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The Consumer Credit Act 1974

Credit Cards and Unsecured Loan Write Off – How does it work?

What is the Consumer Credit act 1974?

The official long title is:  “An Act to establish for the protection of consumers a new system, administered by the Director General of Fair Trading, of licensing and other control of traders concerned with the provision of credit, or the supply of goods on hire or hire-purchase, and their transactions, in place of the present enactments regulating moneylenders, pawnbrokers and hire-purchase traders and their transactions; and for related matters”

The Consumer Credit Act of 1974 was brought about to protect UK Consumers, however, the terms that allowed the consumer protection were not clear and therefore for years the Credit Industry was allowed free reign with little resistance or challenge from consumers.

These unclear terms of protection have now been changed as a result of the Consumer Credit Act of 2007. This makes it clear to all parties that Consumers can challenge a Credit Agreement if they believe it to be unfair. If proven to be unfair and unenforceable then they may be able to have theire credit card or personal loan taken out before April 2007 written off.

Our specialist financial compensation claims solicitors can check, audit or review your agreements and confirm if they are unfair or indeed unenforceable. If you believe you may have taken up an “Unfair Credit Agreement” they can handle the whole process for you including if necessary taking your Lender all the way to Court.

Our team of solicitors combine their knowledge and experience in finance with their Legal Panel’s expert legal advice to ‘Audit’ your credit agreement.

They can check that your agreement complies with the prescribed terms defined in the Consumer Credit Act of 1974. The Consumer Credit Act 1974 exists to protect the rights of lenders and borrowers who are in contract with each other.

Millions of credit agreements, ranging from credit cards to loans may be in breach of the Act and may be deemed to be unenforceable. Where a borrower’s agreement is declared ‘unenforceable’ he/she would not be required to make any future repayments and may have the debt legally written off.

What can I claim?

Irrespective of whom your credit card or unsecured loan provider is, so long as the balance is over £1,000 we could help. Once signed up our specialist team will obtain and ‘Audit’ your agreements and they will then guide you through the rest of the process.

No matter how many credit cards, store cards or loans you have they could help with them all. If your case meets the qualifying criteria the balance of your credit or unsecured loan could be written off in full.

In Debt Solutions invites you to visit Challenge Your Agreements under the Consumer Credit Act 1974 to find out if your agreements qualify.