Consumer Credit Act of 1974
In the UK, personal loans are governed by this act. It has regulations on how money is lent and covers unsecured loans (known as regulated loans) to up to £25,000. Among the rules and regulations are that all agreements must be in writing and that borrowers can have a cooling off period where they can change their minds and cancel agreements.When you take out a personal loan, you will have to sign a credit agreement and be bound by its terms. If you favor extra protection in case you run into illness, accidents, or unemployment and can't cover your repayments, then consider payment protection insurance. This can be beneficial although it can be costly as well. Always check what an insurance policy includes and excludes.