10 Things You Need to Know About the Consumer Credit Act

Companies who offer credit to their customers must abide by the Consumer Credit Act.  It has been proved that some companies do not stick to the rules and regulations outlined in this act, and so are providing unfair credit agreements to their customers.

Here’s what you need to know about the Consumer credit Act.

1.   The Consumer Credit Act was introduced in 1974 to protect the rights of consumers.  Before this, companies could offer credit without their customers being properly aware of the implications of what they were agreeing to.

2.   Because of this, some sort of regulation became necessary, due to consumers wanting more information about the credit agreements they were signing, and how much they would be paying on a monthly basis, the total they would pay, and the rates of interests involved.

3.   The Consumer Credit Act states says that a credit agreement should not include unfair terms and conditions, unclear or misleading APR rates, or missing or misleading information.

4.   Credit Agreements that don’t meet these requirements are said to be unfair credit agreements, and are unenforceable.  If proven in a court of law that the agreement is unenforceable then it will not need to be paid back. 

5.   People are keen to check whether they have any unenforceable credit agreements, as there is often a lot of money, or a long repayment time involved.  Credit agreements can be assessed as long as there is a balance of over £1000 and at least 12 months left.

6.   There are different types of credit that are covered, so whether you have a credit card, car loan, store card or “buy now pay later” deferred loan, you still might not have to pay off the balance.

7.   The claims company you choose will be able to advise you on the processes, and what to expect.

8.   The audit of your credit agreement will bring to light whether the agreement is legal or not, and whether there is a case for your creditor to answer.

9.   If there is a case, then the claims company and their solicitor will either settle out of court with your lender, or have a hearing in court.

10.   If the court hearing is successful, and it is found that your credit agreement is unenforceable, then you won’t have to pay off the rest of the balance.

Now you know more about the Consumer Credit Act, is it time for you to find out whether your credit agreements are unfair?

If you think that you might have an Unenforceable Credit Agreement, and you want it to be checked out, why not speak to an experienced Claims Company, and find out how the Consumer Credit Act, can help you, at CreditClearUK.co.uk today. Make this your first step to becoming debt free.