This Act controls the way any business offers it's customers
credit agreements for purchasing goods.
The Act makes the following provisions:
In order to offer credit agreements, a business must obtain
a credit license from the Office of Fair Trading. By attaining this license
your business becomes a licensed credit broker.
If your business decides to offer credit, you are obliged to
inform the customer, all the details of the agreement.
You must ensure you display the interest rates to be charged
on any potential agreements.
Your customers should be given the exact details of any
purchase, in terms of the cash purchase price and how the credit price works
out, including any deposit, monthly costs, and what the final cost of credit
is.
If credit is given to a customer away from your normal
place of trading, then the customer has a cooling off period usually seven
days in which they are allowed to cancel the credit agreement. Most
companies offer a 14 day period. This clause was inserted to prevent
salesmen entering peoples houses and charging excessive amounts in credit
agreements.