What is the Consumer Credit Act in the UK?

The Consumer Credit Act 1974 in the UK is legislation designed to regulate the consumer credit industry, ensuring fair and transparent practices between lenders and borrowers. It provides crucial protections for consumers, including the right to challenge credit agreements and seek redress in cases of unfair treatment.

What is the Section 75 regulation?

Section 75 of the Consumer Credit Act 1974 provides consumers with legal protection for purchases made with credit, giving them the right to claim against their credit provider if goods or services costing over Â£100 and under Â£30,000 are faulty, not delivered, misrepresented, or a breach of contract has occurred. This regulation holds the credit issuer jointly and severally liable, ensuring consumers can seek financial redress without needing to resolve the issue solely with the seller.

Can section 75 be reversed?

No. A Section 75 claim cannot be reversed once it has been successfully invoked and a claim has been settled. However, consumers can withdraw their claim at any stage before resolution if they choose to do so.

Does section 75 cover business transactions?

Section 75 of the Consumer Credit Act does not generally cover business transactions, as it is designed to protect individual consumers.

Who is protected by the Consumer Credit Act?

The Consumer Credit Act primarily protects individual consumers who enter into credit agreements with lenders. It ensures they have legal safeguards against unfair lending practices and provides avenues for redress in cases of disputes or misrepresentation.

Author

Tracy Cray

Tracy Cray has over 35 years of experience in the credit, prepaid, and debit card payments industry. She specialized in chargebacks and Section 75 of the Consumer Credit Act 1974 at the Royal Bank of Scotland (RBS) before joining Chargebacks911 as Director of Card Scheme Compliance. She is also involved in a number of chargeback and scheme forums, and serves as the Founder and Chair of the UK experts Chargeback and Compliance Group.