What debts does the Consumer Credit Act cover?
Debts which are covered by the Consumer Credit Act are often called regulated debts.
This applies to most of the common household borrowing. In most cases, the following debt types will be regulated by the Consumer Credit Act:
Types of debt which are not regulated by the Consumer Credit Act include:
- Debts to individuals, such as family or friends
- Debts to unlicensed lenders or loan sharks
- Household bills, including gas, electric and water
- Debts to local or central Government, including council tax, benefit overpayments and taxes
- Some credit union loans
- Charge cards
- Some types of business debt
This is just a selection of common types of debt, and there are many more which can be regulated or unregulated. In some cases, a debt could be either depending on the date you took out the debt and the amount your borrowed.
In the past, some larger debts weren’t covered by the Consumer Credit Act. For example, before 2008, debts over £25,000 were not regulated.
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