FLA Seminar on the 2006 Consumer Credit Act

Recently, a seminar in London began examining the effects of the 2006 Consumer Credit Act.  With close to 100 delegates attending the seminar, topics ranged from OFT’s role in responsible lending to The European Directive on Consumer Credit.

This new Act will basically streamline the system by creating a connected network that would allow lenders to easily share data, and communicate with consumers who may be having issues. 

Also, the Act allows the OFT to start a licensing system that empowers the OFT to cut down on irresponsible traders.  The OFT would have the power to revoke the licenses of a trader in certain circumstance.  Woolley however, Head of Credit Reform and Policy in the Consumer Regulation and Enforcement Division of the OFT, stressed that revoking the license would not be the first step, the OFT would try other ways first— but with the new Act if those tries are unsuccessful, the OFT has the power to affect change.

More discussion are in the plans for the coming months, then the Act will be implemented in stages, with the Act completed in October, 2008. ■