The recently introduced 2006 Consumer Credit Act hopes to prevent lenders from leaving credit consumers out of pocket and unfairly facing serious debt management or debt management concerns.
And the new law has been hailed by the government as one of the most important measures introduced in the interest of credit consumers “for a generation”.
Furthermore, the government maintains that the act will “complement” the efforts being made throughout the UK to restrict the operations of loan sharks and what are termed “dodgy doorstep sellers”.
Consumer Minister Ian McCartney said: “The Consumer Credit Act beefs up protection for borrowers, especially those with debt problems.
“It helps them challenge unfairness and protects them from dishonest lenders who try to rip them off.”
Meanwhile, the government has recently introduced a number of measures designed to reduce the number of people in the UK facing debt management woes due to financial exclusion.