The Consumer Credit Act - Common Questions

Cancelling credit:


I signed a credit agreement for a new car this week but I have just lost my job and I am worried about keeping up the payments. Can I get out of the deal?


As long as the amount of credit isn't more than £60,260 you have 14 days in which to change your mind and cancel the credit agreement. You will have to repay the amount borrowed along with any interest that's accrued up to the point at which you decided to cancel.


Settling a loan early:


I have a year remaining on a five-year credit agreement I took out for a three-piece suite. I've inherited some money, can I pay off the loan early?


Yes, and you should not have to pay the full amount of interest, because you are settling the loan early. Write to the credit provider saying you want to pay off the loan early.


It must then send you a statement, setting out the how much you must pay, taking into account the reduction in interest for early settlement. The statement must set out the basic calculations involved in arriving at that sum.


Refused credit:


I applied for a store card but I have been turned down. I'm not sure why – can I find out why I was refused?


It is entirely a credit provider's decision whether or not they provide you with credit. However, you can see what details a credit reference agency holds on you that may have influenced its decision.


If you write to the store card provider within 28 days of being turned down, you can ask for the names of any credit reference agencies it used. You can then ask an agency for a copy of your file which will outline your credit history. The agency can charge you £2 for this. If there is wrong or out-to-date information in your file, you can ask for the agency to amend it.