Unenforceable Credit Agreements
There has been significant media coverage of this topic in recent months. Lenders will argue that if a debt has been accrued it needs to be repaid & many believe this to be the case. However, if an agreement is regulated under the terms of the Consumer Credit Act 1974, there are certain rules that need to be followed by the lender to make the agreement enforceable through the courts.
The legislation was designed to protect the consumer when taking out credit & an agreement may not comply with the terms of that legislation due to a number of different reasons – such as:
- The rate of interest not shown or incorrectly stated on the agreement
- The agreement is unsigned
- The agreement does not state the amount of credit or the correct amount repayable under the agreement.
- The agreement does not state how the borrower is to fulfil their repayment obligations.
- Incorrect cancellation rights being issued
- Mis-represented or secret broker commissions.
- The mis-sale of Payment Protection style insurances
This list is not exhaustive however should give a brief flavour of what your creditors should have done to ensure that they complied with the terms of the law & areas that even the largest lenders in the UK have fallen down on. If agreements do not contain the prescribed terms detailed in the Consumer Credit Act 1974 in terms of form & content, it cannot be enforced through the courts.
Our specialist team will fully audit your agreements when received from your creditors & use all the tools at their disposal to instigate legal disputes where the documents provided show invalidity, unenforceability or are fundamentally flawed.
For more information call: 0845 658 8830
One Debt Solution
PO Box 15125
Halesowen
West Midlands
B62 2GE
Website: www.onedebtsolution.co.uk
Email: info@onedebtsolution.co.uk
Consumer Credit License Number: 597146/2
Data Protection License Number: Z995138X
Regulated by the Ministry of Justice in respect of regulated claims management services. Auth. No: CRM17394