Consumer Credit Act 1974 (CCA)
The above Act was written in to Legislation for the protection of all Consumers in the UK in respect of the use of any instruments of Credit - such as Finance Agreements & Credit Cards - and has been increasingly strengthened over the years to meet the changing world in which we live
Supplementary Sub-Sections have been added to this Act such as the Financial Services Distance Marketing Act (2004) to offer additional protection as more and more Businesses changed the manner in which they trade as Technological Advances created new platforms from which Sales & Marketing could be conducted
Pre-existing Acts such as the Unsolicited Goods & Services Act (1971) were already in place to combat the increasing activities of Companies that 'Cold-Called' or 'Canvassed' Clients on their own doorstep - or by mail - and by telephone - this Act was absorbed into the CCA as another Sub-Section on its introduction
However - the most important revision of the CCA for Consumers as a whole - are the significant changes that were introduced in February 2010 (21st) which empowered the Consumer by bringing in new and wide ranging recourse to the Law - specifically in respect of transactions that involved the use of Credit Cards - and to a lesser degree - the use of Debit Cards
Prior to February 2010 - the insurance facility on purchases made by Credit Cards only offered Insurance or Protection Cover for a period of twelve months - but sadly offered little protection in the event that the Retailer/Supplier had ceased trading
In addition to this shortfall - in the event that a Deposit or Part Payment was made by Credit Card and the Balance was settled by any other means such as Cash, Cheque or Bank Transfer - only the Deposit was covered by the insurance facility behind the Credit card - and the Balance therefore had no protection whatsoever
Fortunately these two situations have changed for the protection of us all as Consumers:
1. The Insurance Protection has now been extended to cover a period of six-years - and this change has been introduced retrospectively - that is to say that any transaction that has been made during this period is now covered under the Rules of the new Legislation
2. If any portion of the total purchase price was paid by a Credit card (i.e. a Deposit or Part-Payment) then the full amount of the purchase price enjoys the same protection
However - the most significant change in the Legislation was its extention to cover any situation where the Retailer/Supplier has either failed to supply the goods or services - or that the goods or services proved faulty - or if the Retailer/Supplier was in any way in default of the Protective Legislation in any way whatsoever
So What Actually Changed?
So What Changed?
As and from February 2010 if the Card User can prove any of the above then the Bank or Card Issuer are now deemed to be 'Jointly & Severally' Liable for the whole transaction
At last the Consumer is protected in the event that the retailer fails to remedy any default or in the event that the retailer has ceased to trade
In either event - the Bank or Card issuer is responsible to ensure that the Consumer receives a refund - whether from the retailer or from the Bank or Card issuer
This means that whatever happens - providing that the transaction was within the last six years and involved the use of a Credit Card - the consumer will get a full refund regardless of who has to pay - in certain cases the Consumer can also be entitled to damages
This can be viewed on the following links:
http://www.fool.co.uk/credit-cards/information/why-use-a-credit-card.aspx
The Sale of Goods Act 1995 (as amended 19/07/1995)
This act also offers Consumers considerable protection - and is indelibly linked to the Consumer Credit Act; the Unsolicited Goods & Services Act and the Distance Marketing Act - in respect of the manner in which retailers conduct business - specifically in respect of Contract Law & Cooling Off Periods
In the event that your Credit Card was processed - with or without your authorisation - within 14 days of you having the Contract for Goods & Services in your possession - this automatically constitutes breach of the Legislation and places the retailer in default giving the Consumer the right to reclaim any monies paid - either by the Retailer or the Bank/Card Issuer