Consumer Debt

Consumer debt refers to money borrowed by individuals for personal, household, or family use. Understanding the different types of consumer debt is the first step towards taking control of your finances and identifying whether a debt is fair, accurate, or potentially unenforceable.

What Debts Fall Under Sections 77, 78 & 79 CCA?

Section 77 – Fixed-Sum Credit Agreements

Covers any agreement where you borrow a fixed amount and repay it in instalments.

Examples:
• Personal loans
• Car finance (HP, PCP)
• Bank loans
• Unsecured fixed-sum loans
• Some consolidation loans
• Store finance loans
• Catalogue credit (fixed-sum arrangements)

*Hire Purchase and PCP are regulated fixed-sum credit agreements — they are included and require compliance.

Section 78 – Running-Account Credit Agreements

Covers credit where the limit can be used, repaid, and used again.

Examples:
• Credit cards
• Store cards
• Online credit accounts (e.g., PayPal Credit)
• Catalogue running accounts
• Overdrafts (but special rules apply)
Overdrafts are regulated but exempt from full s78 documentation requirements — instead, they follow Part V exemptions and need:
• overdraft letter setting the limit,
• interest rate info, and
• termination notice.

Section 79 – Hire Agreements

This section applies to consumer hire, not credit.

Examples:
• Vehicle hire without an option to purchase
• Equipment hire
• Rental contracts (non-purchase)

Hire Purchase does not fall under s79 — it falls under s77 because HP involves a credit element.

Taking Control

At Freedom Financial, we provide clear, practical guides and template letters to help you understand your rights and challenge debt responsibly.
We are not a law firm or financial adviser — we offer educational self-help tools so you can act confidently and regain your financial independence.

(Freedom Financial provides general educational information only. It is not legal or financial advice.)