As a provider of consumer finance, Buy As You View operates in accordance with the requirements of key legislation, namely:
- The Consumer Credit Act 1974
- The Financial Services and Markets Act 2000
- The Consumer Rights Act 2015
- The Data Protection Act 1998
The Consumer Rights Act 2015 provides that in a hire purchase agreement there are implied conditions, including that: the goods will meet their description; and the goods will be of satisfactory quality.
The most fundamental application of the Consumer Rights Act 2015 is that we must provide our customers with goods of satisfactory quality that are fit for the purpose they have been purchased for.
From the 1st April 2014, the responsibility for regulating consumer credit passed from the Office Of Fair Trading (OFT) to the Financial Conduct Authority (FCA). Businesses who wish to engage in consumer credit activities must now be authorised by the FCA.
As a firm regulated by the FCA, Buy as You View must comply with rules and guidance sets out in the FCA Handbook. This includes adhering to their Principles for Business including the requirement to treat customers fairly. We must also meet specific rules about conduct applying to consumer credit businesses in their Consumer Credit Sourcebook, knows as CONC.
The Consumer Credit Act 1974 and CONC regulates consumer credit and hire agreements. Its protections apply to agreements between traders and individuals, sole traders, partnerships and unincorporated associations, but not agreements made between traders and corporate bodies such as limited companies.
This Consumer Credit Act and CONC lays down rules regarding:
- The form and content of agreements and credit advertising
- The giving of pre-contract information and explanations to help customers make up their mind about whether the credit is right for them
- The method of calculating the Annual Percentage Rate (APR) of the Total Charge for Credit
- Rules around responsible lending and assessing customers’ affordability to repay loans
- The procedures to be adopted in the event of default, termination or early settlement