The Consumer Credit Act 1974 (amended by the Consumer Credit Directive) protects consumers – whether individuals, or partnerships of up to three people.
Limited companies are not protected under the Consumer Credit Act.
The legislation protects consumers who take out credit agreements, loans or credit agreements regarding purchases, hire agreements or what are known as “running accounts” for credit, such as credit cards and store cards.
The Act can be used to make a claim where the terms of the Consumer Credit Act (CCA) have not been followed – including if a consumer is in arrears with payments or has defaulted.
All loan and credit agreements must be set out in writing by the lender – including how much a borrower has to pay.
If the terms have not been set out correctly under the credit agreement, it may be possible for a consumer to challenge the legality of such agreement.
In cases of non-payment, there are set procedures which lenders must follow – if a creditor takes legal action against a consumer for arrears or for defaulting on a credit agreement, this may put the consumer’s home at risk.
However, if the CCA rules are not followed correctly or are ignored – or the consumer was not made sufficiently aware of what they were signing – it may be possible to make a consumer credit claim for compensation.
In some credit agreements, the lender can repossess the items if a consumer defaults on repayments – for example, in cases of hire purchase, if less than one-third of the debt has been paid, repossession is lawful, but the lender must first obtain a court order to repossess any goods.
Duncan Lewis can help at any stage of a dispute involving consumer credit, including claims involving:
Wherever possible Duncan Lewis will accept claims on a no win no fee basis.
Duncan Lewis can also advise in cases involving “loan sharks”, where debt has accrued and legal action is threatened (eg bailiffs).
Our specialist consumer credit dispute lawyers can take swift action to protect a client’s interests – and have a successful track record in challenging the legality of consumer credit agreements which are not compliant with the CCA.
For expert legal advice on Consumer Credit Disputes and Claims, call Duncan Lewis Financial Litigation Solicitors on 0333 772 0409.