Consumer Credit Act 1974 - Essay Example

Extortionate credit bargains. 
(1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, about a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor who with the supplier, shall accordingly be jointly and severally liable to the debtor. (2) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under sub-section (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor. (2) Civil effect.

Any provision of a credit contract that imposes a monetary liability prohibited by subsection (1) is void to the extent that it does so. If an amount that is prohibited by subsection (1) is paid, it may be recovered. A credit provider must not (a) Enter into a credit contract on terms imposing a monetary liability prohibited by section 21(1); or (b) Require or accept payment of an amount in respect of a monetary liability that cannot be imposed consistently with this Code. (1) The Court, on application by the debtor or mortgagor, may order a credit provider to credit the debtor or mortgagor with a payment, fixed by the Court, exceeding the net proceeds of sale if it is not satisfied that the credit provider sold the goods as soon as reasonably practicable (or at such other time as the credit provider and debtor or mortgagor agreed) for the best price reasonably obtainable. (2) On application by the debtor or mortgagor, the mortgagee under any prior mortgage to which the goods are subject, or the mortgagee under any subsequent mortgage of which the credit provider has notice, the Court, if not satisfied that the credit provider complied with section 78, may make an order requiring the credit provider to compensate the debtor or mortgagor or the relevant mortgagee for any loss suffered as a result.