Consumer Credit Act

What is the Consumer Credit Act?

The Consumer Credit Act was introduced in 1974 with the aim of protecting the rights of consumers who enter into credit agreements and calling for greater transparency in the terms under which these agreements were drawn up.

The Consumer Credit Act states that all credit agreements must not contain any of the following:

• Unfair terms and conditions
• Unclear or unfair APR rates
• Missing or misleading information

Under the Consumer Credit Act, credit agreements that do not match up to these criteria can be deemed to be unfair on the consumer and therefore they are rendered ‘unenforceable.’ This means that the agreements are effectively torn up and the debt wiped clean.

What types of credit agreement come under the Consumer Credit Act?

Most types of credit agreements, which involve both the lender and the consumer to sign a written document are governed by the Consumer Credit Act. These include:

• Credit and store cards
• Secured and unsecured loans
• Consolidation loans
• Deferred loans
• Car finance agreements

How can I find out if my credit agreement is compliant with the Consumer Credit Act?

If you suspect that a credit agreement you have signed may not comply with the Consumer Credit Act, then the first step is to contact one our team of advisers today on 0800 038 3322.

We will quickly be able to assess whether or not your agreement meets with the terms of the Consumer Credit Act, and if this is not the case, then we will be able to pursue an unfair credit agreement claim on your behalf.