Consumer Credit Act

Consumer Credit Act

This site provides everything you need to know about the Consumer Credit Act 1974.

Types of Credit Agreement

The 1974 CCA (Consumer Credit Act) is complicated. Getting to grips with it is not easy, complicated by all the recent revisions and updates that have been made. Nevertheless, these updates have improved consumer rights. In this article, we will explore the basics of the act including consumer rights, creditor obligations and what to expect when you are behind with payments or cannot pay. The first thing to do is to understand the kind of agreement that you have and how the contract was made. Credit Agreement Types

Joint Liability

One of the best things about the Consumer Credit Act from a consumer's perspective is Section 75. Under this section of the act credit providers are jointly and severally liable for any misrepresentation or breach of contract by the supplier of the services or goods financed by the credit. It is important to note that only partial payment with credit is required for the finance company to be liable. Section 75

Ending a Credit Agreement

The CCA (Consumer Credit Act) ensures that consumers have the right to pay off a loan before the end of the agreement by paying off the outstanding sum and giving notice to the lender. New rules prescribe how the outstanding loan amount should be calculated, so that consumers are not taken advantage of by lenders. Moreover, borrowers are able to exercise their rights to claim back the charges for the credit once taxes, duties and charges have been deducted. This is all stated in the CCA 1974. Terminating Credit Agreements