Open University Postgraduate Module loan, contract unlawful under consumer credit act?

RacheyH

Hi,

I'm thinking of taking the open university to small claims court as I withdrew from one of their postgraduate engineering modules, and they are charging me the full fee.  I paid for the module by taking the OUBUSA loan.  Now as this is a loan, I am protected by the consumer credit act.  However the module contract stipulates that the full module cost is payable on start of the module, something that the undergraduate modules don't and they use a graduated cost/time method.  Would their contract become an unfair/unenforceable contract, as it is in affect trying to make me sign away my legal rights? 

 It took several weeks to get the grasp of the content and examination methods used in this module, and it was at this point I decided to wish to change modules.  How can students be expected to decide if the service is right for them, if they have to pay the full amount immediately, and with no choice to change,  as the full fee is forfeited as soon as the module starts?

I cancelled my module about 3 weeks into the module that lasts 6 months, and I understand that therefore compensation for services rendered up to that point should be paid.  However, wouldn't the full module fee be excessive and therefore be deemed unfair?

Could someone please advise on this contract and best course of action please?

Best regards 
Rachel

[Deleted User]

It would be normal for the full fee to be payable. Courses are rarely run on a pro rata basis.

The OU contract is also separate from the CCA, which relates to the loan, not the course.

RacheyH

Well the undergraduate courses allow withdraw, and 25, 50,75 and 100% fee payable depending upon the point of withdraw. 
The OUBUSA is still part of the OU and the contract for the course is directly linked to the loan, as such the contracts are surely related, and deemed mutual contracts? The course is the service provided by the credit, and there falls under the Consumer credit act? 

sourcrates

On which part of the consumer credit act are you basing this assumption on ?

I am quite familiar with the terms of the consumer credit act, and i can tell you now that the act deliberately does not give guidence on what is or is not to be concidered fair, with regard to contracts, it would be for the courts to decide that argument.

I doubt such a case would be heard on the small claims track, it may cost you a conciderable sum of money to take this to court.

[Deleted User]

RacheyH said:

The OUBUSA is still part of the OU and the contract for the course is directly linked to the loan, as such the contracts are surely related, and deemed mutual contracts? The course is the service provided by the credit, and there falls under the Consumer credit act? 

Your finance offers section 75 protection, but that adds no additional rights as to amending the terms of the contract.  It would only offer protection in the event that the purchase - in this case the course - is not delivered as contracted.

That's not the case here.  You need to look to your course contract, not your finance agreement.
 

RacheyH

‘That the contract stipulation that all the fees are forfeited are unreasonable and can be deemed unfair. As per Schedule 2, Part 1 of the Consumer Rights Act 2015. Consumer contract terms which may be regarded as unfair: Paragraph 6: "A term which has the object or effect of requiring that the consumer decides not to conclude or perform the contract, the consumer must pay the trader a disproportionately high sum of in compensation or for services not received."’

sourcrates

You can debate this until the cows come home, only a court can rule what is fair, and what is not.

If you think you have a case, then by all means go ahead with it.

waamo

RacheyH said:

Well the undergraduate courses allow withdraw, and 25, 50,75 and 100% fee payable depending upon the point of withdraw. 
The OUBUSA is still part of the OU and the contract for the course is directly linked to the loan, as such the contracts are surely related, and deemed mutual contracts? The course is the service provided by the credit, and there falls under the Consumer credit act? 

This isn't an undergraduate course though and will have its own terms and conditions. 

RacheyH

Yes, but my argument will be that it is contractually unfair, that the consumer is unable to see the service before deciding whether to use that service, before been charged the full fee even when using a credit scheme ( and therefore the consumer credit act).

 As they have an appropriate fee compensation scheme in place with the undergraduate courses, that could be seen as a fair scheme, and the graduate contract is unfair, on this point.

RacheyH

I joined the module, and quite frankly, it was the worst planned and designed university module I have ever seen ( I have 2 bachelors degrees from Russell group universities).  I'm still in the  WhatsApp group for this module, the other students have said nothing but extremely negative comments about this module.  It has quite frankly discouraged me from using the open university. 

normanna

RacheyH

I have studied quite extensively with the OU at undergraduate, post graduate and Masters level.  There's lots of information around course content and knowledge and skills you should already have before signing up to any module.  There are opportunities to discuss your suitability beforehand and you cannot say that a student has no opportunity to assess the content and exam methods as each module has ample detail on those before you sign up.  

I don't believe you have a case to not pay what you owe citing the reason you have.  Not withstanding the finance agreement you signed up to.