This Act matters if a business offers credit, instalments, hire arrangements or credit-broker introductions. Even businesses that do not think of themselves as finance businesses can create credit risk through payment plans, deferred payment offers or finance partner journeys.
Main laws
United Kingdom Act
Consumer Credit Act 1974
The Consumer Credit Act 1974 remains important for UK consumer credit, hire and regulated credit documentation.
In forceUnited KingdomPlain-English guide4 practical checks
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- This Act matters if a business offers credit, instalments, hire arrangements or credit-broker introductions.
- Even businesses that do not think of themselves as finance businesses can create credit risk through payment plans, deferred payment offers or finance partner journeys.
Likely relevant if
- Businesses offering payment plans
- Retailers and ecommerce stores using finance partners
- Credit brokers and introducers
Check first
- Check whether the product or customer journey is regulated credit
- Use compliant pre-contract information and agreements where required
- Review financial promotion and credit-broking wording
What this means in practice
Key points
- Buy-now-pay-later and instalment journeys should be legally mapped before launch.
- Finance partner terms do not remove all risk from the merchant journey.
- Customer-facing credit language needs careful approval.
When this law usually matters
Most businesses do not need to memorise the whole law. The useful starting point is to know when it is likely to affect a contract, customer journey, employee process, data flow or company decision.
Key points
- Businesses offering payment plans
- Retailers and ecommerce stores using finance partners
- Credit brokers and introducers
- Businesses hiring goods to consumers
What to check first
Sense check
- Check whether the product or customer journey is regulated credit
- Use compliant pre-contract information and agreements where required
- Review financial promotion and credit-broking wording
- Coordinate responsibilities with finance partners
Documents and workflows to review
Key points
- Payment plan terms
- Finance partner agreement
- Checkout finance wording
- Credit-broking notices
- Customer complaint process