Consumer Credit Act 1974: Regulates credit arrangements exceeding £140. While primarily focused on commercial lending, private loans may fall under its scope depending on the circumstances. Important for determining if the friendly loan requires regulation.
Law of Property Act 1925: Governs property rights and interests in England and Wales, including requirements for formal documentation when creating security interests in property such as vehicles.
Limitation Act 1980: Establishes statutory time limits for bringing legal claims, typically 6 years for contract claims. Important for defining the timeframe within which legal action can be taken for breach of contract.
Unfair Contract Terms Act 1977: While primarily focused on business contracts, provides important guidelines for ensuring terms are fair and reasonable, even in private arrangements between friends.
Bills of Sale Acts 1878 and 1882: Crucial legislation if the car is being used as security for the loan, including specific requirements for registering security interests in personal property.
Consumer Rights Act 2015: Though not directly applicable to private arrangements, provides useful guidelines for best practices in contractual relationships and consumer protection.
Financial Services and Markets Act 2000: Important for ensuring the private loan arrangement doesn't inadvertently fall within regulated financial activities requiring authorization.
Fraud Act 2006: Relevant for ensuring all parties make honest representations in the agreement and maintain transparency throughout the loan process.
