Overview

ancillary credit business


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A business involved in credit brokerage, debt adjusting, debt counselling, debt collecting, debt administration, or the operation of a credit-reference agency (see credit rating). Credit brokerage includes the effecting of introductions of individuals wishing to obtain credit to persons carrying on a consumer-credit business. Debt adjusting is the process by which a third party negotiates terms for the discharge of a debt due under consumer-credit agreements or consumer-hire agreements with the creditor or owner on behalf of the debtor or hirer. The latter may also pay a third party to take over an obligation to discharge a debt or to undertake any similar activity concerned with its liquidation. Debt counselling is the giving of advice (other than by the original creditor and certain others) to debtors or hirers about the liquidation of debts due under consumer-credit agreements or consumer-hire agreements. A credit-reference agency collects information concerning the financial standing of individuals and supplies this information to those seeking it. Debt administration, which was legally recognized as a form of ancillary credit business in 2006, is the process in which an administrator is appointed to manage the property of a debtor, including his or her salary or wages. The debt administator may be appointed by court order (see administration order) or by a voluntary decision of the debtor. The Consumer Credit Act 1974 provides for the licensing of ancillary credit businesses and regulates their activities.

Credit brokerage includes the effecting of introductions of individuals wishing to obtain credit to persons carrying on a consumer-credit business.

Debt adjusting is the process by which a third party negotiates terms for the discharge of a debt due under consumer-credit agreements or consumer-hire agreements with the creditor or owner on behalf of the debtor or hirer. The latter may also pay a third party to take over an obligation to discharge a debt or to undertake any similar activity concerned with its liquidation.

Debt counselling is the giving of advice (other than by the original creditor and certain others) to debtors or hirers about the liquidation of debts due under consumer-credit agreements or consumer-hire agreements.

A credit-reference agency collects information concerning the financial standing of individuals and supplies this information to those seeking it.

Debt administration, which was legally recognized as a form of ancillary credit business in 2006, is the process in which an administrator is appointed to manage the property of a debtor, including his or her salary or wages. The debt administator may be appointed by court order (see administration order) or by a voluntary decision of the debtor.

Subjects: Financial Institutions and Services — Accounting.


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