Unenforceable Credit Agreements

Doddster2010

Are these for real ? , I have asked my debt collector's Allied International for an original copy of myloan agreement with Tsb, they passed this loan on to allied as i lost my job and my new job doesn't pay as well, could someone please clarify if I can get my 25,000 loan at least reduced ??? many thanks in advance Neil

GeorgeUK

These are real, yes - but you need to watch out for companies that offer to do this for you.

You can request a copy of the credit agreement under s.77/78 of the Consumer Credit Act 1974. This may be a reproduction and not the original though. If the agreement was made before 6th April 2007, the CCA74 legislation requires that it contain certain prescribed terms and be in the prescribed form. If this is not the case then the agreement may be unenforcable.

If you were to stop payments, even due to the debt being unenforcable, they would be allowed to issue a default and this would remain on your credit file for 6 years. We only suggest this be considered if you have already defaulted and are making reduced payments or are on a Debt Management Plan.

If you are struggling to meet the monthly payments but have not defaulted, there may be other suggestions we can make with regards your expenditure/budget to enable you to make savings and make the payments less painful.

Tixy

You say you have asked for a copy of the loan agreement? was this a formal written request including the required £1 fee?
Until you have done this they do not need to end you a copy.
Once you do this and they send the CCA then you would need to look at it (or get one of the experts here to look at it) to see if it is enforceable.

As George says, if as a result of seeing the CCA and deciding it was not enforceable in court you decide to stop paying you will be defaulted and this will impact on your ability to get credit for the next 6years.
If its unenforceable it means just that, not that the your debt is not actually written off just that you cannot be taken to court.

fermi

Doddster2010 wrote: »

could someone please clarify if I can get my 25,000 loan at least reduced ??? many thanks in advance Neil

For loans £25,000 and over, the CCA does/did not apply.

robroybob

What certain prescribed terms and prescribed form?

Tixy

robroybob wrote: »

What certain prescribed terms and prescribed form?

Full info and explanation on thread linked below. Its worth reading through the first few pages so you fully understand the process and implications.
https://forums.moneysavingexpert.com/discussion/2532927

Doddster2010

Many thank's for all of your reply's, I only asked allied verbally for a copy of the agreement they said they didn't have it and I should ask tsb, I aproached a company that offers to sort these cases out with no upfront fee, only to be told it's £95 for admin charge, they have hassled me evry since lol Do i need to ask tsb direct for a copy of my agreement ? cheers Neil

Tixy

You need to formally request the agreement in writing from whoever is chasing you for money (and send the required fee).
If that is allied and they don't have it, then tough on them, they are the ones who will have to get it from tsb not you.

Although this is only if your loan is covered by the consumer credit act (as per fermi's post above)

tonywalker69

hi there,i wonder if anyone can give me some advice? i have an outstanding debt of around 7k with natwest which ws a loan i defaulted on around 4 years ago.i approached `unfair credit direct` who said for 495 quid could make the loan unenforcable as it was pre 2007,this ws due to credit agreement iregularities.anyway they said it would take around 4 months and i was to pay 165 pounds each month over a 3 month period to cover there costs,this was nearly 14 months ago and im still waiting for this loan to be made unenforcable!! they never put there promise down on paper and im beginning to understand why.i am currently repaying the debt to natwest at the rate of 70 quid a month to keep them sweet whilst this is ongoing but im starting to wonder will this debt ever be made unenforcable or have i just been had bigtime? everytime i ring them up they just say the `its with the barristers ` line so im fed up.i take it theres no way of complaining to the ministry of justice and getting my money back for these false promises? can anyone help please or is anyone in the same boat?

Tixy

A debt will never be made unenforceable by you paying money to a firm like that. Firms like that basically scam you out of upfront money and never do anything further. I doubt very much you will get your money back from them.

It either is or isn't already unenforceable by virture of what is or isn't in the credit agreement you signed when you took the loan out. You can find this out for yourself for the cost of a £1 postal order, a quid or 2 in postage costs and some time spent reading on this forum.

https://forums.moneysavingexpert.com/discussion/2532927

GeorgeUK

Tony, i suggest you look through any paperwork they sent you and see if there is a way you can get your money back. Was the payment for getting the account made unenforcable (which they have not done yet)? Or just to look into whether it may be?