The Consumer Credit Act (1974)

This is the law that governs personal loans and other credit agreements. It demands that:

  • full written details of the true interest rate (annual percentage rate) be quoted
  • a 'cooling-off' period be allowed during which borrowers may change their minds and cancel agreements
  • all agreements be in writing

The government department that oversees the loans and credit industry is:

The Office of Fair Trading

Telephone Enquiries : 08457 22 44 99
email : enquiries@oft.gsi.gov.uk
website : www.oft.gov.uk

You may find the information on the following web page useful and informative:
www.oft.gov.uk/Consumer/Money/before.htm