The Consumer Credit Act of 1974 was an Act that was passed by Parliament in the United Kingdom. What this particular Act did was rebuild and reorganize the way in which consumer credit was handled in the United Kingdom. The purpose of this was to provide consumers with more rights and to form a more organized way in which business and the consumption of goods was done. This was helpful in order to regulate business procedures and still benefit the customer.
There are a number of different regulations and stipulations through this particular Consumer Credit Act. Some of them were very specific conditions that needed to be followed in order for business to occur.
For example, if an individual made an agreement of purchase with a business and wanted to cancel this agreement, under the Consumer Credit Act 1974 the consumer has the ability to cancel the agreement as long as they did not sign a contract in the business or shop with whom they are working, or as long as they did not enter into an agreement over the phone. Essentially, they are allowed to initiate the cancellation of the agreement if it was on their terms and territory when they agreed to it.
For sellers, a cancellation could be done through a formal court order if the seller had started to pay off the sale. The Consumer Credit Act of 1974 had many other types of terms and conditions regarding the business of buying and selling goods. However, this Act was replaced and completely changed by the Consumer Credit Act of 2006.