securities Trader
Duty to give information to surety under fixed-sum credit agreement.
Amended 2 timesDuty to give information to surety under running-account credit agreement.
Amended 2 timesDuty to give information to surety under consumer hire agreement.
Amended 2 timesDuty to give information to debtor or hirer.
Amended 3 timesDuty to give surety copy of default etc. notice.
- Send copy of default or termination notices to any guarantors Trader
Realisation of securities.
Amended 1 timeAct not to be evaded by use of security.
Amended 3 times- Do not use security to bypass consumer credit protections Trader
Pawn-receipts.
Unlimited fine Amended 1 time- Unlawfully taking a pawn from a minor Any Person
Penalty for failure to supply copies of pledge agreement, etc.
Amended 1 time- Fail to provide copies of a pawn (pledge) agreement or receipt Any Person
Loss etc. of pawn-receipt.
Amended 1 time- Accept alternative documents if a pawn-receipt is lost Trader
Unreasonable refusal to deliver pawn.
Unlimited fine Amended 2 times- Unreasonably refuse to return pawned goods Any Person
Consequence of failure to redeem.
Amended 2 times- Transfer of ownership or right to sell unredeemed pawns Trader
Restrictions on taking and negotiating instruments.
Amended 1 timeConsequences of breach of s. 123.
- Obtain a court order to enforce credit agreements after a legal breach Trader
Enforcement of land mortgages.
Amended 4 timesBrowse 6 other sections in this Part — procedural / definitional / commencement
Form and content of securities.
Redemption period.
Redemption procedure.
Realisation of pawn.
Order in Scotland to deliver pawn.
Holders in due course.
Part IX — Judicial Control
Enforcement orders in cases of infringement.
Amended 4 timesEnforcement orders on death of debtor or hirer.
Other duties (1) — Crown / regulator
- Courts must only enforce credit agreements after death if debt is at risk Tribunal / Court
Time orders.
Amended 3 timesOther duties (1) — Crown / regulator
- Courts may issue time orders to reschedule debt or hire payments Tribunal / Court
Debtor or hirer to give notice of intent etc. to creditor or owner
Amended 3 times- Give 14 days' notice before applying for a court Time Order Trader
Evidence of adverse detention in hire-purchase etc. cases.
- Establish legal possession of goods when a customer refuses to return them Trader
Power to vary agreements and securities.
Amended 1 timeExtortionate credit bargains.
Amended 1 timeJurisdiction of county court in Northern Ireland.
Amended 3 timesBrowse 16 other sections in this Part — procedural / definitional / commencement
Supplemental provisions about time orders.
Interest payable on judgment debts etc.
Protection orders.
Financial relief for hirer.
Hire-purchase etc. agreements: special powers of court.
Power to impose conditions, or suspend operation of order.
When bargains are extortionate.
Reopening of extortionate agreements.
Interpretation of sections 137 to 139.
Unfair relationships between creditors and debtors
Powers of court in relation to unfair relationships
Interpretation of ss. 140A and 140B
Advice and information
Jurisdiction and parties.
Power to declare rights of parties.
Appeal from county court in Northern Ireland.
Part X — Ancillary Credit Businesses
Types of ancillary credit business.
Amended 14 timesExceptions from section 145.
Amended 12 timesApplication of Part III.
Amended 4 timesAgreement for services of unlicensed trader.
Amended 7 timesRegulated agreements made on introductions by unlicensed credit-broker.
Amended 7 timesAppeals to Secretary of State against licensing decisions.
Amended 1 timeAdvertisements.
Amended 6 timesApplication of sections 52 to 54 to credit brokerage etc.
Amended 1 timeProhibition of canvassing certain ancillary credit services off trade premises.
2 years imprisonment Amended 1 time- Illegal canvassing of credit and debt services Any Person
Right to recover brokerage fees.
Amended 7 timesEntry into agreements.
Amended 1 timeDuty to disclose name etc. of agency.
Unlimited fine Amended 10 times- Failure to disclose credit reference agency details Any Person
Duty of agency to disclose filed information.
Unlimited fine Amended 7 times- Fail to provide a copy of a credit file upon request Any Person
Correction of wrong information.
Unlimited fine Amended 13 times- Fail to comply with an order to correct credit files Any Person
Alternative procedure for business consumers.
Unlimited fine Amended 8 times- Fail to follow alternative disclosure rules for business credit files Any Person
Credit intermediaries
Amended 8 timesBrowse 1 other section in this Part — procedural / definitional / commencement
Part XI — Enforcement of Act
Enforcement authorities.
Amended 7 timesOther duties (1) — Crown / regulator
- Weights and measures authorities must report to the FCA on request Local authority
Powers of entry and inspection.
Amended 16 timesCompensation for loss.
Amended 3 timesPower to make test purchases etc.
Amended 2 timesObstruction of authorised officers.
Amended 5 timesNotification of convictions and judgments to FCA.
Amended 4 timesOther duties (1) — Crown / regulator
- Courts may notify the FCA of business-related convictions or judgments Tribunal / Court
Penalties.
Amended 5 timesDefences.
- Notify the prosecutor if you rely on a third party for your legal defence Any Person
Offences by bodies corporate.
2 years imprisonment- Personal liability of officers for business credit offences Director or Officer
No further sanctions for breach of Act.
Amended 3 timesOther duties (1) — Crown / regulator
- FCA may consider any breach when exercising its regulatory functions Statutory regulator
Onus of proof in various proceedings.
Amended 2 timesStatements by creditor or owner to be binding.
- Ensure statements and balance notices provided to customers are accurate Trader
Contracting-out forbidden.
Amended 3 timesPart XII — Supplemental
Restrictions on disclosure of information.
Amended 12 timesPowers to require provision of information or documents etc.
Amended 12 timesDuty of persons deemed to be agents.
Unlimited fine- Pass on payments and notices received as an agent immediately Trader
Service of documents.
Amended 2 timesElectronic transmission of documents
Amended 2 timesSaving for registered charges.
Amended 4 timesLocal Acts.
Amended 1 timePower to prescribe form etc. of copies.
Amended 1 timePower to alter monetary limits etc.
Amended 11 timesRegulations and orders.
Amended 10 timesDeterminations etc. by FCA.
Amended 4 timesAssociates.
Amended 6 timesAgreement with more than one debtor or hirer.
Amended 6 timesAgreement with more than one creditor or owner.
Unlimited fine- Interact with any co-owner or co-creditor to fulfill legal requirements Trader
Examples of use of new terminology.
Amended 1 timeDefinitions.
Amended 57 timesMeaning of “consumer credit EEA firm ”
Amended 57 timesGreen deal plans
Amended 57 timesSection 189B: supplementary provision
Amended 57 timesSection 189B: temporary provision
Amended 57 timesFinancial provisions.
Amended 2 timesSpecial provisions as to Northern Ireland.
Amended 5 timesBrowse 5 other sections in this Part — procedural / definitional / commencement
Power to prescribe form etc. of secondary documents.
Arrangements between creditor and supplier.
Definition of ‘default sum’
Transitional and commencement provisions, amendments and repeals.
Short title and extent.
Schedules
Prosecution and Punishment of Offences
1 year imprisonment- Unlawfully solicit credit agreements away from business premises Any Person
Browse 5 other Schedules — structural / supplementary
Examples of Use of New Terminology
MEANING OF “DEBTOR” IN RELATION TO GREEN DEAL AGREEMENTS
Transitional and Commencement Provisions
MINOR AND CONSEQUENTIAL AMENDMENTS
Repeals
Other sections — not classified into a Part
These sections exist in the Act but the contents-of-Parts walker did not place them under a Part. Likely amendments or sections inserted out of the original Part structure.
Browse 1 other unclassified section
The Consumer Credit Appeals Tribunal
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- Ofcom: tackling abandoned and silent calls (opens in a new tab) from Ofcom Detailed Guidance
- FCA: consumer credit authorisation (opens in a new tab) from FCA Detailed Guidance
- FOS guidance on Section 75 claims (opens in a new tab) Detailed Guidance
- Financial Ombudsman Service: complaint limits and fees (opens in a new tab) Detailed Guidance
- FCA: Fee calculator (opens in a new tab) from FCA Detailed Guidance
- FCA: Motor finance review (opens in a new tab) from FCA Detailed Guidance
- FG22/5 - Consumer Duty finalised non-handbook guidance (opens in a new tab) from FCA Detailed Guidance
- FOS complaints data (opens in a new tab) Detailed Guidance
- HM Treasury: Regulation of Buy Now Pay Later (opens in a new tab) Detailed Guidance
- FCA: Deferred Payment Credit - information for firms (opens in a new tab) from FCA Detailed Guidance
- ... and 43 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
Financial Conduct Authority
Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …
Connected legislation
7 statutory instruments
These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.
Secondary legislation (7)
- Consumer Credit (Advertisements) Regulations 2010 2010
- Consumer Credit (Agreements) Regulations 2010 2010
- Consumer Credit (Disclosure of Information) Regulations 2010 2010
- Consumer Credit (Early Settlement) Regulations 2004 2004
- Consumer Credit (Total Charge for Credit) Regulations 2010 2010
- The Consumer Credit Act 1974 (Green Deal) (Amendment) Order 2014 2014
- The Consumer Credit (Information Requirements and Duration of Licences and Charges) (Amendment) Regulations 2014 2014
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Browse legislation
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Regulators
Learn more about the bodies that enforce this legislation.