Menu
28/01/2011
New Bill Of Sale Practice To Launch
The Government has announced today that the ‘Bills of Sale’ money lending industry will be working under a new Code of Practice.
Lenders will also provide customers with a plain English information sheet explaining how bills of sale work, and what the customer can expect from the lender.
A bill of sale is used to secure a loan on a consumer’s personal property, typically a car. Concerns were raised that this form of loan could lead to consumer harm. As a result, the Government consulted on whether any action was necessary.
Consumer Minister, Edward Davey, said: “It’s important that we clarify what’s involved in a bill of sale loan. There have been concerns in the past about how difficult they are to understand, so this Code of Practice and the plain English information sheet should provide more transparency on what a loan entails for both the lender and the consumer. I welcome the fact that the majority of the industry has already signed up to abide by this code.”
The Government felt that any ban could restrict consumer access to credit, reduce choice and push up prices. This could also potentially force some consumers into the hands of illegal lenders. It was also felt that it would be disproportionate to ban an industry because of a few rogue lenders.
Added consumer protections from the new Consumer Credit Act will come into force on 1 February 2011, and the OFT will monitor the industry under the Irresponsible Lending Guidance, which will have a positive impact on consumer rights for bills of sale loans.
(BMcN/GK)
Lenders will also provide customers with a plain English information sheet explaining how bills of sale work, and what the customer can expect from the lender.
A bill of sale is used to secure a loan on a consumer’s personal property, typically a car. Concerns were raised that this form of loan could lead to consumer harm. As a result, the Government consulted on whether any action was necessary.
Consumer Minister, Edward Davey, said: “It’s important that we clarify what’s involved in a bill of sale loan. There have been concerns in the past about how difficult they are to understand, so this Code of Practice and the plain English information sheet should provide more transparency on what a loan entails for both the lender and the consumer. I welcome the fact that the majority of the industry has already signed up to abide by this code.”
The Government felt that any ban could restrict consumer access to credit, reduce choice and push up prices. This could also potentially force some consumers into the hands of illegal lenders. It was also felt that it would be disproportionate to ban an industry because of a few rogue lenders.
Added consumer protections from the new Consumer Credit Act will come into force on 1 February 2011, and the OFT will monitor the industry under the Irresponsible Lending Guidance, which will have a positive impact on consumer rights for bills of sale loans.
(BMcN/GK)
Related UK National News Stories
Click here for the latest headlines.
19 May 2005
Consumer Credit Bill re-introduced to Parliament
The Consumer Credit Bill is being re-introduced into Parliament today, the government has announced. The Bill, which completed most of its stages in the last Parliament, aims to create a “fairer, clearer and more comeptitive credit market” by tighting regulations and giving borrowers better protection and improved rights.
Consumer Credit Bill re-introduced to Parliament
The Consumer Credit Bill is being re-introduced into Parliament today, the government has announced. The Bill, which completed most of its stages in the last Parliament, aims to create a “fairer, clearer and more comeptitive credit market” by tighting regulations and giving borrowers better protection and improved rights.
17 December 2004
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
01 September 2003
Mortgage lending on the rise despite concerns over consumer debt
Mortgage lending hit a record high in July, according to the latest figures from the Bank of England. A further cut in interest rates saw gross mortgage lending rise by £8.35bn - the highest since records began in April 1993.
Mortgage lending on the rise despite concerns over consumer debt
Mortgage lending hit a record high in July, according to the latest figures from the Bank of England. A further cut in interest rates saw gross mortgage lending rise by £8.35bn - the highest since records began in April 1993.
19 September 2011
New Bill Will Strengthen Consumer Rights
Edward Davey has today announced a new Consumer Bill of Rights, which will streamline confusing and overlapping legislation and regulation, and provide stronger consumer protection.
New Bill Will Strengthen Consumer Rights
Edward Davey has today announced a new Consumer Bill of Rights, which will streamline confusing and overlapping legislation and regulation, and provide stronger consumer protection.
24 February 2012
OFT Launches Payday Lending Review
The Office of Fair Trading (OFT) has today launched an extensive review of the payday lending sector. This is in part prompted by concerns that some payday lenders may be taking advantage of people in financial difficulty. The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending.
OFT Launches Payday Lending Review
The Office of Fair Trading (OFT) has today launched an extensive review of the payday lending sector. This is in part prompted by concerns that some payday lenders may be taking advantage of people in financial difficulty. The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending.
-
Northern Ireland WeatherThis Evening and Tonight:A fine end to the day with some evening sunshine. It remains mainly dry overnight with a touch of frost or fog patches possible in places. However, cloud is expected to increase towards dawn with the odd light shower. Minimum temperature 2 °C.
