Unenforceable credit agreements

Unenforceable credit agreements

Postby kevin » Tue Jun 07, 2011 8:42 pm

These are their rules, they have to stick to them

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/unenforceable-credit-agreements

Unenforceable credit agreements

Borrowers and hirers are able to ask creditors to send them information about their credit agreements. If information is not provided within 12 working days, the debt becomes unenforceable until they get the information they asked for.

Sections 77, 78 and 79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account and hire agreements.

Under these sections a debtor can pay £1 to get:

a copy of their agreement
copies of some of the other documents mentioned in their agreement
a statement of account.

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor:

cannot:
- make the debtor pay the debt before they're supposed to
- get a court judgment against the debtor
- take back anything hired or bought on credit, or take anything used as security in the agreement.

can:
- ask debtors to pay what they owe (No payment should be given until the items requested are received)
- send a default notice Big Deal, send two
- pass information on to a credit reference agency (ouch, that hurts...NOT!)
- pass information on to a debt collector (If the debt is in dispute, which it will be if they haven't sent the items requested, DCA's can't touch you under the Office Of Fair Trading rules)
- sell the debt to someone else (Excellent idea, they pay the debt for you.)
- take the case to court. (No case to answer, see above, they can not get a judgement against you & you have requested items not received, the debt is unenforceable until they arrive)
kevin
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