The Consumer Credit Act (CCA) is a UK law that covers consumer credit agreements. A credit agreement is a legally binding contract between a lender and a borrower, which sets out the terms and conditions of a loan or credit facility.

The CCA provides protection to consumers who borrow money by requiring lenders to follow specific rules. These rules apply to all types of consumer credit agreements, including credit cards, store cards, personal loans, and hire purchase agreements.

One of the key requirements under the CCA is that lenders must provide borrowers with a clear and concise explanation of the terms and conditions of the credit agreement. This includes the total amount of credit being offered, the interest rate, the repayment schedule, and any additional fees or charges that may apply.

Lenders must also provide borrowers with a copy of the credit agreement before they sign it. This allows borrowers to review the terms and conditions of the agreement and ensure that they understand their obligations as a borrower.

Under the CCA, borrowers have a number of rights, including the right to cancel the credit agreement within 14 days of signing it. This cooling-off period allows borrowers to change their minds about the credit agreement without penalty.

The CCA also sets out rules for what happens if a borrower falls behind on their repayments. Lenders must follow specific procedures before taking legal action to recover the debt, and borrowers have the right to dispute the amount of the debt if they believe it is incorrect.

Overall, the Consumer Credit Act is a vital piece of legislation that provides important protections to consumers who borrow money. By understanding their rights under the CCA, borrowers can make informed decisions about their finances and avoid falling into debt traps.