Part III Financial Sectors and Activities, 21 Consumer Credit

Abstract

This chapter focuses on the regulation of consumer credit in the UK. It first traces the history of the regulatory framework for moneylending, with particular emphasis on the Consumer Credit Act 1974 (CCA 1974) and the Financial Services Act 2012, the latter of which led to the transfer of consumer credit regulation to the Financial Conduct Authority (FCA). It explains how regulatory powers over consumer credit (and hire) activity came to be exercised by the FCA under the Financial Services and Markets Act 2000 (FSMA) and how consumer credit advertisements (and quotations) are regulated under the FSMA's ‘financial promotion’ regime. It also reviews the special terminology used by the CCA 1974 such as credit, consumer credit agreement, and running account credit. Finally, it examines regulated activities relating to consumer credit and special regulatory control applicable to consumer credit.