Anyone who offers credit (a creditor) must have a licence from the Office of Fair Trading.  They won't be able to legally enforce the terms of their credit agreements if they didn't have a licence at the time you signed the agreement.

Most credit agreements that consumers sign are 'regulated agreements' under the Consumer Credit Act.  This means that they must be in writing and also explain, among other things:

• the amount of money you are borrowing;
• the interest rate; and
• how long you will be paying the debt back.

Creditors who arrange credit using regulated agreements should not be able to use court action against you if you never signed such an agreement.  Creditors cannot start court action if they haven't given you an agreement to sign.  You can get advice on other details of the Consumer Credit Act from:

• an advisor or solicitor;
• the Office of Fair Trading; or
• the trading standards department at your Council

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last updated 16/08/07