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<p>The Consumer Credit Act 1974 (CCA) forms a key part of the regulation of the consumer
credit market. Under the CCA’s pre-contractual requirements, firms are required to
state clearly the actual (rather than representative) APR in credit agreements.</p><p>
</p><p>The Financial Conduct Authority (FCA) has a range of supervisory tools to identify
non-compliance with relevant rules, including proactive assessments, responding to
reports and complaints, and conducting thematic reviews of particular sectors. As
an independent regulator, it is for the FCA to make decisions on how it supervises
firms and enforces its rules.</p><p> </p><p>More broadly, the government is committed
to working with the FCA to deliver a well-functioning and sustainable consumer credit
market which meets consumers’ needs. As part of this, the government is reforming
the CCA. Working closely with the FCA, it will be considering how reform can enhance
consumer understanding of credit products and credit agreements, leading to improved
customer outcomes.</p>
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