Future changes to the Consumer Credit Act

HM Treasury will launch a consultation on the direction of the reform by the end of 2022.

The government plans to modernise the act by simplifying the 1974 Consumer Credit Act which regulates products such as personal loans including hire purchase and PCP agreements. By overhauling and simplifying the rules, it is said that this should in turn assist businesses to reduce costs but we will see if it achieves this aim once we understand the extent of the reforms and costs of implementation.

The consultation paper outlining the government’s proposal's is expected to be published by the end of the year and stakeholders view will be sought on the matter.

Auxillias will be watching how this unfolds and, having dealt with many CCA reform projects in the past, will be regularly providing insight on the changes proposed to its clients and community with specific guidance on the impact to their business based on their products and sector.