Extortionate Credit Provisions

The Department of Trade and Industry has issued a consultation paper, Extortionate Credit Provisions in the Consumer Credit Act 1974, following a recommendation that courts should have powers under the Act to reopen a credit agreement on their own initiative where they find a credit bargain is extortionate. At present agreements may only be reopened at the request of the debtor or a person who has provided security for the agreement. Copies of the consultation paper may be obtained from the DTI, telephone: 020 7215 5000 or downloaded from http://www2.dti.gov.uk/consumer/law/5.htm