The Consumer Credit Act, established in 1974 in the United Kingdom, requires businesses that lend money or offer goods or services on credit to be licensed by the Office of Fair Trading.
The Consumer Credit Act protects the consumer when faulty goods — such as those damaged during shipment or that simply don't work properly — are purchased on credit. The credit card company shares responsibility for reimbursing the consumer's credit card for the full amount.
Under the act, if a consumer is turned down for a credit arrangement, he is entitled to a copy of his credit file. The individual has 28 days to submit a written request from the date of the application to the business from which he attempted to obtain credit. The establishment has seven days to respond, stating which consumer reporting company was used. The consumer can then contact the reporting agency to obtain the credit file.
The act provides a "cooling-off" period for some purchases, including life insurance, investments and loans. The provision gives consumers a certain time to cancel a purchase or agreement in certain circumstances.