The Consumer Credit Act came to be in 1974 in the United Kingdom. It received an update again in 2006 and was fully implemented in October of 2008. The UK law establishes the grounds by which any business giving credit to a consumer must follow. It requires that most businesses offering goods or services on credit, or those that lend money to consumers, have a license by the Office of Fair Trade. The amendment to the act provided consumers with even more rights under this law.
Original Act
The original Consumer Credit Act provided rules on how lenders formed contracts and agreements. It also instituted protections on credit advertising. It defined the method of calculating the Annual Percentage Rate (APR). The act also adopted procedures, which lenders must follow if the borrower defaults, terminates or settles a debt early. It affected credit brokers, debt management businesses and credit repair agencies by requiring these professionals to have formal licenses to operate. Full disclosure of terms and honesty in advertising were focuses of the original act.
Consumer Rights
One of the ways in which the Consumer Credit Act was improved in 2006 was to give consumers more rights to challenge unfair lending agreements. In particular, this gave consumers the right to dispute charges and get resolutions easier. The law provides for consumers to use an independent ombudsman (FOS) if they are unhappy with their lender, debt collector or broker. The consumer may also sue the lender if she believes her lender is unfair. Borrowers can also sue lenders for more time to repay debts.
More Information
Consumers now get better and more in-depth information involving their debts, thanks to this act. Regular statements are now required during the lifetime of the debt. These statements must include balance breakdowns, interest payments and default charges clearly displayed. Arrears notices are to arrive with an informational sheet stating the extent of liability the consumer has for paying the debt. It also states the consequences of not paying the debt.
Improved Confidence
Stricter regulations on lenders allow consumers to have improved confidence in their lenders. Consumers now are less likely to do business with incompetent traders and other unsavory companies. This is due in part to the improved enforcement powers and strengthened sanctions the federal government has in prosecuting these individuals. This improved power came into being through the Consumer Credit Act.
Errors
Many errors have been detected in agreements which has made them unenforceable in the court of law, some of the examples that solicitors come across are:
Non-provision of prescribed terms
The lender has not provided all the information required of them in relation to the CCA 2006
Inappropriate execution of agreement
The agreement was not executed correctly or in accordance with the CCA 2006.
Miscalculation of APR or the Total Amount Repayable
Calculations of interest payable are carried out incorrectly or not documented.
Non-provision of relevant documentation post agreement
The lender is unable or unwilling to provide the necessary consumer documentation in accordance with the CCA 2006.
Non-disclosure of commissions or fees
If your loan was received via a third party and the amount of commission was undisclosed this is in violation of the CCA 2006.
Legalxperts with its panel of solicitors are there to assist you to get your debt written off. Don’t hesitate make a claim now
You can click on the links below to access information and the forms for claiming:
Unfair Bank Charges
Unfair Credit Card Charges
Unfair Credit Agreements
Mis-Sold Payment Protection
Approximately 50 million Credit Agreements are created in the UK each year and we believe well over 25 million of those could be unenforceable.
You keep 100% of any final settlement plus interest. You will also get to keep any goods or services already purchased
