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Consumer Credit Act 1974

Consumer credit agreements.

Consumer credit agreement is an agreement between an individual (“the debtor”) and any
other person (“the creditor”) by which the creditor provides the debtor with credit of any
amount.

Meaning of credit.

In this Act “credit” includes a cash loan, and any other form of financial accommodation.

Debtor-creditor supplier agreements. Section 12

This is where the creditor and the supplier may be the same person or where the supplier has
links to a creditor who will provide credit to the supplier’s customers. (debtor)

Liability of creditor for breaches by supplier. Section 75

(1)If the debtor under a debtor-creditor-supplier agreement has, in relation to a transaction

financed by the agreement, any claim against the supplier in respect of a misrepresentation or
breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall
accordingly be jointly and severally liable to the debtor.

In a debtor-creditor-supplier agreement where the creditor and the supplier may be the same
person or where the supplier has links to a creditor who will provide credit to the supplier’s
customers. In the event of breach of contract .There are legal consequences of debtor-creditor-
supplier arrangements. These are governed by S75 Consumer Credit Act 1974which states:

If a breach occurs,

 The debtor can sue either the creditor or the supplier.

 The creditor and supplier are jointly and severally liable to the debtor
 This can be useful if the supplier, for example, goes bankrupt or refuses to accept
responsibility for the breach.