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24 1995

CONSUMER CREDIT ACT, 1995

PART V

Matters Arising on Termination of Agreements or on Default

Application of Part V .

51. —This Part shall apply to any agreement other than a housing loan.

Indebtedness may be discharged before time fixed by agreement.

52. —(1) A consumer shall at any time be entitled to discharge his obligations under an agreement before the time fixed by the agreement for termination, by giving notice of termination in writing to the creditor or the owner, as the case may be, of his intention to determine the agreement and where he does so he shall be allowed by the creditor or owner, as the case may be, a reduction in the total cost of credit under the agreement calculated, subject to subsection (2), in accordance with any method or formula approved for that purpose, and different methods or formulae may be approved for different classes of agreements—

(a) by the Central Bank in the case of an agreement where the creditor or the owner, as the case may be, is a credit institution, or

(b) by the Director in any other case.

(2) The Minister, with the consent of the Minister for Finance, and after consultation with the Central Bank, may prescribe a method or formula for the reduction under subsection (1) in relation to agreements generally or any class of agreement, which shall be in lieu of any method or formula approved of under that subsection.

Reduction where amount owed becomes payable before time fixed by agreement.

53. —(1) Where, for any reason, the amount owed by a consumer under an agreement becomes payable before the time fixed by the agreement, or any sum becomes payable by him before the time so fixed, the consumer shall be entitled to a reduction in the total cost of credit calculated, subject to subsection (2), in accordance with any method or formula approved for that purpose, and different methods or formulae may be approved for different classes of agreements—

(a) by the Central Bank in the case of an agreement where the creditor or the owner, as the case may be, is a credit institution, or

(b) by the Director in any other case.

(2) The Minister, with the consent of the Minister for Finance, and after consultation with the Central Bank, may prescribe a method or formula for the reduction under subsection (1) in relation to agreements generally or any class of agreement, which shall be in lieu of any method or formula approved of under that subsection.

Limitation on right of enforcement.

54. —(1) A creditor or an owner shall not enforce a provision of an agreement by—

(a) demanding early payment of any sum,

(b) recovering possession of any goods (save where the goods are in imminent danger of being damaged or stolen), or

(c) treating any right conferred on the consumer by the agreement as determined, restricted or deferred,

unless he has served on the consumer, at least 10 days before he proposes to take any action, a notice which shall specify the following:

(i) details of the agreement sufficient to identify it;

(ii) the name and address of the creditor or owner, as the case may be;

(iii) the name and address of the consumer;

(iv) the term of the agreement to be enforced; and

(v) a statement of the action he intends to take to enforce the term of the agreement, the manner and circumstances in which he intends to take such action and the date on or after which he intends to take such action.

(2) A creditor or an owner shall not, by reason of any breach by a consumer of an agreement—

(a) determine the agreement,

(b) demand early payment of any sum,

(c) recover possession of the goods,

(d) treat any right conferred on the consumer by the agreement as determined, restricted or deferred, or

(e) enforce any security,

unless he has served on the consumer, not less than 10 days before he proposes to take any action, a notice which shall specify the following:

(i) details of the agreement sufficient to identify it;

(ii) the name and address of the creditor or owner, as the case may be;

(iii) the name and address of the consumer;

(iv) the nature of the alleged breach;

(v) either—

(I) if the breach is capable of remedy, what action is required to remedy it and the date before which that action is to be taken, which date shall be not less than 21 days after the date of service of the notice, or

(II) if the breach is not capable of remedy, the sum, if any, required to be paid as compensation for the breach and the date before which it is to be paid, which date shall be not less than 21 days after the date of service of the notice; and

(vi) information about the consequences of failure to comply with the notice.

(3) If the consumer takes the action specified under subparagraphs (v) (I) or (v) (II) of subsection (2), before the date specified for that purpose in the notice, the breach shall be treated as not having occurred, in any records maintained for information on the consumer's credit record.

(4) Notwithstanding this section, a creditor or an owner may apply to a court of competent jurisdiction in any particular case to have the provisions of this section dispensed with where the court is satisfied that it would be just and equitable to do so.

Unjustified enrichment.

55. —Where a creditor or an owner is compensated or recovers possession of goods in any action by virtue of this Act the court shall ensure that the compensation or repossession does not entail any unjustified enrichment of the creditor or the owner, as the case may be.