How does it work?

The Consumer Credit Act 1974 was introduced to protect UK consumers. It contains very strict ‘prescribed terms’ which must be followed in every credit agreement for it to be legally enforceable.

If there are errors in your consumer credit agreement, it’s regarded as being unenforceable, in which case our solicitors may be able to help you have some or all of the outstanding debt reduced or even written off.

Just as importantly, for consumer credit agreements signed since April 2007, Ratio Money can check whether your relationship with the lender is fair under the Consumer Credit Act of 2006. This states that for credit agreements signed after April 2007, breaching a prescribed term will no longer automatically make an agreement unenforceable, but it might make it ‘unfair’.

If your relationship with your lender is deemed to be unfair, the court has discretionary powers to redress the balance. This could include:

• cancelling the agreement entirely
• changing it so you don’t have to pay back so much, or
• ordering some other action to make the agreement fairer.
  

Note: the ‘unenforceability’ aspects of the Consumer Credit Act 1974 only apply to credit agreements up to a maximum of £25,000.

How much can I keep?

You keep 100% of any final settlement, plus interest. You also get to keep any goods or services that you have already bought with the credit.