Strengths and Limitations of the United Kingdom’s Consumer Credit Act 1974

Summary:

The Consumer Credit Act 1974, a landmark legislation, has both strengths and limitations. Its key strengths include standardized credit agreements, creating a level playing field, and strong consumer protections, such as rights to early settlement and cancellation. However, its weaknesses include being outdated and struggling to adapt to online lending and fintech innovations, as well as creating regulatory overlap with other bodies, potentially leading to confusion. Overall, while the Act has some merits, its limitations are becoming increasingly evident as financial services evolve in complexity and reach.