Right of withdrawal from a credit agreement
Produced in partnership with George Mallet, Barrister of Henderson Chambers
Practice notesRight of withdrawal from a credit agreement
Produced in partnership with George Mallet, Barrister of Henderson Chambers
Practice notes
In certain circumstances debtors may, within 14 days, withdraw from agreements regulated under the Consumer Credit Act 1974 (CCA 1974). This Practice Note explores the circumstances when withdrawal is available and the procedure to be followed.
Introduction
The right to withdrawal from regulated agreements is governed by CCA 1974, s 66A which implemented the EU Consumer Credit Directive (2008/48/EC).
Two points should be noted from the outset: first, the right of withdrawal has not substantially altered since the consumer regulation was transferred to the Financial Conduct Authority (FCA) in April 2014. However, with alterations to the legislative framework intended (HM Treasury published ‘Reforming the CCA 1974: Consultation’, on 9 December 2022, which is the first step in the latest major reform of the CCA 1974, with the ultimate aim of moving the majority of the CCA 1974 from statute to FCA rules), readers are advised to remain wary of changes to this area of the law (although with a change of UK government in July 2024, clarification on the next steps that the
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Agreement definition
What does Agreement mean?
Agreement is broadly defined under EU and UK competition law so as to include activities ranging from a legally enforceable contract between two or more parties to an informal albeit clear understanding, whether entered into in writing or verbally.
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