Unfair Contracts Terms Act 1977 Just 4 private consumers and not 4 small business

steel55

Just had a letter back from Lloyds TSB saying that because i was a small business customer the 1977 act does not apply it is only for private individuals so they cannot agree to a refund.
Can anybody please advise thank you.

esmerellda

they are correct.

However some small businesses are covered, if they are sole traders on a 'trading as' type account......but it is arguable.

Business charges rely solely on the penalty aspects of common law and sadly thats out of the equation although not entirely - the judge in the test case stated his judgement on penalties had a 'read across' to business claims. People are still being paid out though - have a read here http://www.consumeractiongroup.co.uk/forum/business-claims-bank-charges/

steel55

Thank you esmerellda, had a quick look at link looks very confusing but i will carry on.

borgbaiter

hi

theres a possibility that the business is covered if it is a "trading as" type business.

http://www.opsi.gov.uk/si/si1999/19992083.htm
this defines a consumer as ;

• ""consumer" means any natural person who, in contracts covered by these Regulations, is acting for purposes which are outside his trade, business or profession;"

my reading of this is that ltd companys and probably partnerships are excluded, but i see no reason someone trading as ceases to be a natural person.

banking i wouldnt think is, for example, a car mechanic acting for purposes within his trade business or profession.



Borgbaiter