CREDIT CARD VARIATION OF TERMS - Extortionate Credit Bargains

[MarkieMark]

Hi Theres hundreds of loans where the banks have done this.

 

In the last few months APR on credit cards have increased dramatically.

 

I have found a case where you can challenge this increase:-

 

Lomard Tricity Finance V Paton

 

Where the banks increased the rate when ever they wanted too.. could be a breach of the Unfair Contract Terms In Consumer Contracts Regulation 1999.

 

I would recommend you read the terms and conditions:-

 

Consumer Credit (agreements ) regulations 1983 schedule 1 paragraph 19.

 

If there is no clause that states "the circumstances in which a variation may occur " then you may have a claim that the agreement had not been executed in accordance with section 65 of the CCA 1974.

 

All the agreements I have looked at did not contain such term.

Edited February 22, 2009 by MarkieMark
adding the act

[pt2537]

All England Law Reports/1989/Volume 1 /Lombard Tricity Finance Ltd v Paton - [1989] 1 All ER 918

 

Held - It was lawful for a consumer credit contract to provide that the lender could unilaterally vary the rate of

interest in its absolute discretion subject to notice to the borrower as required by law. Such a provision did not

conflict with para 19 of Sch 1 to the 1983 regulations, since 'the circumstances in which any variation ... may occur'

did not refer to external factors such as changes in the market rates of interest which might cause a variation, and

neither the 1974 Act nor the 1983 regulations made such a provision unlawful. Accordingly, the lender was not

obliged to set out the factors which could cause him to exercise his contractual power to increase the rate of

interest. Nor was it necessary for such an agreement to state specifically that the lender had an absolute discretion

or that it could raise the interest rate for any reason whatsoever. It followed that, since the agreement between the

credit company and the defendant did not infringe para 19 of Sch 1 to the 1983 regulations, the appeal would be

allowed (see p 923 g to j and p 924 b c g, post)

 

 

Have you read the appeal judgment Mark as it seems to overrule the original judgment and held that the agreement was properly executed. atleast thats what the case ive just looked at states

[MarkieMark]

Hi PT2537

 

I found the information in a book I purchased called Consumer Sales Law by Professor JK Macleod second edition 2007.

 

The information I have states the appeal was struck down and it was unfair in accordance with the UCTA section 3(2)b.

 

I looked for the full case in the net but did not find it anywhere.

 

Would you have a copy? or know where I can get it from?

 

Thanks

[pt2537]

yes i have access to the case and you are misinformed, judgment was given for Lombard for £192

[MarkieMark]

I guess I will have to find another case ....

[poppynurse]

If it's not illegal it's certainly immoral to keep ramping up the rates. I believe the FOS are looking at this practice now.

[MarkieMark]

It somes makes me wonder why the Banks need to have variable rates????

 

The payers pay for the banks cock ups?