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Unenforcable Credit Agreements - Recent Legal decision
*MF*
Posts: 3,113 Forumite
I saw this article in The Times this morning - it starts:
About 100,000 people trying to have their credit card and loan debts written off by exploiting a legal loophole will have to pay the full amounts they owe after a landmark court ruling this week.
The full article is here:
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6868968.ece
As you read the full article it (to me) it is very confusing, so I went in search of a better explanation - how could something that was agreed to be "unenforceable" now be said to be "enforceable".
I found this:
https://www.eversheds.com/uk/home/articles/index1.page?ArticleID=templatedata\Eversheds\articles\data\en\Financial_institutions\consumer_credit_agreements_07Oct09
It clarified (for me) that the article in The Times was totally misleading - but - that my understanding of what "unenforceability" means needed to be updated.
I post for two reasons:
1: I know there are and have been many posts on this subject - and I hope this post will inform those involved of this court case and its implications.
2: There are "Template Letters" in the sticky - which I suspect may need to be reviewed in the light of this decision.
Hope this helps those involved.
About 100,000 people trying to have their credit card and loan debts written off by exploiting a legal loophole will have to pay the full amounts they owe after a landmark court ruling this week.
The full article is here:
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6868968.ece
As you read the full article it (to me) it is very confusing, so I went in search of a better explanation - how could something that was agreed to be "unenforceable" now be said to be "enforceable".
I found this:
https://www.eversheds.com/uk/home/articles/index1.page?ArticleID=templatedata\Eversheds\articles\data\en\Financial_institutions\consumer_credit_agreements_07Oct09
It clarified (for me) that the article in The Times was totally misleading - but - that my understanding of what "unenforceability" means needed to be updated.
I post for two reasons:
1: I know there are and have been many posts on this subject - and I hope this post will inform those involved of this court case and its implications.
2: There are "Template Letters" in the sticky - which I suspect may need to be reviewed in the light of this decision.
Hope this helps those involved.
If many little people, in many little places, do many little things,
they can change the face of the world.
- African proverb -
they can change the face of the world.
- African proverb -
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Comments
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Is it still worthwile sending off cca requests ???
I am a little confused now.
Many thanks Stuart.0 -
It's not really changed much for those on these boards.
The creditors, CRAs and even ICO always continued to argue that technically monies would still be owed, and that nonpayment could be reported to the Credit Reference Agencies.
It still remains the fact that for a pre April 2007 regulated debt that without a signed agreement containing the prescribed terms a court is not entitled to make an order enforcing that agreement.
That is what is and remains "unenforceable" for most people.
Most people here requesting a CCA are doing it because of unreasonable legal threats and pressure from creditors and DCAs, so something that prevents them taking court action (or allows a defence) is what seems to me to be most important. After all, when you get to the stage of asking for CCAs then most DFWs will have already defaulted or otherwise harmed their credit rating.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
What happens if default has dropped off your credit file after 6 years and you are still paying the debt collection agency. If you asked for your CCA and stop paying is it correct that they cannot put another default on your credit file. However if goes to court and they win they can put a ccj.0
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If they can't produce the CCA for the pre April 2007 debts, then they cannot obtain a CCJ against you as it is unenforceable.
What will happen is a default would be raised if not done so already, and after 6 years both the debt and default will disappear in a sense. the default falls off the report, and the debt is statute barred.
In reality you still owe that money but they cannot make a claim against you.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
To date I have not defaulted on any of my credit card payments.
I was just in the process of posting cca requests.
i am really struggling to meet the minimum monthly payments now and am at a loss what to do.
If I can make the agreements unenforcable then this would be a huge weight off my mind.
Am I leaving myself open to endless court cases that I jave no money to defend??? or can I really see these agreements (all pre 2007) made unenforcable by just sending off the requests and follow up letters???
Thanks Stuart.
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The DCA can't place another default.
But yes, if they succeeded in getting a CCJ then that goes on your file for 6 years. You always have to carefully consider the consequences off stopping payments.
Saying that, most DCAs are quick to threaten court but very slow to actually do it, if at all. Especially if they can't get their hands on a valid CCA. Threats are cheaper and more profitable than risking court action.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
You do not make them unenforceable, if they cannot produce the paperwork they cannot enforce it via a CCJ and thus debt collectors. So if they lost the paperwork 4 years ago it is already unenforceable. Sending a CCA request is just finding out if they have the paperwork as they legally have to give you a copy if they have it, and they legally must produce it in court.
If they do find the paperwork at some point, and it had fair and legal terms, then they can take a CCJ against you. So the debt still exists, its only after 6 years of non payment/acknowledgement in writing does it become statute barred.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
I have 4 credit cards which I am unable to pay now. They are all pre 2007.
I have always made the payments on them and have never defaulted on any.
Can somebody please tell me what will happen when I stop paying them this month.
I am going to apply for a copy of my credit agreement to all 4 tomorrow.
What will happen if some of them produce this and I am still not able to make any payments to them.
I realise that a ccj is the most likely outcome but what will this mean in regards to paying the outstanding balance off?
Does the court make an order for you to pay a certain amount monthly??
Sorry to sound daft but I am in the dark to the whole process and any advise is very much appreciated..
What should I do ????HELP0 -
If you fail to make payments when the account is not in dispute they have the right to place defaults on your credit file, within 6 months. You can place the account in dispute if they fail to provide a valid CCA after 14+30 (42) days and then stop making payments as they are then in default until a CCA is provided.
I think that is correct. You may wish to start your own thread on this matter thou.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0
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