Consumer Credit Disputes in the UK
From PCP and hire purchase to credit cards and buy now pay later — this guide explains your rights when something goes wrong with a consumer credit agreement.
Your rights under the Consumer Credit Act 1974
- —Request a copy of your original credit agreement — debt is unenforceable until provided
- —Voluntary termination rights (s.99) — terminate HP or PCP once 50% of total payable has been paid
- —Section 75 protection — credit card provider jointly liable for purchases of £100–£30,000
- —Early settlement right — settle early and receive a rebate of interest
PCP and car finance disputes
- —Voluntary termination being refused or applied incorrectly
- —Discretionary commission arrangements (DCAs) — the FCA found widespread hidden commissions on car finance before January 2021, giving rise to potential mis-selling claims
- —End-of-contract condition disputes — excess mileage and damage charges
If you took out car finance before January 2021, you may be entitled to compensation. Check with the Financial Ombudsman Service or a specialist firm whether you have a valid claim.
Section 75 credit card protection
Your credit card provider is jointly liable with a retailer for misrepresentation or breach of contract on purchases between £100 and £30,000. Claim directly from your card provider if a company has gone into administration, failed to deliver, or provided something substantially different from what was sold.
Affordability complaints
If a lender gave you credit that was clearly unaffordable given your income and existing debts, this may breach FCA responsible lending rules. Complain to the lender then the Financial Ombudsman. Successful complaints often result in interest being written off.
Defaults and credit records
If a default on your credit file is inaccurate, write to the creditor requesting correction and dispute it with the credit reference agency. If accurate but with mitigating circumstances, add a Notice of Correction — a 200-word statement explaining the situation.