Is a debt enforceable if the terms of the Consumer Credit Act 1974 are breached?

apm902

Sorry, I thought the CCA was created out of legislation and was meant to be legal statute. Apologies

[Deleted User]

OK. 

No problem.

Clive_Woody

apm902 said:

I took out a £12K loan Start Up Loan from a lender in 2018. I got into difficulty paying the loan back and entered into a reduced payment plan to prevent the account being defaulted. However, when I contacted the lender 9 months after paying the agreed reduced repayment plan each month, they told me that they had defaulted me. They admit to not sending the correct default notice as is required by section 88 of the CCA 1974. Whilst the default was on my file, I applied for finance to fund a purchase order I received from a Chinese client worth circa £500K. Because of the default that had been registered on my credit file without my knowledge, my application for finance was rejected. What are my legal rights? Is the debt enforceable? Can I claim compensation for the loss of opportunity to supply the Chinese client?

You were struggling to repay a £12k loan but were then looking to take on an additional £500k of borrowing. I think the default might not have been the biggest challenge with taking on new debt of this magnitude.

In future it would be worth regularly checking your credit files for any other items that you might dispute.

apm902

Thanks for your comment, Clive. It is despairing to read that the Consumer Credit Act is relatively pointless and that lenders can operate outside of practises that were  introduced to protect consumers. 

The incorrectly registered default had a very real impact on my ability to raise finance to get my business started and I could do nothing to prevent it because I knew nothing of it. 

It does seem the market is set up in support of lenders who are free to flaunt the laws without redress. Why have the CCA or the FCAs 11 Principals of Business if there’s no requirement for the lenders to abide by them. 

I should have gone to a loan shark and take my chances with my knee caps, at least he wouldn’t have registered a default against me. 

apm902

hi Sourcrates, thanks for your comment
in reference to your comment about a compliant copy of the credit agreement, I have a copy of a phone call I had with the lender who openly admitted his company did not send the correct paperwork at the beginning of the loan agreement.
Does this apply to your comment?

sourcrates

apm902 said:

hi Sourcrates, thanks for your comment
in reference to your comment about a compliant copy of the credit agreement, I have a copy of a phone call I had with the lender who openly admitted his company did not send the correct paperwork at the beginning of the loan agreement.
Does this apply to your comment?

Sec 77-79 CCA 1974 The right to request a copy of your credit agreement, and consequences of non compliance.

Look on the National Debtline website for more information, or use Google.

MinuteNoodles

You were never ever in a month of Sundays going to get £500,000 of finance as a nearly new business, especially one struggling to even repay a £12,000 loan even if you didn't have the default.

apm902

Hi MinuteNoodles, thanks for your comment.
However, the purchase order was worth £500K resale not the amount of finance required to fund it. Furthermore the finance application was guaranteed by a HNW with proof of his financial status.

SeanG79

Your file would have had an AP/AR (Arrangement to Pay Marker) if it didn't have the Default Marker and lenders treat them as the same, so irrespective of the default, you wouldn't have been able to get the new finance.

apm902

thanks for your comment Sean G79, I’m glad someone knows how the credit reference agencies score our files - everyone I’ve ever spoken to at Equifax/Experian/TransUnion etc have said they dont know how the system scores each circumstance specifically.