Extortionate Credit Bargains Law and Legal Definition

Extortionate credit bargains means a bargain made between a creditor and debtor or his/her relative on grossly exorbitant payments or that grossly contravene the ordinary principles of fair trading. In other words, a credit bargain is extortionate if it requires (a) the debtor or a relative of the debtor to make payments which are grossly exorbitant, or (b) otherwise grossly contravenes ordinary principles of fair dealing. Hence, a bargain is not extortionate merely because it is harsh and unfair. The debtor can take proceedings for re-negotiation of bargain in the county court.