Consumer Credit Act 2006 - wikipedia Consumer Credit Act 2006 The Consumer Credit Act 2006 Parliament of the United Kingdom Long title An Act to amend the Consumer Credit Act 1974 ; to extend the ombudsman scheme under the Financial Services and Markets Act 2000 to cover licensees under the Consumer Credit Act 1974 ; and for connected purposes. Citation 2006 c 14 Dates Royal assent 30 March 2006 History of passage through Parliament Text of statute as originally enacted Revised text of statute as amended The Consumer Credit Act 2006 ( c 14 ) is an Act of the Parliament of the United Kingdom intended to increase consumer protection when borrowing money. Contents 1 Provisions 2 Consumer Credit Act 1974 3 Ombudsman scheme 4 Office of Fair Trading 5 Section 71 - Short title, commencement and extent 6 See also 7 References 8 External links 8.1 UK Legislation Provisions The main provisions of the Act are to extend the scope of the Consumer Credit Act 1974, to create an Ombudsman scheme, and to increase the powers of the Office of Fair Trading in relation to consumer credit. In addition, it permits borrowers to challenge unfair debtor - creditor relationships in court. Consumer Credit Act 1974 The 2006 Act brings two further types of agreement under the scope of the 1974 Act : Consumer agreements above £ 25,000, to reflect growing levels of consumer borrowing and debt ; In section 1, to include small, one - man businesses and partnerships of up to three people. Ombudsman scheme The 2006 Act gives consumers the option of using the Financial Ombudsman Service if they are unhappy with their lender 's dispute resolution service, whether the lender consents or not. Complaints may also be raised against other types of credit related companies, such as debt - collection agencies. Office of Fair Trading The 2006 Act empowers the Office of Fair Trading ( OFT ) to investigate applicants for consumer credit licences, to impose conditions on licences, and to impose civil penalties of up to £ 50,000 on companies which fail to comply with its conditions, appeals from which lie to the First - tier Tribunal and £ 5,000 for individuals. ( formerly the Consumer Credit Appeals Tribunal ) and thence, with leave, to the Upper Tribunal. Section 71 - short title, Commencement and extent The following orders have been made under section 71 ( 2 ) : The Consumer Credit Act 2006 ( Commencement No. 1 ) Order 2006 ( S.I. 2006 / 1508 ( C. 52 ) ) The Consumer Credit Act 2006 ( Commencement No. 2 and Transitional Provisions and Savings ) Order 2007 ( S.I. 2007 / 123 ( C. 6 ) ) The Consumer Credit Act 2006 ( Commencement No. 2 and Transitional Provisions and Savings ) ( Amendment ) Order 2007 ( S.I. 2007 / 387 ( C. 14 ) ) The Consumer Credit Act 2006 ( Commencement No. 3 ) Order 2007 ( S.I. 2007 / 3300 ( C. 136 ) ) The Consumer Credit Act 2006 ( Commencement No. 4 and Transitional Provisions ) Order 2008 ( S.I. 2008 / 831 ( C. 40 ) ) The Consumer Credit Act 2006 ( Commencement No. 4 and Transitional Provisions ) ( Amendment ) Order 2008 ( S.I. 2008 / 2444 ( C. 105 ) ) See also Credit risk Trade Practices Act 1974 ( Australia ) Halsbury 's Statutes References Jump up ^ The citation of this Act by this short title is authorised by section 71 ( 1 ) of this Act. Jump up ^ `` Unfair Relationships under the Consumer Credit Act 2006 ''. The Payday Review. 28 February 2013. Archived from the original on 30 March 2013. Retrieved 2 March 2013. External links Times Online article about the Act Uk legislation Text of the Consumer Credit Act 2006 as in force today ( including any amendments ) within the United Kingdom, from legislation.gov.uk Explanatory notes to the Consumer Credit Act 2006. 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Question: what does the consumer credit act 2006 do
Answer: extend the scope of the Consumer Credit Act 1974