Tuesday, 16 July 2013

Information About the Consumer Credit Act



As a consumer, you have the right to obtain financing fairly in a competitive environment. The CCA regulates your credit card purchases and provides protection to you as a consumer when you enter a financing or hiring agreement. Here is a condensed version of the CCA.


1.    Coverage
CCA 1974 regulates your credit and protects your content and form of credit agreements, method of calculating annual percentage rate (APR) for lenders, the procedures during cases of defaulting, termination or early settlement and extra protection on items paid through credit cards. The law also regulates credit advertising.

2.    Consumer Rights
Creditors have the right to assess your creditworthiness before you are given the right to obtain credit using substantial information from you and a credit monitoring company. Before you make an agreement, the credit company must first know you recognize the nature and parties involved in the agreement, your key financial information including your credit limit, APR, total amount payable, timings of repayments and the agreement’s duration.

3.    Right to Withdraw
If you want to cancel a credit agreement, you could do so but only after a 14 day cooling-off period. During this period, you are responsible for paying the amount borrowed and the interest accumulated up to the point date of your cancellation. The 14 day cool-off period is appointed from the day the agreement is concluded with approval from both parties.

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