Unenforceable agreements under the Consumer Credit Act

[Redletter]

I have just checked a copy of a friend's loan agreement with Yorkshire Bank and the T&C's comprise of 4 pages. The details of the amounts are on page 1 and the signatures are on page 2 does this mean the agreement is unenforceable or not????

Anybody?

THANKS

[sadoldboy]

hi, i am new to this but have also sent a letter to mbna on the25/03/2009 requesting the credit agreement and still have,nt received any reply or acknowledgement for the letter, i dont know what to do next and would like somebody to advise me on the next step, many thanks in advance.

[cds]

I would start a new thread in the mbna forum

 

 

 

cds

[Muffintop]

hya as above recommends, my thread is muffintop v mbna if you want to take a look there for starters

[Poor-Credit Borrower]

This is *not* a reply to dollydimples, but another query relevant to this thread of Unenforceable Agreements. If one is trying to challenge their loan agreement, does it actually make a difference whether the loan was signed before or after the 6th April 2007? If the loan was only slightly after that date, the agreement could still have loopholes despite the fact (as far as I know!) that the wording of contracts/agreements are supposed to have been tightened after 06/04/2007?

I have heard that it's possible to challenge even secured loans - is that feasible in some cases?

[Guest Larry1234]

This is *not* a reply to dollydimples, but another query relevant to this thread of Unenforceable Agreements. If one is trying to challenge their loan agreement, does it actually make a difference whether the loan was signed before or after the 6th April 2007? If the loan was only slightly after that date, the agreement could still have loopholes despite the fact (as far as I know!) that the wording of contracts/agreements are supposed to have been tightened after 06/04/2007?

I have heard that it's possible to challenge even secured loans - is that feasible in some cases?

 

You can Challenge Secured loans, but i would strongly recommend you speak to a proffesional company to assist you in this matter, the fact that the agreement was taken out after that date does make a difference but its not becuase they tightened the wording or anything, You can challenge this under an unfair relationship but again please seek the relevant help

[Poor-Credit Borrower]

Thanks for your reply Larry1234 (I'm not quite sure how to quote posts in my reply).

 

When I visted the Citizens Advice Bureau last summer/autumn, I was told I could possibly challenge my secured loan, but I think they did mention the 6th April 2007 date. Unfortunately I didn't actually have a copy of the agreement with me when I visited them, but have found it now.

It was dated 25th April that year.

 

I got a couple of courtesy calls from a certain firm of solicitors dealing with this, but when I told them the agreement was signed after 06/04/2007 they said they were unlikely to be able to help.

 

But, as mentioned in my posts in a related thread, there is a company that is currently challenging my debts, and the way they work they have said that it doesn't seem to make any difference how recent the debts are. But they only deal with *unsecured* debt.

Edited May 8, 2009 by Poor-Credit Borrower
Typo / misspelt word

[Guest Larry1234]

Could i ask which copmany are progressing your claim for you?

 

The enforceability of the agreement cannot be challenged on prescribed breachs etc if it has been taken out after that date, there are other ways of challenging this, i would ask your company to make it clear how they are challenging the agreement

[Poor-Credit Borrower]

Do you mean the company in the Debt Elimination plan - it is First Step Finance Limited, Stockport, Cheshire. They are challenging all my *unsecured* debts.

[dreamer3000]

Hi all,

 

I am new to this site and maybe a new thread is the better way to approach this.... (will do that also)

 

I have reclaimed bank charges etc in the past but only recently have I become aware of unenforceable credit agreements and I am keen to know more.

 

I have read through this post with interest and I assume that there are some templates to start this process off but i can't find them. Can anyone help at all?

 

I have queries with GE Money, MBNA and Egg.

 

Thank you

[Poor-Credit Borrower]

Hi all,

 

I am new to this site and maybe a new thread is the better way to approach this.... (will do that also)

 

I have reclaimed bank charges etc in the past but only recently have I become aware of unenforceable credit agreements and I am keen to know more.

 

I have read through this post with interest and I assume that there are some templates to start this process off but i can't find them. Can anyone help at all?

 

I have queries with GE Money, MBNA and Egg.

 

Thank you

 

I can't reply definitively to you, but i think it makes a difference on whether the agreement was signed before or after the 6th April 2007. You can also check whether the agreement contains all the essential information that it needs to nowadays: e.g. total amount borrowed, interest/APR, length of time it is over, total amount repayable, and I think it needs to state how much you'd need to pay if you settled the loan after a quarter, a half and three quarters of the term.

 

Hope this helps, but I think others may be able to answer better than I.

[Poor-Credit Borrower]

Second reply to dreamer3000,

 

I think GE Money have been in the news in the last couple of years (and maybe MBNA and Egg too) for unacceptable practices, so you might be able to check for any precedents on Google.

[dreamer3000]

Second reply to dreamer3000,

 

I think GE Money have been in the news in the last couple of years (and maybe MBNA and Egg too) for unacceptable practices, so you might be able to check for any precedents on Google.

 

Thank you! I will google them.

 

In response to your other thread - agreement with GE was taken out in 2006 and the cards with MBNA and Egg - 2002 ish.

 

Thank you

[amurrell]

Hi, I've been reading everyone's comments with much interest. I hope someone can help me, I have a loan with Egg which was taken out in July 2006. I requested my credit agreement in Feb this year and my cheque for £1.00 was cashed later the same month. I did not receive my credit agreement despite chasing them. I cancelled my DD in April and advised Egg that I had done so as they were in breach of the CCA 1974 section 78.

 

The beginning of this month I received a credit agreement but it was for the wrong amount and wrong APR, although my name/address etc were correct. There was also a letter with the agreement which was addressed to somebody else. Egg are now chasing me to make payments and are saying that it is there policy to collect payments whilst my complaint is being investigated. I have argued with them that until I receive the correct documents the debt is unenforceable but they are having none of it.

 

Please could somebody confirm that I have understood this correctly. Also is there a way that I can stop them from updating my credit file? Or at least stop them from harrasing as I'm getting about 5 calls a day!

 

Cheers

[steven4064]

Hi amurrell

 

Welcome to CAG.

 

I think you have understodd correctly. There is also the aditional point that the OFT guidelines on debt collection say it is an unfair practice to start collection activities whilst an acount is in dispute or a complaint is being investigated.

[the_shadow]

Further to Steven4064's response, this is taken from the OFT debt collection guidelines

 

Just write back quoting the bit below

 

 

Deceptive and/or unfair methods

2.7 Dealings with debtors are not to be deceitful and/or unfair.

2.8 Examples of unfair practices are as follows:

 

k. not ceasing collection activity whilst investigating a reasonably queried or

disputed debt.

 

S.

[phatram]

MBNA totally ignore that one!

[dolphinbaby]

i have sent off ,y letter but i have not signed it and they have returned my postal order saying i must sign it bu by law i don't need to do so.

help please?

[poindexter]

help how does this all work, i have sent my letters and enclosed a cheque for £1.00 to each, this was 28th april 09 2 cheques have been cashed only, also the one to natwest has been credited off my account balance seems weird to me, do i contact them by phone and do i continue to allow them to take direct debits?

[Muffintop]

best practice to request your cca is a postal order not a cheque as you would have to sign it.if your unsure if they have received it, send another copy this time with a postal order. unsigned.. do not sign your letter.send recorded del

[citizenB]

 

I have read through this post with interest and I assume that there are some templates to start this process off but i can't find them. Can anyone help at all?

 

I have queries with GE Money, MBNA and Egg.

 

Thank you

 

Template letters are here

 

i have sent off ,y letter but i have not signed it and they have returned my postal order saying i must sign it bu by law i don't need to do so.

help please?

 

You will find a response to the "we need a signature first" reply, here

you need letter number 19

 

 

help how does this all work, i have sent my letters and enclosed a cheque for £1.00 to each, this was 28th april 09 2 cheques have been cashed only, also the one to natwest has been credited off my account balance seems weird to me, do i contact them by phone and do i continue to allow them to take direct debits?

 

It is probably best if you cancel Direct Debits to them and pay either by standing order or using the paying in slips at the bottom of your statements. Probably best not to contact them by phone and if they phone you refuse to go through their security procedures. They shouldnt continue with the call after that.

 

A CCA non compliance letter can be found in the folloing link

 

The Consumer Forums - Debt collectors

 

Letters number 13 or 20

[Matheram]

how do i start my own thread as i want to do this with my credit card (Barclaycard) im completly new to this although i have read alot of the threads now but still think im going to struggle if they reply to see if my agreement is enforceble or not

[00greena]

EVERYONE !!!

 

this information is all dangerous in the wrong hands. I have been reading through and before everyone starts asking for thier credit agreements. Note that you signed a credit agreement which allows the organisation to recall back all the borrowed money at anytime they feel nessesary. So you risk them sending you back a copy of the agreement with a letter saying they demand the card back and the full balance in 14 days or a county court judgment!

[mkb]

EVERYONE !!!

 

this information is all dangerous in the wrong hands. I have been reading through and before everyone starts asking for thier credit agreements. Note that you signed a credit agreement which allows the organisation to recall back all the borrowed money at anytime they feel nessesary. So you risk them sending you back a copy of the agreement with a letter saying they demand the card back and the full balance in 14 days or a county court judgment!

 

 

Customers are entitled to see whether these companies have a properly executed agreement which is enforceable in a court of law. It is clearly not uncommon for some financial agreements to fall foul of this & your post suggests that you don't like people having the information they are entitled to have.

Maybe if some of these institutions would be more accomodating of customers in difficulty, those very customers would not feel the need to check the agreements.

[Matheram]

OOGreena credit card companies would have a hard time requesting full payment and demanding it within 14 days lol and on what grounds ???????? they still have to legaly give a reason for doing so. Also it makes absolutly no difference whatsoever to wheather they have to provide a legal document as requested. How would you expect that to work lol??? if there is no enforceable agreement in place how can they demand you stick to a condition on a basicaly flawed document? answer, they cant.

 

The process people are describing now would be exactly the same in any case im sure credit card companies may try this as a scare tactic. But it would be just that if the agreement was unenforceable and didnt meet proper legal requirements. and if payment wasnt made and you went to court they would still have to produce said document.

 

If these companies could produce enforceable contracts they would not waste time emplying a DCA to chase you and then wast time in court. They would send the agreement as requested and which would meet all requirements and credit card holders would simply continue paying as they should.

 

do you by any chance have any affiliation to a credit card company lol