MBNA credit card agreement enforceability 27 January at 11:00AM in Credit cards 1 reply 194 views

mistermerch

Quick question regarding enforceability of a credit card agreement. Am I correct in my interpretation of section 61(1)(a) of the CCA 2006, that to be enforceable the agreement must include the credit limit, interest rate, and also the details of how and when the debt must be repaid. If one of these elements is absent (in this particular case credit limit is missing) then the agreement is unenforceable?

grumbler

I don't think that it must be in the agreement itself.

E.g. I randomly checked Barclaycard:

We set your credit limit according to your circumstances,
your account usage and history, information from other
parts of the Barclays group, information we receive from
credit reference agencies, and any other information we
think is relevant.
We’ll tell you what your credit limit is when we first open
your account. We’ll then review it from time to time.
If we change your credit limit, we’ll write to let you know.
We tell you more about your credit limit in the ‘Using your
account’ section of this agreement.

Typically, every time they inform you about the credit limit or a change you have a right to reject it or, otherwise, accept it by default.