unenforceable loans - new court ruling

lemonjelly

http://news.bbc.co.uk/1/hi/business/8282264.stm

Looks like the courts service aren't fans of how ppi mis-selling impacts on consumers. One court has now decided that because of the ppi, a loan is unenforceable.

Could this be a fresh round of unrecoverable debts for the banks?

Could this move us closer to the end of free banking?

Will there be armies of people trying to get their debts included in this new unenforceable contracts?

What next for our financial services?

I appreciate the bank will more than likely appeal, however this can't be a confidence booster...

1984ReturnsForReal_2

In short if you paid protection for a credit card & they didnt inform you of the commission they took from it you could get the debt written off.

Thrugelmir

lemonjelly wrote: »

http://news.bbc.co.uk/1/hi/business/8282264.stm

Looks like the courts service aren't fans of how ppi mis-selling impacts on consumers. One court has now decided that because of the ppi, a loan is unenforceable.

Could this be a fresh round of unrecoverable debts for the banks?

Could this move us closer to the end of free banking?

Will there be armies of people trying to get their debts included in this new unenforceable contracts?

What next for our financial services?

I appreciate the bank will more than likely appeal, however this can't be a confidence booster...

I wouldn't be getting over excited about this ruling. As the fundamental issue was administrative.

The main ground on which Judge Smart said Mrs Thorius's credit card debt was unrecoverable was because MBNA could not provide a copy of the original signed loan agreement, which is also a requirement by the Consumer Credit Act.

lemonjelly

Thrugelmir wrote: »

I wouldn't be getting over excited about this ruling. As the fundamental issue was administrative.

Yes, I agree with you. Likely to be one of those "technicality" type issues where people can get off the hook.

I'm wondering if there will be a further rush to get similar debts wiped out? Also, will those who've had success reclaiming PPI be looking now to get their debts written off or even re-imbursed?

Thrugelmir

lemonjelly wrote: »

Yes, I agree with you. Likely to be one of those "technicality" type issues where people can get off the hook.

I'm wondering if there will be a further rush to get similar debts wiped out? Also, will those who've had success reclaiming PPI be looking now to get their debts written off or even re-imbursed?

Unless the legal advice is free or no win basis, then who can afford the risk of losing in court?

A case like this makes headlines but doesn't set a precedent that thousands will be able to follow.

PPI could be wiped out however the credit card companies will merely increase their interest rates to cover default losses. Nothing is ever free. Close one door another opens.

lemonjelly

Thrugelmir wrote: »

Unless the legal advice is free or no win basis, then who can afford the risk of losing in court?

A case like this makes headlines but doesn't set a precedent that thousands will be able to follow.

PPI could be wiped out however the credit card companies will merely increase their interest rates to cover default losses. Nothing is ever free. Close one door another opens.

I suppose it could create a new ambulance chaser type industry? I see the claim was after all handled by a claims management company.

Thrugelmir

lemonjelly wrote: »

I suppose it could create a new ambulance chaser type industry? I see the claim was after all handled by a claims management company.

No doubt it exists already.