MISCALCULATION OF INTEREST RATES or AMOUNT PAYABLE

One example of a Lender potentially breaching the Miscalculation of Interest Rates part or the total amount repayable part of the Consumer Credit Act is when a Lender: Details on the Credit Agreement that you originally signed the incorrect Annual Percentage Rate (APR) or details the incorrect total charge for credit 

Section 20 of the Consumer Credit Act 1974 which states: "...Regulations containing such provisions as appear to him appropriate for determining: "...the true cost to the Debtor of the credit provided..." and "...Regulations so made shall prescribe..." the "...method of calculating the rate of the total charge for credit."

Therefore, if the APR or the total amount repayable displayed on the original Credit Agreement that you signed differs from the actual APR calculated or total amount repayble calculated using the method and formula stipulated by the Secretary of State and The Office of Fair Trading, (or the correct information is not included in the Agreement) your Lender may have breached the Consumer Credit Act

If you would like to read a "simplified" guide on the way in which APR's should be calculated, you can read the 64 page guide issued by The Office of Fair Trading on behalf of the Secretary of State by clicking here. Alternatively, you can read the non simplified statutory Instrument "The Consumer Credit (Agreements) Amendment Regulations 2004 (2004 No.1482)" by clicking here. Our Solicitors Specialists choose to utilise the very latest software program when evaluating and auditing Clients Credit Agreements to determine the real APR interest rate and the total charge for credit relating to a Clients particular Credit Agreement

The growing number of people trying to persuade their Lenders to write off their unenforceable Credit Agreements has forced Lenders to make a stand against individuals. Therefore, it is now likely that if you contact your own Lender to Claim that your particular Credit Agreement is Unenforceable, they will immediately deny it and eventually suggest the only way to decide this matter is in Court. Lenders know that unfortunately, if you yourself take your Lender to Court on your own, you risk losing thousands of pounds in their Legal costs because you are unable to purchase After the Event Legal Insurance

However, if a Solicitor concludes that your Credit Agreement is unenforceable they may offer to accept your case on a No Win No Fee* basis. The Solicitors will then demand that your Lender formally agrees that your outstanding balance does not need to be repaid

If your Lender refuses, the Solicitors will take them to Court to force them to comply. If you win your case, the Solicitors will be able to reclaim their fees from the Lender and you will be entitled to keep 100% of any Compensation. Even if you lose, you will not become liable to pay any Legal costs because the Solicitors will not charge you and will also arrange After the Event Legal Insurance so that you will not have to pay the Lenders Legal costs