It has always been our opinion that when the new Consumer Credit Act was introduced in 1974, it was there to protect the Consumer. This was further supported by the British Banking Association’s guidelines issued to banks on responsible lending practices.
For years lenders chose to ignore legislation and guidelines. We have seen:
Prior to April 2007, the Consumer Credit Act did offer some protection. All credit agreements that fail to contain a signature from both the debtor and creditor were irredeemably unenforceable (that means the creditors CANNOT obtain a County Court Judgment). This applies to all agreements such as, unsecured loans, secured loans, credit cards, catalogues and hire purchase.
As we see it, if you fail to comply with the Law then you should expect to get punished. If we break the law, we are brought before a court and held accountable, so we shouldn’t feel guilty about fighting back against a creditor when our rights as a consumer are breached.
However, in 2006 the Consumer Credit Act was amended, abolishing the irredeemable unenforceability. Therefore agreements made on or after the 6th April 2007 are now enforceable only by order of the court.
The county court judge now has discretion when considering applications to be enforced. Judges have the power to dismiss enforcement orders on a number of grounds. They can also:
We are not sure how the courts will balance the apparent lack of prejudice to credit agreements post 2007. We are aware of a couple of cases where prejudice has been shown and the courts have only granted an enforcement order on conditions that the debtor or hirer is compensated for the prejudice suffered. Hardly punishment to deter creditors from breaching government legislation and guidelines!!
It appears to us that, at a time when the country is on its knees in debt, the government have taken away the only protection consumers had.
We believe our clients should not pay back debts where creditors have failed to comply with the prescribed terms of the Consumer Credit Act 1974.
If you have a loan, hire purchase agreement, credit card or catalogue, call our advisors today. It may be that your credit agreement is unenforceable!
Unlike other claims management companies, we do not charge for writing off your debts. If we are unable to write off your debts, we will be happy to discuss other options, such as debt management, bankruptcy, IVAs, debt relief orders or administration orders.