Consumer Credit Act 1974
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21 January 2011
The consumer credit Act 1974 gives people
who enter into credit agreements protection in the following ways (as
long as the credit was not more than £25,000).
If you have signed a credit agreement and
you want to cancel it you can do so within a certain period of time as
long as you did not make the deal over the phone and you did not sign
the agreement at the seller's shop, office or workplace, (this can
include an exhibition stand). Therefore if you signed the agreement in
your own home you will be able to cancel after you have signed the
The seller is supposed to send you a
written notice telling you how you can cancel and how long you have to
cancel. You must cancel by writing to the address given on the notice.
You will be entitled to the return of any deposit paid or goods traded
in part-exchange if you cancel the agreement in time.
What the creditor must do?
A creditor, (the one who provides credit)
cannot demand early payment, try to get the goods back or end the
agreement without first serving a written notice on you giving you 7
days notice of their intention to take such action, (Default Notice).
The notice has to be written in a
particular way. If you receive a notice you should get legal advice to
check that it is a proper notice.
The notice should contain the following:
1. The notice should say how much should
be paid to bring payments up to date.
2. When payments should be made.
3. What will happen if payments are not
4. How the agreement can be brought to an
end and that if payments are made the
agreement will not be brought to an end.
Rashidul Islam is a Trainee
Solicitor with Lawdit and can be contacted by email
About the Author
Lawdit Solicitors offer services and
advice for litigation, commercial contracts, Intellectual Property and IT legal
agreements. We are experts in commercial law with a heavy emphasis on
Intellectual Property, Internet and e-commerce law. Lawdit is a member of the
International Trademark Association, the Solicitors' Association of Higher Court
Advocates and we are the appointed Solicitors to the largest webdesign
association in the world, the United Kingdom Website Designers Association.
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Article Published/Sorted/Amended on Scopulus 2011-02-10 14:12:46 in Legal Articles