The Consumer Credit Act
Advice
What the Consumer Credit Act 1974 does not cover?
The Act regulates consumer credit and ensures lenders provide customers with the following information before they enter into a credit agreement
- Content and Form of the credit agreement;
- Method of calculating annualised percentage rate (APR);
- Procedures relating to events of default, termination and early settlement; and
- Section 75 of the Act protects you for credit card purchases between £100 and £30,000.
What the Act does not cover?
The Act does not cover ‘unregulated’ debts such as:
- Certain types of business debts;
- Debts to individuals such as mortgages, charge cards, household utility bills;
- Debts to unlicensed lenders such as loan sharks; and
- Some credit union loans.
Telephone or online credit agreements
The Act requires that you must be provided details before you are contractually bound. The information provided must include the following:
- The name and address of the creditor;
- Description of the main characteristics of the credit agreement;
- The total price payable for the credit;
- Arrangements for payment; and
- Information regarding a right of withdrawal.
Credit agreement cooling-off periods
You have the right to cancel such agreements (including those signed at a temporary marketing display stand) within the cooling-off period. Details of your cancellation rights must be included with the credit agreement. Cancellation will result in any deposits being returned and may necessitate the return of purchased goods.
Unfair relationships and protecting borrowers
If you think an agreement is unfair, it can be challenged under section S140A of the CCA. The challenge must be based on unfair terms or how the lender has exercised or enforced their rights. Once an allegation is challenged, the burden of proof shifts to the lender to prove that the relationship is fair.
How we can help
Reputable lenders are usually extremely fair with handling queries, however, if you do encounter any issues then Lestons have specialist staff to liaise with them to try and remedy the situation. To gain our assistance you need to open a case, this is done by simply clicking on the link at the top of the page, you will then need to deposit a sum equal to one hour’s usage, upon receipt of these funds you will be assigned your personal caseworker who will telephone you to discuss the matter and make suggestions on how to proceed. Please note your caseworker is not legally trained and can only give generic advice, their role is to prepare your details for handling by our trainee and qualified solicitors and to act as your point of contact, they will also issue you with your Password and PIN, these will be needed to log onto your client dashboard. From your dashboard you will be able to manage and view every aspect of your case, upload documents, images, files etc.