Pay Day Loans UTTCR - Possible Defence??

[droddis]

I've had a bit of free time today, and my mind has been working over time, as per usual!

 

Couldn't a payday loan be considered unfair under the unfair terms in consumer contracts regulations 1999 (UTTCR).

 

5.—(1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term.

(3) Notwithstanding that a specific term or certain aspects of it in a contract has been individually negotiated, these Regulations shall apply to the rest of a contract if an overall assessment of it indicates that it is a pre-formulated standard contract.

(4) It shall be for any seller or supplier who claims that a term was individually negotiated to show that it was.

(5) Schedule 2 to these Regulations contains an indicative and non-exhaustive list of the terms which may be regarded as unfair.

Clearly other than the astonishing interest rate the contract is not individually negotiated in so far as the charges are set in stone irrelivant of the period the money is borrowed for. if i borrow £100 for 2 days i pay £25 in interest, and if i borrow £100 for 30 days i pay £25 in interest. Which is clearly unfair and biased to the loan compnay, as who needs a one month loan the day after they've been paid!

 

Maybe someone with more knowledge will be able to clarify if this correct.

 

Also sorry if this is in the wrong forum i didnt know whether to go in here or legal!

 

David

Edited December 16, 2010 by droddis

[droddis]

Sorry title should read "payday loans" my mind going faster than my fingers!