Dodgy Credit Agreement / Contract - Where Do I Stand?

[Spinster]

Hi, First of all can i just say thankyou to anyone who is viewing this "thankyou" and can i also say what a great source of information this site has been for me in the past.

 

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OK - So heres my problem, my girlfriend is a member of a Karate club, she has been for some time now and and it costs £35 per month to train..

 

The catch is that in order to train you must sign-up and commit for 30 months at a time "Contract"

 

But now things have gone pear shaped, she tried to speak to the instructors and sort things out but with no luck, they dont like to be complained at... so she has left! she paid one more payment and then cancelled the Standing order...

 

"Their is so much detail to her argument for leaving but at this time not sure if that matters, but if need be i can give you more info if requested"

 

In a nutshell:-

 

She Joined - Was happy

Then Was Un-Happy

Spoke To Instructors

Was Ignored

But Due To Her Complain Was Their After Treated Different

So Left & Cancelled her Standing Order...

 

 

The Problem being, that this standing order is wrapped into a credit agreement - Like one you get from currys, comet DFS e.t.c..

 

But No Credit Is Actually Given, The Karate Club Is Not Payed Out By a Credit Company, i know this as i was an instructor once for this same club.

 

Their are 2 companys that we speak about here:

 

Welsh Coast Karate - (THE KARATE CLUB SHE TRAINS WITH)

U.P - United Proffessionals - (A Collection Agency who manage the money & take 10% for their work)

 

When a payment is sent to "U.P" they take 10% then send the remaining 90% to "Welsh Coast Karate"....

 

And if a payment fails then "U.P" send threats for non payment...

 

Basicly i just want to know where she stands as this is meant to be a credit agreement, yet know credit is given, no credit checks ate made and its not on her credit report, so does the credit agreement still hold its legal contract...

 

 

Thankyou for reading and i will really appreciate your help.

 

thankyou again...

 

SPINSTER:)

 

 

Edited June 11, 2008 by Spinster
Uplaoding Pictures

[stroke a badger]

Bump

[Spinster]

Sorry for my ignorance, but what does bump mean hehe!

 

But Thankyou For Reading

 

Spinster...

[ReasonableRon]

It might be worth checking with the OFT to see if the Karate Club has got a Consumer Credit Licence - if not then the agreement is unenforceable, although it looks dodgy as hell anyway, having been only half completed:o

[Spinster]

Thankyou So much for your reply, will deffo do that... I just know that credit wasnt given, even though its a credit agreement, i just wasnt sure if ppl can use a credit agreement as a way of legaly binding you without actually giving credit..

 

Regards,

SPINSTER

[ReasonableRon]

I think that they would try to argue that they are giving you credit - i.e. they are lending you the money to pay for the club membership, and you are paying it back by installments.

 

Having said that, the agreement as posted has been completed in such a half assed manner as to be considered laughable, and would never stand up in court. Changes to the CCA which came into force in April last year for new agreements did remove automatic unenforceability for agreements that contained errors or ommissions, but to have most of the boxes blank - even on an interest free agreement - is inexusable.

 

It may also be worth checking your credit file to make sure that they are not registering the payments there, although I doubt it.

[Spinster]

Please Help me... anyone know any loop hole i can use against them?

Cheers...

[Filthy Monkey]

There is a licence number listed on the back (454095), so it is worth checking to see if this is valid, but from what I can tell, this does not comply with the terms of the Consumer Credit Act. There is nothing to state the total amount payable, the APR or the number of payments, so it could only be enforced with a court order and I think they would struggle to get one based on this agreement. Have a look here for more information on the CCA.

[ReasonableRon]

I saw that licence number but that is the one for the finance company and NOT for the Karate Club, who would also need one if the agreement was signed on their premises (Category C - credit brokerage).

 

As I said in my previous post, the agreement is laughable and not enforceable, and I doubt it could be made enforceable with a court order.

[Spinster]

Cheers Peeps, this is really good news, i really doubt the club has one of them... but looking into the OFT stuff you posted, their is a mention of a group licence that can cover large groups so the need to obtain seperate licences isnt needed, will United Professionals who are the credit company be able to have a group licence and if so can that licence cover the Karate club?

 

Regards,

 

SPINSTER