Rules in consumer credit protection 1974-2003

In 1974 the government decided to release an Act that regulated consumer credit agreements for up to ₤25,000. The Act covered rules that directly applied to the content of the agreements, credit advertising, the method of calculating the Annual Percentage Rate (APR), early settlement procedures and overpriced credit offers. To create a fairer, more competitive market the Consumer Credit Act of 1974 was reviewed in 2003.
The reforms included in the DTI White Paper of 2003 intended to provide pre and post-contractual information and agreements in a clear and transparent way that includes information specific to:

• APR and relevant costs
  
• Frequency and total number of repayments
  
• Warnings and specifications in the case of secured loans
  
• Examples of early repayment costs
  
• Allow the Office of Fair Trade to fine lenders and conduct raids
  
• Set out fairer laws for borrowers who aim to pay back earlier their loans
  
• Require a single set of assumptions when calculating the APR and force lenders to provide standard information in their advertising