If CCA action fails, could bank claim costs against you?

ILW

Just wondering that if you try to get a loan written off through CCA technicality and the court find in the lenders favour, could they then persue you for their costs in defending the case? It could come to tens of thousands if barristers are involved. Any thoughts?

Credit-Crunched

ILW wrote: »

Just wondering that if you try to get a loan written off through CCA technicality and the court find in the lenders favour, could they then persue you for their costs in defending the case? It could come to tens of thousands if barristers are involved. Any thoughts?

You rolls the dice, you take your chances.

ALIBOBSY

It would depend on the amount of the loan/debt they were claiming. If it is under £5000 it will likely end in the small claims court where costs (other than court fees) can't be claimed.
It is simular to the court action for reclaiming charges in that you are banking on the fact that the banks won't want to risk it in court.

The vast majority of claims don't go to court, especially if it is a low amount outstanding, but I have read of cases that did where people had the whole amount written off. Never heard of anyone accept that couple on telly who got over 100k written off but ended up losing a case and getting around 100k of court costs against them. But I reckon the banks went all out to get them as they were financial advisors and saw it as a way of getting "money for free" as opposed to people in desparation unable to pay.

Best to use the cca as a way to get extra time to pay or as a bargaining tool in negotiations regarding a full and final offer.

ali x