Credit Contracts and Consumer Finance Act 2003

30 Effect of cancellation

• (1) If a consumer credit contract is cancelled under section 27(1)(b),—

  • (a) no party is obliged or entitled to perform it further:

  • (b) every creditor must promptly—

    • (i) return any property received by him or her under the contract to the party from whom it was received; and

    • (ii) ensure that every security interest taken in connection with the contract is released (except to the extent that the security interest secures obligations of the debtor or guarantor arising otherwise than under the contract):

  • (c) no debtor or guarantor under the contract is liable to pay any part of the interest charges, fees, or charges provided for in the contract, and the creditor must repay any interest charges, fees, or charges already received by him or her:

  • (d) the debtor is liable to pay to the creditor interest charges on the unpaid balance for the period during which the credit was provided (at the same rate that would have been payable over that period if the contract had not been cancelled):

  • (e) unless the contract otherwise provides, the debtor is liable to pay to the creditor—

    • (i) any reasonable expenses necessarily incurred by the creditor in connection with the contract and the cancellation of the contract; and

    • (ii) if property is returned to a creditor that has been damaged while in the possession of a debtor, the cost of repairing the damage.

  (2) Subsection (1)(b) and (c) is subject to subsection (1)(d) and (e).

  Compare: 1981 No 27 s 23(1)