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What Makes A Loan Unenforceable?

Craig1
Craig1 Posts: 28 Forumite
I have seen a lot of post regarding unenforceable loan agreements, but besides the lender not being able to provide a true copy of the agreement what other reasons are there for a loan to be unenforceable?
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Comments

  • jona26
    jona26 Posts: 31 Forumite
    Have you tried reading the other threads that are already on here? Lots of info there.
    :eek: I work for a loan company - I do not post to represent the Company view or to promote their products or services. Please be nice to me!:eek:
  • Craig1
    Craig1 Posts: 28 Forumite
    Thank you for your reply jona26, I have read a lot of posts about the subject but as aforementioned they all seem to refer to the lender being unable to provide a copy of a CCA, just interested as to any other resons that a loan may be unenforceable or a link to a previous thread regarding the subject.
  • cyril82
    cyril82 Posts: 948 Forumite
    It is difficult to say or to give a comprehensive guide as to what does and what doesn't make an agreement unenforceable but in general, if the agreement predates April 2007 and was not drawn up to strictly comply with the consumer credit act then it may be unenforceable.

    Not being descriptive in terms of the type of agreement, omitting important information, particularly about your rights, stating a specific Apr but the total interest repayable equalling a higher Apr....these are just some examples of reasons i am aware of for agreements being challenged.

    Have you got a specific agreement in mind that you are thinking of challenging?
  • Craig1
    Craig1 Posts: 28 Forumite
    Hi cyril82 thank you for your comments, I am a believer in repaying what you borrow otherwise it will have a knock on effect which will ultimately be passed back on to the consumer, however I do have a loan which I believe I shouldn't have been given due to affordability grounds, I didn't lie the Bank Official did, however I did sign the agreement with a affordability assessment. It was clear from my bank statements that I could not afford the repayments, which the bank have access to as I have my main bank account with them and there personal lending dept. also gave the loan the green light.
    I cannot afford them now and I earn 7K per annum more a year then I did then.
    I have requested reduced payments which was fine for the first few months but now they keep trying to take the arrears off me.
    I'm not trying to renage on my responsibilities but would like to be able to give myself a bit of breathing space to sort my finances out.
  • cyril82
    cyril82 Posts: 948 Forumite
    Craig1 wrote: »
    Hi cyril82 thank you for your comments, I am a believer in repaying what you borrow otherwise it will have a knock on effect which will ultimately be passed back on to the consumer, however I do have a loan which I believe I shouldn't have been given due to affordability grounds, I didn't lie the Bank Official did, however I did sign the agreement with a affordability assessment. It was clear from my bank statements that I could not afford the repayments, which the bank have access to as I have my main bank account with them and there personal lending dept. also gave the loan the green light.
    I cannot afford them now and I earn 7K per annum more a year then I did then.
    I have requested reduced payments which was fine for the first few months but now they keep trying to take the arrears off me.
    I'm not trying to renage on my responsibilities but would like to be able to give myself a bit of breathing space to sort my finances out.


    The moral reasoning doesn't really interest me, it's too easy to argue morally against people who challenge agreements and equally as easy to argue that banks have no morals, and i think too many threads on here get transformed into moral arguments.

    Contrary to the impression often painted about people who challenge agreements many are just like you, happy to repay but just want some control, to have the scales tipped in their favour.

    I'd advise consulting a professional, but whether you go to a solicitor or claims company don't pay more than £100 to have the agreement looked at and be sure they are reputable. Avoid the cowboys asking £500 to assess you agreement.
  • Craig1
    Craig1 Posts: 28 Forumite
    I agree completely, there are so many posts here that get changed into personal attacks on people who are just looking for some constructive advise on a situation which is usually beyond their knowledge.

    I would be more of a mind of challenging the agreement myself if I thought that there would be any validity to my claim of knowingly lending irresponsibly. Is this a breach of any rules that the lender must abide by? I understand that banks often choose which rules they want to obey regardless of the impact that it can have on a peoples personal circumstances.
    I just don't know if I could justify spending £100 on something that I may get absolutely no benefit from, I'm not much of a gambler.
  • Malky
    Malky Posts: 694 Forumite
    Craig1 wrote: »
    It was clear from my bank statements that I could not afford the repayments.
    So why did you sign for the loan?
  • Craig1
    Craig1 Posts: 28 Forumite
    Malky wrote: »
    So why did you sign for the loan?

    I needed the money and the bank told me I could have it.
  • This is why it turns into personal attacks.

    People like the OP asking for a loan, but now claims it isn't his fault so shouldn't have to pay it back.

    OP... have you offered them all the money your borrowed back?? no doubt you want to keep it all and not pay anything in return.


    flame away. :)
    Beware of imitations e.g. Robert Sterling
  • Craig1
    Craig1 Posts: 28 Forumite
    Sorry, did you speed read this part of the thread? I am looking for constructive responses. Thank You
    Craig1 wrote: »
    I am a believer in repaying what you borrow otherwise it will have a knock on effect which will ultimately be passed back on to the consumer,
    I'm not trying to renage on my responsibilities but would like to be able to give myself a bit of breathing space to sort my finances out.
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