A Critical Analysis and Evaluation of Consumer Credit Act Section 75

This essay provides a critical analysis and evaluation of Section 75 of the Consumer Credit Act 1974, examining its application within consumer credit contracts. The essay delves into the key principles and rules of commercial law, specifically focusing on how Section 75 addresses issues of default and liability related to credit cards. It explores complex factual scenarios, producing reasoned judgments of possible outcomes while evaluating the doctrinal and conceptual difficulties, ambiguities, and alternative approaches to the principles. The essay also discusses the implications for consumers and the credit industry, considering arguments about the equity and practicality of Section 75's application. The essay concludes with a summary of the key findings and their significance within the broader context of consumer credit law, referencing relevant legal cases and scholarly articles in OSCOLA style.

SECTION 75 OF THE
CONSUMER CREDIT Act
1974
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
In respect of the above statement, critically analyse and evaluate the application of s75 in
consumer credit contracts............................................................................................................3
3Apply those rules to complex factual situations and produce a reasoned judgment of possible
outcomes......................................................................................................................................4
4Evaluate doctrinal and conceptual difficulties and ambiguities with principles rules and
concepts and analyze alternative approaches and outcomes.......................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Law is one of the most important body which plays the significant role within the business
organisation through which goals can be accomplished. It is essential for any of the entity to
understand that they must be able to follow the rules and regulation at the time of performing any
of the business activity. In context of the file, there will be detail discussion about Consumer
Credit Act, 1974. In this respective act, major focus will be based upon section 75 which is very
much important in current scenario and that relates will default and liability for the credit card.
MAIN BODY
“Section 75 of the Consumer Credit Act 1974 has continued to be welcomed by consumers
and consumer groups, although those in the credit industry have argued that it is inequitable
and problematic in its application”.
In respect of the above statement, critically analyse and evaluate the application of s75 in
consumer credit contracts.
It is necessary for any of the person to understand that whenever they perform any of the
business activity it should be based on legal laws and regulation and if any of the person
breaches it then legal penalty can be imposed upon defaulter. Talking about Commercial law, it
can be simply explained as the law and regulation which governs business organisation and how
they are needed to perform any of the business activity in any of the situation. This law simply
provides guidance as well that how any of the work can be managed in a systematic manner
through which goals and target can be achieved K. E. Kindgren (2016).
Consumer Credit Act, 1974 is one of the act which works for the purpose of regulating
consumer credit and consumer hire agreement. It is among one of the most essential law because
it simply set the specific standard which is needed to be followed by every party who involved
within the credit transaction. The guidelines of the law allow to understand that how credit
should be marketed and managed for attaining specific result.Here, agreement is required to be
prepared and according to that specific contracted terms and guidelines contract related to credit
should be performed. Agreement under this act is to be regulated through Office of Fair Trading
(OFT).
There are different bodies in United Kingdom which prepares the laws and regulation and that
simply explains that everyone must be able to follow guidelines of law. In present scenario, there
are House of parliament European Union and Common law are the main body has formed laws
and regulation for commercial department and it is essential that they must be able to follow

them and if in any of the circumstances they fail to do so then legal penalty can be imposed. For
the purpose of interpretation of law, it has been found that legal advisor can be hired by the
organisation who can make them understand about the law so that problem can be resolved
(H.W. Wilkinson (2018).
There are number of contracts which are being formed on a daily basis and it is necessary
that those rules and regulation must be followed. If in any of the situation, organisation fails to
follow those rules and regulations then different types of penalty can be imposed. Similarly, one
of the section 75 of consumer credit act 1974 has been formed so that fraud related activity can
be reduced. As per this particular section, consumer get the right to take legal action where they
do not get their product on specific time period. Even, there are some of the situation where
product of any organisation is not as per their description which simply means that problem are
needed to be solved as soon possible or even legal action can be taken easily upon the defaulter.
In addition, there are number of other things which are covered within this particular section.
Simply, it says that it can covers cost but there’s also an opportunity toclaim for association
costs.There were found some of the issues in which it was seen that claim was not allows to
make against those store which has been closed but in recent period of time, this section has
given that right in which claim can be made against closed credit account. In simple words, legal
action can be taken against defaulter if theymake any of the mistake. But, there are certain types
of guidelines which are needed to be followed for the purpose of making claim against defaulter.
The first is that whenever any of the claim is required to be made then proper description should
be made where all of the description about the documents must be made and if in any of the
condition person fails to do so then legal action can be also taken under it.Receipt of the payment
is also required in it which works as a evidence in it. Whenever any of the claim is required to be
made then help of service provider bank is essential which can give guidelines that how any of
the organisation is required to perform their business activity. If any of the case is required to be
file, then time period of 6 months is available and if any of the person fails to file case within
that respective period then it becomes difficult to file any of the case against defaulter. Also,
guarantee of seeking money back reduces in it significantly.
3Apply those rules to complex factual situations and produce a reasoned judgment of possible
outcomes
Under this act Advertising and APR is included within the act and it explains that if a
advertisement includes an rate of interest or any kind of amount relating to cist of credit. Further
there should be relevant information in which rate of amount should relate to cost of credit. Only

important and relevant information should be given regarding it. It should be certainly based
upon standards in which it has to be informed about involving of representative. Example of such
type should include concrete and consistence logic in it. It should also be able to protect and
prominent that if information is been leaked or triggered then it should be and inclusion of the
basics of the act. Also the representative should be able to reflect about 51% of the business that
has happened because of advertisement. Standard information should be given to representatives
of agreements as per the requirements of the representative. Non- status or an competitive
indication triggers an representative but does not trigger him. Prominence should be there with
relevancy in incentive to be given. A rule that has been given for representative and even it is
different from requirement that has new assumption. As per credit worthiness and adequacy of
explanation as the previous requirement and if new assumptions has been presented.Creditor
requires assessing the borrower and over its creditworthiness which means the he is able to pay
the credit within time period. It should be based upon sufficient information that has been based
upon information that borrower has been given by him in appropriate manner. Creditor must
ensure to the borrower that it has to provide an explanation about the agreement that has been
formed between them. This information should be given in detail manner. This can be
understood with an example like an particular agreement, the cost and consequences of failure to
make payment has been added. In order for enabling him to assess about the needs and financial
situation. Such explanation should be able to cover certain kinds of situation and has to be
provided with certainty of specific kind of situation and also exceptional situation should be
provided within the agreement. Before signing of an agreement everything has to be shared
between both the parties. Rate of interest should be decided by them. Pre-contractual information
an agreement. Also discloser regulation is required to be formed upon contractual information
that has to be given to the borrower before formation of contract takes place. All information
should be legal and related to contract only. Borrower should be allowed to use credit according
to his requirement. An over draft is considered to bean different kind of credit that can be used as
a source to give credit. As per the Agreement Regulation proper information should be described
and has to be regarding relation to credit agreement. New rights for consumer to get credit in the
form of fixed-term loan. Such statement can be requested at any time within the duration of
agreement not more than one time in a month on frequent basis. K. E. Kindgren, 'THE
CONSUMER CREDIT ACT 1974: ITS SCOPE' (2016). Other changes that has taken place
within the act is that has been explained as. The borrower should be informed about the changes
which has been taken place in the interest rate. Mentioned in the agreement. All changes should
be in writing before the agreement is signed. Borrower is entitled for seeking of redress from the
creditor under special circumstances only. Under which he is unable to obtain satisfaction from
the supplier of goods or services.
4Evaluate doctrinal and conceptual difficulties and ambiguities with principles rules and
concepts and analyze alternative approaches and outcomes
From this act it has been clear that lot of changes has been made which has helped in
improvising upon credit giving and credit taking agreement. It has been found that doctrine
related to it has helped in enhancing the act. Making it more liable under special circumstances.
Also providing legality towards various borrowing method. Doctrine has changed many concepts
and has helped in ease down procedure of granting credits.

CONCLUSION
From the above file it can be concluded that an this section is very helpful in solving of
problems related to credit agreement because lot of changes has been made that has showed and
faster method to borrow credit. Also some key features has been covered regarding the act. Also
it has been clear that doctrines have also brought changes in it to make it smooth. Also basics
regarding the section75 of the cat has been covered.

REFERENCES
Books and journals
K. E. Kindgren, 'THE CONSUMER CREDIT ACT 1974: ITS SCOPE' (2016) 40 The Modern
Law Review.
H.W. Wilkinson, 'Extortionate Credit Bargains Under The Consumer Credit Act 1974' (2017) 8
Anglo-American Law Review.
Christopher Bisping, 'Avoid The Statutist Trap: The International Scope Of The Consumer
Credit Act 1974' (2018) 8 Journal of Private International Law.
K. E. Kindgren, 'THE CONSUMER CREDIT ACT 1974: ITS SCOPE' (2019) 40 The Modern
Law Review.
K. E. Kindgren, 'THE CONSUMER CREDIT ACT 1974: ITS SCOPE' (2020) 40 The Modern
Law Review.
'Consumer Credit' (2016) 23 International and Comparative Law Quarterly.
'Consumer Credit' (2016) 23 International and Comparative Law Quarterly.
J. J. McManus, 'The Consumer Credit Act 1974' (2020) 2 British Journal of Law and Society.
K. E. Kindgren, 'THE CONSUMER CREDIT ACT 1974: ITS SCOPE' (2018) 40 The Modern
Law Review.
H.W. Wilkinson, 'Extortionate Credit Bargains Under The Consumer Credit Act 1974' (2020) 8
Anglo-American Law Review.