Consumer Credit Act 2006 Essay
The Consumer Credit Act 2006 is an act of parliament which intends to increase consumer protection when they are borrowing money. This act requires businesses that lend money to customers or offer goods or services on credit to be licensed by the office of fair trading. Trading without a license is a crime and can result in a fine or even imprisonment. This act applies to businesses that may offer goods or services on credit or companies that lend money to consumers. The business must be licensed by the office of fair trading. The act also defends consumer rights when they purchase goods or services on credit. When lending money, companies must have interest rates clearly identified. JLR are subject to numerous laws and regulations that place limitations on the type of products and services they offer and how the business operates. For example one legal constraint that would affect JLR is the Data Protection Act (1998). This is aimed at market researchers collecting and holding personal data. They must ensure that the data they keep is kept secure, is only used for lawful purposes and only kept for as long as it is necessary. Also it must be made clear why all data is being collected and he approval of the persons involved must also be kept.
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Other legal constraints include:
Sale of goods act 1979- the law which says goods should be of satisfactory quality, fit for purpose and as described.
Under this legislation, goods bought from a trader should be: of satisfactory quality, as described, fit for purpose. For JLR this would mean that they have to ensure that they comply with this act in order to keep customer satisfaction. If they do not manage to do this, it may result in loss of customers and sales.
Consumer protection from unfair trading regulations 2008- the law which says all customers are entitled to fair treatment and honesty from the business. This means that JLR cannot use aggressive sales tactics or use dishonest sales
promotions.
This is an act that prohibits the misdescription of goods and services provided in trading; to prohibit false or misleading indications to the price of goods. It is an act of parliament which prevents manufacturers, retailers or service industry providers from misleading consumers as to what they are spending their money on. It is a law that can punish companies who make false claims about their products or services. Each product sold must be as described or satisfactory quality. ‘Fit for purpose’ also comes under this act and covers the obvious purpose of the item being sold.
This would affect JLR because it means that they will have to comply with this act and ensure that they are completely following the rules of the act in order to protect the customer and themselves. If they do not meet the required standards of this act and manage to break the rules such as making false claims about their products, the company can be punished according to the judiciary, (court of the UK).
Other legal constraints include:
Sale of goods act 1979- the law which says goods should be of satisfactory quality, fit for purpose and as described.
Under this legislation, goods bought from a trader should be: of satisfactory quality, as described, fit for purpose. For JLR this would mean that they have to ensure that they comply with this act in order to keep customer satisfaction. If they do not manage to do this, it may result in loss of customers and sales.
Consumer protection from unfair trading regulations 2008- the law which says all customers are entitled to fair treatment and honesty from the business. This means that JLR cannot use aggressive sales tactics or use dishonest sales
promotions.
This is an act that prohibits the misdescription of goods and services provided in trading; to prohibit false or misleading indications to the price of goods. It is an act of parliament which prevents manufacturers, retailers or service industry providers from misleading consumers as to what they are spending their money on. It is a law that can punish companies who make false claims about their products or services. Each product sold must be as described or satisfactory quality. ‘Fit for purpose’ also comes under this act and covers the obvious purpose of the item being sold.
This would affect JLR because it means that they will have to comply with this act and ensure that they are completely following the rules of the act in order to protect the customer and themselves. If they do not meet the required standards of this act and manage to break the rules such as making false claims about their products, the company can be punished according to the judiciary, (court of the UK).