Consumer hire agreements have become a common way for people to acquire goods and services without committing to long-term commitments. This is particularly popular among individuals who cannot afford to buy a product outright but can afford to rent it over a specific period.

However, with the popularity of consumer hire agreements comes the question of legality when it comes to advertising such agreements. The short answer to this question is that it is not illegal to advertise consumer hire agreements, as long as the advertisement adheres to specific legal requirements.

Consumer hire agreements are classified as regulated agreements, which means that they are subject to the Consumer Credit Act 1974. The act specifies several requirements that must be met when advertising regulated agreements, including consumer hire agreements.

One of the primary requirements is that the advertising must disclose the Annual Percentage Rate (APR) that applies to the consumer hire agreement. The APR is the interest rate that applies to the agreement, and the advertisement must make it clear to the consumer what the rate is and how it will be calculated.

Another requirement is that the advertising must contain a statement explaining that the consumer hire agreement is subject to the Consumer Credit Act 1974. The statement must be clear and prominently displayed so that the consumer is aware of their legal rights and protections.

The advertising must also contain clear and concise information about the goods or services being offered, including the term of the agreement, the rental amount, and any deposit or other fees required.

Failure to follow these requirements can result in legal action being taken against the advertiser, including fines and other penalties. It is, therefore, essential that advertisers of consumer hire agreements familiarise themselves with the relevant legal requirements.

In conclusion, advertising consumer hire agreements is not illegal, but it is subject to the Consumer Credit Act 1974, which specifies certain legal requirements that must be adhered to. Advertisers must ensure that they include all necessary information and that the advertisement is clear and transparent to the consumer so that they can make informed decisions about their financial commitments.