Section 56 — Credit Contracts and Consumer Finance Act 2003: Changes that can be made

56 Changes that can be made (1) An application by a debtor under section 55 must seek to change the terms of the consumer credit contract in 1 of the following ways: (a) extending the term of the contract and reducing the amount of each payment due under the contract accordingly (without a consequential change being made to the annual interest rate or annual interest rates): (b) postponing, during a specified period, the dates on which payments are due under the contract (without a consequential change being made to the annual interest rate or annual interest rates): (c) extending the term of the contract and postponing, during a specified period, the dates on which payments are due under the contract (without a consequential change being made to the annual interest rate or annual interest rates). (2) The change that the debtor seeks— (a) must not be more extensive than is necessary to enable the debtor to reasonably expect to be able to discharge the debtor's obligations; and (b) must be fair and reasonable to both the debtor and the creditor in all the circumstances. (3) A change is not unfair or unreasonable merely because it involves a change to the agreed terms of the consumer credit contract.