The Background

The Government introduced The Consumer Credit Act 1974 in to Law in order to provide people with specific Consumer rights and to protect them from Lenders unfair practices. The Consumer Credit Act sets down very strict guidelines for the exact content and format all regulated Credit Card, Loan and other Finance Agreements must follow. These guidelines must be followed by all Lenders  

The Consumer Credit Act 1974 states that if a Lender provides Credit using a written Agreement that does not fully comply with certain parts of the Consumer Credit Act, it becomes "Unenforceable" and the Lender is unable to Legally enforce repayment by the Borrower in a Court of Law. Therefore, the borrower will not have to repay the outstanding balance and may be entitled to Claim a refund of some of their previous interest payments

However, because of changing legislation and new types of Loan products, Lenders have regularly changed the content or format of the written Credit Agreements they use to lend money. Solicitors have now discovered that some Lenders have amended the written Credit Agreements they use to lend money, to such an extent that they have failed to use the exact content or format required by the Consumer Credit Act 1974 

This area of Consumer Credit Law in relation to the Consumer Credit Act and other relevant Regulations are relatively complex. However in simple terms some of the areas which can make Credit Cards, Loans and other Finance Agreements, Unenforceable Credit Agreements include:

• NON PROVISION OF PRESCRIBED TERMS 
  The Lender did not include in the Agreement all of the information they were required to provide, in breach The Consumer Credit Act.  Read an example by CLICKING HERE

• INAPPROPRIATE EXECUTION OF AGREEMENT
  The Lender did not provide an Agreement in the format allowing correct execution, in breach of The Consumer Credit Act.  Read an example by CLICKING HERE

• MISCALCULATION OF APR's or THE TOTAL CHARGE FOR CREDIT
  The Lender did not use the correct method to calculate the Interest Rate or the Total Charge for Credit, in breach of The Consumer Credit Act.  Read an example by CLICKING HERE

• NON PROVISION OF RELEVANT DOCUMENTATION POST AGREEMENT
  The Lender is unable or unwilling to provide a copy of the Credit Agreement, in breach of The Consumer Credit Act.  Read an example by CLICKING HERE 

If you use our Solicitors to investigate your Credit Agreements Unenforceability, you will not need to know which aspects of the Consumer Credit Act or relevant Regulations your Lender has broken, our Solicitors will deal with these matters for you

However, if you do wish to study further aspects of Law surrounding these matters, you can read the following Case Law, Acts of Parliament, Statutory Instruments and Guides:

The Consumer Credit Act 1974
The Consumer Credit Act 2006
The Consumer Credit (Agreements) Regulations 1983
Wilson & Others -v- Secretary of State for Trade & Industry (House of Lords)
London North Securities v Meadows
Mahesan v Malaysia Government Officers Co-Operative Housing Society Ltd
Wilson v First County Trust
Hurstanger Ltd v Wilson v Burton 
Hovenden and Sons v Millhoff
Watchtower Investments v Payne 
Bartram and Sons v Lloyd 
Mc Ginn v. Grangewood Securities Ltd 
Consumer Credit (Total Charge for Credit) Regulations 1980
Consumer Credit (Disclosure of Information) Regulations 2004
Consumer Credit (Cancellation Notices and copies of Documents) Regulations 1983
FSA Handbook
The Banking Code
The Financial Services and Markets Act 2000 
The Data Protection Act 1998
The Data Protection Act Guide For Credit Reference Agencies
The Data Protection Act Legal Guidance
The Office of Fair Trading Credit Charges & APR Guide
The Defemation Act 1996