Consumer Credit Act is an act mandated to provide consumer protection from credit providers. This law is being implemented to protect consumers from deceitful creditors and from unfair credit practices. Since purchasing of goods and services through credit is widely used these days, the Consumer Credit Act can be very beneficial especially to consumers.
The Consumer Credit Act contains provisions and amendments that include the rights of consumers to access their existing credit files, the rights of consumers to cancel credit contracts and the additional protection of consumers purchases made through credit.
As a consumer who was applying for a credit and was turned, he has a right to know the reason behind the rejection for funding his purchases. At a point where a creditor rejects an application, the consumer can request from the creditor in writing his personal details that could have been used as a basis for the creditor’s decision. If the details in his credit files are proven to be faulty or not updated, the customer can request for correction in the details and ask for reconsideration for credit application.
There are several grounds under the Consumer Credit Act that the consumer can file for cancellation of credit contract. The right method in doing this is by immediately informing the creditor regarding the choice to cancel the credit contract.
The Consumer Credit Act provides additional protection for credit purchases such as having the rights for replacement or free repair when a faulty product has been purchased. This is to ensure that even consumers who purchase through credit are protected against scammers and frauds.