Consumer Credit Dispute Solicitors
Consumer credit relates to borrowing money to buy goods or services. There are different types of consumer credit, like credit cards, personal loans, and store credit accounts.
Under the Consumer Credit Act 1974, businesses offering loans or goods on credit have to follow specific standards including:
Giving consumers clear pre-contract information before they commit to any credit agreement.
Putting specific elements in Consumer Credit Agreements.
Explaining how Annual Percentage Rates (APRs) should be calculated.
Giving clear instructions on handling defaults, terminations, and early repayments.
Providing credit card protection for purchases ranging from £100 to £30,000.
Assessing a consumer's creditworthiness before granting a credit agreement or increasing the borrowing amount significantly.
Sometimes, businesses don't follow these rules properly, when this happens, consumers can start a consumer credit dispute claim.
At Lawhive, our network of specialist litigation solicitors is on hand to help you resolve a credit dispute if you find yourself in the middle of one.
Contact our Legal Assessment Team for a free case evaluation and fixed-fee quote.
What is the Consumer Credit Act 1974?
The Consumer Credit Act 1975 is a UK law that oversees agreements between consumers and lenders. Its main aim is to protect individuals and partnerships of up to three people who take out credit agreements.
What is a consumer credit agreement?
A consumer credit agreement is a formal agreement between an individual (the debtor), and another person (the creditor). In this agreement, the creditor provides the debtor with credit, which could be any amount of money.
What credit agreements are covered by the Consumer Credit Act 1974?
The Consumer Credit Act 1974 covers various agreements, including personal loans, credit cards, store cards, hire purchase agreements, and secured loans not secured on a person's main residence.
What are my rights under the Consumer Credit Act?
Under the Consumer Credit Act you have a right to:
Receive a default notice informing you of the arrears if you fall behind on payments.
Be allowed to bring your account up to date before creditors take further action against you.
Get regular statements for all of your accounts.
Receive an arrears letter if you fall behind on payments.
Escalate complaints to the Financial Ombudsman Service if you're not satisfied with the resolution provided by the creditor.
What is a consumer credit dispute?
A consumer credit dispute happens when the terms outlined in a credit agreement aren't followed as per the Consumer Credit Act.
Under the Act, creditors must give you all the details of a loan or credit agreement, including the repayment amount, in writing before you sign it. They must also follow specific procedures if you default or miss repayments.
If a lender doesn't follow the correct procedures, or you were not fully informed about the terms of the agreement, you may be able to claim compensation.
To find out if you have a case, contact our Legal Assessment Team for a free case evaluation.