Extortionate Credit Transactions Act (UK)

The Extortionate Credit Transactions Act 1974 is a UK law that protects consumers from unfair lending practices. It aims to prevent lenders from charging excessively high interest rates or terms that are deemed extortionate. If a transaction is found to be extortionate, it can be declared unenforceable in court, meaning the debtor may not have to repay the loan or could have the terms adjusted. Essentially, this law ensures that borrowing remains fair and prevents exploitation by unscrupulous lenders.