The Consumer Credit Bill, which was hailed as the Government’s flagship consumer protection legislation, has been dropped because there is no time for it to be passed before the General Election on May 5.
The Bill represented a major shake-up of the consumer credit laws and was supposed to restrict the activities of rogue lenders by introducing fines and a tough new licensing regime.
The new law would have made it possible for borrowers to repay loans early without having to pay high charges for early repayment and improve the level of information provided to borrowers when taking out credit.
The Bill would also have made it possible for unfair practices and terms to be challenged and to introduce an independent ombudsman service. This would have allowed consumers to challenge their credit agreements without having to go to court.