Consumer Credit Act, 1995

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.