Don't just take our word for it
Read what the press is saying
"The court said the loan agreement was unenforceable under the Consumer Credit Act after the original loan company had wrapped insurance payments into the debt and then added interest and penalty payments to the total"
"The bill gives us the once-in-a-generation opportunity to prevent more people becoming trapped in grossly unfair credit deals."
"There are undoubtedly thousands, if not millions, of other unfair loans out there still to be checked."
"You may think that once you've signed a contract, it's legally binding, no matter what. But if the terms in the contract are judged to be unfair, you may not be bound by them."
Unenforceable Credit Agreement - What are they?
There are a lot of credit agreements that do not comply with the Consumer Credit Act of 1974. Contracts for these kind of borrowings such as loans, mortgage, credit card or hire purchase are called Unenforceable Credit Agreement.
If you have taken out a loan between £2,500 and £25,000; and the credit agreement that you signed with your lender was not drawn up appropriately then it is possible to cancel the agreement and stop making repayments.
However, for you to be able to cancel this agreement you have to have at least nine months or more repayment period left and more than £2,500 left to pay back.
If the credit agreement that you signed is found to be unenforceable, the agreement could be cancelled and no further repayments needs to be made. Any goods purchased would not have to be returned and in many cases payments made under an unenforceable agreement could be returned.
Here is an example of the kind of agreements that may fall into this category:
- Credit cards
- Mortgage
- Car loans/Finance
- Unsecured loans
- Secured loans
- Consolidation loans
- Hire purchase
Every year there are around 50 million credit agreements issued and many of which may be unenforceable.
According to FSA (Financial Services Authority), An unfair term may, for example can be:
- the lender changes the terms of the contract, without telling you why or without giving you notice as soon as possible so you can leave the contract immediately;
- bind you to hidden terms;
- exclude or limit your legal rights unfairly; or
- charge you a disproportionately large sum if you don’t fulfil any of your obligations under the contract.
These are just a few examples of terms that could be unfair.
If your agreement is found to be unenforceable, we will ask you to authorise us as your representative and we will carry it on from there. You keep 100% of all money recovered.