Consumer Credit Act

An Act designed to protect consumers who enter into credit agreements such as personal loans, hire purchase and credit cards. It allows consumers to challenge unfair lending, and offers more effective options for resolving disputes. The Act also improves the regulation of consumer credit businesses and makes regulation more appropriate for different types of consumer credit transaction by extending protection to all consumer credit.

Any business that lends money or offer goods or services paid for by credit must be licensed by the Director General of Fair Trading. The Act also applies to brokers and those who offer credit or lend money directly to the public, along with anyone who runs a credit agency, hires out goods, provides debt counselling or collects debts.