ABSTRACT

The Consumer Credit Act supplements the common law rights in the case of withdrawal by a borrower or hirer. Withdrawal by a lender or owner, in the case where this arises, is governed solely by the rules of the common law. The consequences of withdrawal at common law are that the transaction is to be unravelled, any property handed over in anticipation of the contract must be returned to the party and any monies already received must be repaid. This applies to the borrower and lender equally. The financial consequences of withdrawal are the same as those of cancellation. An agreement capable of cancellation by the borrower is known as a cancellable agreement. In the case of a cancellable agreement, the lender must normally send by post or agreed form of electronic communication a further separate cancellation notice. This notice must be sent by the lender to the borrower within seven days following the making of the agreement.