Know your rights
Anthony Higham, litigation specialist at Butcher & Barlow’s Bury office, provides a summary of
your rights when buying through credit
Britons will spend, on average, over £450 each on presents at Christmas, and often on credit. The Consumer Credit Act covers most commercial lending in the UK, setting out what lenders must do when they lend money and your rights when borrowing.
What does the Consumer Credit Act Cover?
Most household borrowing including credit cards, store finance, catalogues and payday loans.
What should I be told before entering into a credit agreement?
The amount of credit and/ or credit limit, the duration of the agreement, the interest charges and the APR, the total amount repayable and when your payments are due. Both you and the lender should sign the agreement and you must be given a copy of the agreement on the date it was signed or within seven days.
I do not want the credit anymore, what can I do?
You have 14 days from when you signed the agreement to cancel a credit agreement
If I cancel the credit, what happens to the goods?
If you have received any goods then you will need to return them or find an alternative way to pay for them. If you have borrowed money you will have to repay it along with any interest which has been charged up to the point of cancellation.
I pay for most things on credit card, is there any other additional protection?
Yes, provided the amount purchased on the credit card is between £100 and £30,000. If you have a claim for breach of contract or misrepresentation (i.e. where the goods are not as described or are not delivered) against a company, you can ask your credit card provider to reimburse you the amount paid. This applies to goods bought online, from abroad, over telephone or by mail order.
However strong your legal protection, if the credit provider has not or will not obey the rules, you should seek legal advice on how best to resolve your dispute.
LEFT: Anthony Higham