Consumer Credit Act 1974

139 Reopening of extortionate agreements. U.K.

(1) A credit agreement may, if the court thinks just, be reopened on the ground that the credit bargain is extortionate—

(a) on an application for the purpose made by the debtor or any surety to the High Court, county court or sheriff court; or

(b) at the instance of the debtor or a surety in any proceedings to which the debtor and creditor are parties, being proceedings to enforce the credit agreement, any security relating to it, or any linked transaction; or

(c) at the instance of the debtor or a surety in other proceedings in any court where the amount paid or payable under the credit agreement is relevant.

(2) In reopening the agreement, the court may, for the purpose of relieving the debtor or a surety from payment of any sum in excess of that fairly due and reasonable, by order—

(a) direct accounts to be taken, or (in Scotland) an accounting to be made, between any persons,

(b) set aside the whole or part of any obligation imposed on the debtor or a surety by the credit bargain or any related agreement,

(c) require the creditor to repay the whole or part of any sum paid under the credit bargain or any related agreement by the debtor or a surety, whether paid to the creditor or any other person,

(d) direct the return to the surety of any property provided for the purposes of the security, or

(e) alter the terms of the credit agreement or any security instrument.

(3) An order may be made under subsection (2) notwithstanding that its effect is to place a burden on the creditor in respect of an advantage unfairly enjoyed by another person who is a party to a linked transaction.

(4) An order under subsection (2) shall not alter the effect of any judgment.

(5) In England and Wales an application under subsection (1)(a) shall be brought only in the county court in the case of—

(a) a regulated agreement, or

(b) an agreement (not being a regulated agreement) under which the creditor provides the debtor with fixed-sum credit not exceeding [F1 the county court limit] or running-account credit on which the credit limit does not exceed [F1 the county court limit].

[F2 (5A) In the preceding subsection “the county court limit ” means the county court limit for the time being specified by an Order in Council under [F3 section 145 of the County Courts Act 1984]as the county court limit for the purposes of that subsection.]

(6) In Scotland an application under subsection (1)(a) may be brought in the sheriff court for the district in which the debtor or surety resides or carries on business.

(7) In Northern Ireland an application under subsection (1)(a) may be brought in the county court in the case of—

(a) a regulated agreement, or

(b) an agreement (not being a regulated agreement) under which the creditor provides the debtor with fixed-sum credit not exceeding [F4 £5,000] or running-account credit on which the credit limit does not exceed [F4 £5,000].

Textual Amendments

F1 Words substituted by virtue of Administration of Justice Act 1982 (c. 53, SIF 34), s. 37, Sch. 3 paras. 2, 3(b)

F2 S. 139(5A) inserted by Administration of Justice Act 1982 (c. 53, SIF 34), s. 37, Sch. 3 para. 4(b)

F3 Words substituted by County Courts Act 1984 (c. 28, SIF 34), s. 148(1), Sch. 2 Pt. V para. 47

F4 “£5,000 ” substituted by virtue of (N.I.) S.R. 1982/122, art. 2, Sch.

Modifications etc. (not altering text)

C1 S. 139(1)(a) excluded (S.) by Bankruptcy (Scotland) Act 1985 (c. 66, SIF 66), s. 61(6)

C2 S. 139(1)(a) excluded (E.W.) by Insolvency Act 1986 (c. 45, SIF 66), s. 343(6)

C3 S. 139(1)(a) restricted (prosp.) by S.I. 1989/2405 (N.I. 19), arts. 1(2), 317(6)