Devils advocate time - Using a CCA Request to "Get out of paying a debt"

[Josie8]

I don't understand the moral issue here.

 

 

If the lender doesn't have a valid enforceable CCA then he/she are not lawfully allowed to charge interest and penalties on the money borrowed. Therefore the borrower does not owe that money in the first palce.

 

Parliament has then decided that if a lender breaches the CCA 1974 and as a result does not have an enforceable agreement then the Financial Penalty imposed is that they are not allowed to recover any money still outstanding on the agreement - thus balance outstanding is given to the borrower rather than the government.

 

This is not an isolated area of Parliament imposing this type of penalty. Recently new legislation was imposed that states that if a landlord does not lodge the tenants deposit in a nominated scheme then the Financial Penalty is three times the amount of the deposit payable direct to the tenant.

 

Unjust enrichment? Thats not how parliament is seeing it. Its the law and is not the case of a borrower trying to evade debts. The CCA 1974 was drafted to protect borrowers from "unscrupulous lenders" to quote Wilson.