Termination of Agreement Pursuant to S.99 of the Consumer Credit Act 1974


The termination of an agreement pursuant to s.99 of the Consumer Credit Act 1974 can be a confusing and daunting process. The act was introduced to provide protection to consumers who entered into credit agreements, and s.99 specifically deals with the termination of such agreements. As a professional, this article will explain the process and requirements for termination under s.99 of the Consumer Credit Act 1974.

What is the Consumer Credit Act 1974?

The Consumer Credit Act 1974 is a UK law that regulates credit agreements. It is designed to protect consumers who enter into credit agreements for the purchase of goods or services. The act outlines the requirements and responsibilities of both the lender and the borrower and ensures that consumers are not taken advantage of by lenders.

What is s.99 of the Consumer Credit Act 1974?

S.99 of the Consumer Credit Act 1974 deals specifically with the termination of a credit agreement. This section allows the borrower to terminate the agreement at any time before the final payment is due.

Requirements for termination under s.99:

In order to terminate a credit agreement under s.99, the borrower must meet certain requirements. These include:

1. Giving notice to the lender – The borrower must give written notice to the lender of their intention to terminate the credit agreement. This notice must be given at least one month before the termination date.

2. Paying off the outstanding balance – The borrower must pay off the outstanding balance of the credit agreement at the time of termination, including any interest.

3. Returning the goods – If the credit agreement is for the purchase of goods, the borrower must return the goods to the lender in good condition.

4. Meeting other obligations – The borrower must meet any other obligations outlined in the credit agreement, such as paying any fees or charges.

Effects of termination:

Once the credit agreement has been terminated under s.99, the lender must stop any further attempts to collect payment. The borrower will have no further obligation to make payments under the agreement, and the lender will not be entitled to any further interest or charges.


The termination of a credit agreement under s.99 of the Consumer Credit Act 1974 can provide consumers with much-needed protection and flexibility. By understanding the requirements and obligations, borrowers can terminate agreements when necessary and avoid being taken advantage of by lenders. As a professional, I hope this article has provided a clear and concise explanation of the termination process under s.99 of the Consumer Credit Act 1974.