(1) Charges in relation to an agreement shall be calculated as a rate percent per annum in accordance with the formula prescribed in the Regulations.
(2) Where an agreement is entered into in contravention of this section, the consumer may, by notice in writing to the seller or owner signed by the consumer, elect to treat the agreement as void or to have his or her liability reduced by the amount included in the agreement for charges.
(3) Where the consumer elects to treat the agreement as void, the agreement shall be void and the amount paid or provided whether by cash or other consideration by or on behalf of the consumer under the agreement shall be recoverable by action as a debt due to him or her by the seller or owner.
(4) Where the consumer elects to have his or her liability reduced by the amount included in the agreement for charges, his or her liability shall be reduced by that amount and that amount may be set-off by the consumer against the amount that would otherwise be due under the agreement and to the extent to which it is not so set-off, may be recovered by action by the consumer as a debt due to him or her by the seller or owner.