Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Consumer definition

What does Consumer mean? A consumer is, in practice, an individual who acquires goods, services or digital content for personal use, not for the purposes of a trade, business, craft or profession. The precise meaning is statutory and context‑specific. England & Wales and Scotland: The Consumer Rights Act 2015, s2(3), defines a consumer as an individual acting for purposes wholly or mainly outside their trade, business, craft or profession (capturing mixed‑purpose purchases where the business purpose is not predominant). The Unfair Contract Terms Act 1977 instead asks whether a party “deals as consumer”, a distinct test relevant to exclusion and limitation clauses. The Sale of...

Early settlement of regulated consumer credit: rights, notices, borrower rebates, compensatory amounts and statements under the Consumer Credit Act 1974

Published by a LexisNexis Financial Services expert

Practice notes

This Practice Note sets out the situations and procedures by which a borrower can bring a credit agreement to an early close.

Introduction to early Settlement

Borrowers may terminate regulated agreements at any time by giving statutory notice and paying the sums then due, less any rebate (Consumer Credit Act 1974, s 94 (CCA 1974)). Unless the agreement is secured on land, they are entitled as of right to clear all or part of what they owe. Contracting out is prohibited; creditors cannot remove the right to early settlement or make it conditional.

When can borrowers settle early?

Borrowers under a regulated consumer credit agreement may settle some or all of the agreement at any time, provided they:

give notice to the creditor; and
pay all amounts then due under the agreement.

Notice

The CCA 1974 sets no requirements for the form or content of an early settlement notice. Except where the agreement is secured on land, the notice does not need to be in writing. It may be given at any time and take effect immediately, or from a later date. However, credit agreements frequently...

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George Mallet

Henderson Chambers

George is a leading junior with specialisms across the civil litigation spectrum. He regularly represented clients at all levels including as sole advocate in the High Court. He has appeared in both the Court of Appeal and Supreme Court. He has particular expertise in product liability claims, banking matters and group actions. He is regularly instructed by major banks, government departments and FTSE 100 companies.George specialises in complex and fact heavy products litigation. He successfully represented the Department of Health in a claim regarding defective COVID-19 PCT testing equipment ([2024] EWHC 1071 (TCC)) and vaccinations. He has represented FTSE listed manufacturers in claims regarding manufacturing and/or design defects in relegation to engineering products ([2020] EWHC 3404 (TCC)), food products, vehicle claims and agricultural/machinery matters.As Junior Counsel to the Crown (B Panel), George represents major governmental departments, including with respect to...

Web page updated on 22/05/2026

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