Consumer Credit Act 2006 Essay

The Consumer Credit Act 2006 is an act of parliament which intends to increase consumer protection when they are borrowing money. This act requires businesses that lend money to customers or offer goods or services on credit to be licensed by the office of fair trading. Trading without a license is a crime and can result in a fine or even imprisonment. This act applies to businesses that may offer goods or services on credit or companies that lend money to consumers. The business must be licensed by the office of fair trading. The act also defends consumer rights when they purchase goods or services on credit. When lending money, companies must have interest rates clearly identified. JLR are subject to numerous laws and regulations that place limitations on the type of products and services they offer and how the business operates. For example one legal constraint that would affect JLR is the Data Protection Act (1998). This is aimed at market researchers collecting and holding personal data. They must ensure that the data they keep is kept secure, is only used for lawful purposes and only kept for as long as it is necessary. Also it must be made clear why all data is being collected and he approval of the persons involved must also be kept.
Under this legislation, goods bought from a trader should be: of satisfactory quality, as described, fit for purpose. For JLR this would mean that they have to ensure that they comply with this act in order to keep customer satisfaction. If they do not manage to do this, it may result in loss of customers and sales.
Consumer protection from unfair trading regulations 2008- the law which says all customers are entitled to fair treatment and honesty from the business. This means that JLR cannot use aggressive sales tactics or use dishonest sales