Payment Options and Credit (Payment Options (Direct debit/standing order,…
Payment Options and Credit
Direct debit/standing order
Forms of Credit
Factors to consider when choosing credit.
Penalties for missing credit payments.
Consumer Credit Act Law
Monitors credit advertising including APR
Hire purchase must be written, include cash price, hire-purchase price, name address of all signatures, number of payments
Stipulates laws in relation to aspects of credit.
Credit intermediaries e.g. garages who provide hire purchase must not visit borrowers in their workplace.
Protects borrowers because:
Advantages of credit
Handy in emergencies
Eliminates carrying cash around.
Allows people to buy expensive items such as a new car, house.
Disadvantages of credit.
Goods can be repossessed.
Interest rates are high.
Encourages impulse buying