Your Credit Agreement May Be Unenforceable

algar_2

hi,can anyone give me some advice,i have been to the Checkmyloan website and the assessment states that YOUR CREDIT AGREEMENT MAY BE UNENFORCEABLE ,i think this is because my agreement is from 1998 and it does not include the total amount of the loan when repaid,is it true this debt could be anulled,also the website wants to sell me the report for £55 or the report plus 9 letters for £110,does this sound correct ,and is it worth it,please help

rog2

Very dubious - it looks as if they are more interested in making £165.00 than giving you hard facts.
Do you actually have a problem with the agreement? Perhaps someone here can help.
If you are having problems, then maybe CCCS or National Debtline would be able to clarify things.

algar_2

hi,the problem im having is the loan company has been adding interest when i thought it had been frozen and my original loan of £9000 has now become £34000,and now they want to take me to court,i got the link to the financial agreement solution website from here and that is where i did the agreement checker,which states that the agreement is in breach the Consumer Credit Act 1974 Regulations,so i thought it was worth finding out about as it says the agreement may be unenforceable

Crown

algar wrote: »

hi,the problem im having is the loan company has been adding interest when i thought it had been frozen and my original loan of £9000 has now become £34000,and now they want to take me to court,i got the link to the financial agreement solution website from here and that is where i did the agreement checker,which states that the agreement is in breach the Consumer Credit Act 1974 Regulations,so i thought it was worth finding out about as it says the agreement may be unenforceable

That does seem to be more than a little steep for interested added charges :eek:

I would defintely get some legal advice regarding this. Have you spoke to the local CAB? Also do you have anywhere near the original £9000 that you owe them available? If you have then you could always offer them it as Full and final settlement.

I really dont know the how the Legal side of this stands but if a £9000 debt has spiralled into a 20k it seems extorniate.

http://www.nationaldebtline.co.uk has a lot of articles and also details on how to make full and final settlements. It could also be worth giving them a call as they offer free advice.

I wish you the best of luck with

lemma1968

It is possible for a credit agreement to be unenforceable - Under the Consumer Credit Act 1974 any credit agreement MUST contain cerain prescribed terms and conditions. But you DO NOT need to pay out a company to find if this is possible.

You should also know that not having an agreement that contains all the precribed terms only makes the loan unenforceable, IT DOES NOT ANNUL the debt. The debt would still exist but they cannot force you to pay it.

The procedure to go through is this.

You write the letter found at this link:

https://www.consumeractionactiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

You need to look at Letter N.

at the top of that letter you must write:

I DO NOT ACKNOWLEDGE ANY DEBT TO YOUR COMPANY

Yu send it with a £1 postal order via recorded delivery.

After 2 days have gone by for delivery, the bank/dca has 12 WORKING days to come up with a true copy of the agreement. If they fail to come up with it you can stop paying them for as long as their breach continues. If they continue that breach for a further 30 normal days then you can report them to Trading Standards in their area as they have committed a summary criminal offence.

If they come up with the agreement AND it does contain all the relevant prescribed terms (many do not contain them believe it or not) then you do have to pay.

Read some of the threads on the CAG website under General Debt and Debt Collectors and you will get the idea.

No CCA = No Enforceable Debt
HTH

You must realise though that this is not about debt avoidance - just asking the bank to fulfil it's obligations to you under the ACT.

You can also think about reclaiming the charges on the account by seeking information under a. S.A.R - Subject Access Request. But you need to do the CCA request first. If they give you the agreement then seek to reclaim the charges.

lemma1968

It is also irrelevant if you already have a copy of your agreement. You are asking them to provide you with a true copy of it cos if THEY can't THEY have no document to enforce.

Just so you know the loan agreement must contain the following terms:

Amount of Loan
APR
Interest Charged
full amount repayable with interest
Monthly payments
Terms and Conditions
Be signed by both the creditor and the debtor.

You may like yo see if that loan also contains PPI - my OH's loan did and it made it increase hugely. They tend to charge the PPI upfront as a separate loan added onto the principal loan, the agreement for that must also contain all the prescribed terms.

algar_2

thanks everyone i will give this a try and see where it takes me

bad_manager

There is a lot of talk going around about unfair credit agrrments with particulat reference to credit card agreements.

Could you please signify what aspects or clauses does one need to look at when trying to ascertain that the credit agreement is unfair and unenforcebale. Could you please give references with regards to the Consumer credit act of 1974.

quick and timely reply on the above shall be highly appreciated

piglet39

bad_manager wrote: »

quick and timely reply on the above shall be highly appreciated

If you search on this board/MSE forum you will find the information you require.

Piglet

lemma1968

Sorry Bad Manager - not been on here for months.

If it contains ALL the details as I have listed, fully completed then its more likely than not it is valid.

If you need help, and you have a copy of the agreement, block out all personal details the scan it in and someone may be able to have a look at it for you.

lordh

Hi just had a call from an agency who say that they can wipe out my loan agreement and also my credit card due to this mis selling act but they want to charge me 540.00 for this and also take a fee 1500.00 once it has all been dealt with any ideas on how i should proceed with this and do they have any success rate and has anyone else got there loans cancelled!!!!!!!!!!! Help please