Remedies for connected lender liability in consumer credit

Copyright © 2025 LexisNexis
Produced in partnership with Reanne MacKenzie of Henderson Chambers
Practice notes
In-house

Remedies for connected lender liability in consumer credit

Copyright © 2025 LexisNexis

Produced in partnership with Reanne MacKenzie of Henderson Chambers

Practice notes
In-house
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This Practice Note examines a purchaser’s causes of action and remedies where the credit in a supplier-purchaser agreement is financed by a third party. The Consumer Credit Act 1974 (CCA 1974) provides that in certain instances where there is a connection between the supplier of goods and services and the creditor, the borrower will be able to seek a remedy against the creditor under CCA 1974, s 75 where the supplier has made a misrepresentation or is in breach of contract. This Practice Note looks at the main requirements of section 75 and the circumstances in which it might be applied when purchasing goods or services with a credit card.

Overview

Under a contract for the sale or supply of goods or services as between a supplier and purchaser, the purchaser’s causes of action and remedies are well known. However, what is the position where the transaction is financed by a third-party creditor?

In certain debtor-creditor-supplier (or DCS) relationships, a consumer who has a claim against a supplier may have a 'like

Reanne MacKenzie
Reanne MacKenzie

Henderson Chambers

Reanne is developing a broad practice as sole and junior counsel across the full range of Chambers' specialisms including commercial litigation, group litigation, property, environmental and EU law. She gained wide experience of high value commercial litigation and arbitration during pupillage and has experience of acting for the Government, including being instructed in the Cyprus Colonial Group Litigation.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Consumer definition
What does Consumer mean?

A consumer is a person acting outside the context of a trade, business or profession, but the definition takes different meanings depending on the context in which it is used. Therefore it is important to check the relevant law or regulation such as the Consumer Rights Act 2015 (CRA 2015), the Unfair Contract Terms Act 1977, the Sale of Goods Act 1979.

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