Thread: egg loan and cc's

been looking through my files and I am pretty sure my Egg loan and credit card agreements are defective. I was just going to see if I could get any charges back but am now thinking should go unenforceable route or perhaps both!!

any advice would be appreciated

regards

cds

I am in the same position. When i have logged onto Egg Internet, I have found that the rate on there, and shown on my statement received earlier in the year is different to that of the agreement. Rate shown on agreement is 7.66 as the one above but Internet banking and statement both show 6.73. I have spoken to Egg

and confirmed that the rate is supposed to be fixed. Have they broken the terms of the agreement by not keeping the rate at the agreed amount. Is it therefore unenforceable?

another thing I think makes it un-enforceable is there is no total repayable
showing as per the prescribed terms, any thoughts

cds

Hi cds,

Have a read through the CAG guide to consumer credit agreements:
http://www.consumeractiongroup.co.uk...greements.html

Originally Posted by steven4064

1. A properly executed agreement is enforceable

2. An agreement that is not properly executed and was signed before 2006 is not enforceable unless it has the debtor's signature and the prescribed terms in the same document.

I don't think that "total repayable" is a prescribed term, only the following:

Originally Posted by steven4064

- A term stating how the debtor is to discharge his obligations under the agreement to make the repayments, which may be expressed by reference to a combination of any of the following--
(a) number of repayments;
(b) amount of repayments;
(c) frequency and timing of repayments;
(d) dates of repayments;
(e) the manner in which any of the above may be determined;
or in any other way, and any power of the creditor to vary what is payable.

Also the APR of 7.9% is correct as per DualCalc (though I cannot comment on paulrog9's question about the APR being changed).

Therefore I think that this loan agreement is enforceable.

Will you be posting up your Egg credit card agreement as well? Some of these lack the prescribed term "credit limit" and there are some interesting cases where people are challenging them.

section 60(1)(b)the amount and rate of the total charge for credit
(in the case of a consumer credit agreement)

could you have a look at that for me

I am not certain if a loan agreement should contain the total charge for credit to be properly executed. Either way, it may still be enforceable if it contains all the prescribed terms:-

Originally Posted by steven4064

Enforceability of Credit Agreements

.....

2. Agreements that are not properly executed

If an agreement is not properly executed as defined in section 61(1) of the Consumer Credit Act 1974 then Section 65 says that it can only be enforced by a court.
However, the Court's powers to enforce an agreement that is not properly executed and that was entered into before 2006 are limited by Section 127(3) of the Act.
This section says that an agreement that is not properly executed can only be enforced if it consists of a single document

a) signed by the debtor, and

b) has the prescribed terms

The prescribed terms for enforceability under s127(3) are given in Schedule 6of the Consumer Credit (Agreements) Regulations 1983:

For fixed sum loans (e.g. bank loans, hire purchase agreements) the agreement must contain:

- A term stating the amount of the credit

For running account agreements (e.g. credit cards) the agreement must contain:

- A term stating the credit limit or the manner in which it will be determined or that there is no credit limit.

In all cases, the agreement must contain:

- A term stating how the debtor is to discharge his obligations under the agreement to make the repayments, which may be expressed by reference to a combination of any of the following--
(a) number of repayments;
(b) amount of repayments;
(c) frequency and timing of repayments;
(d) dates of repayments;
(e) the manner in which any of the above may be determined;
or in any other way, and any power of the creditor to vary what is payable.

(For hire agreements, there are other details given in Schedules 3 and 4).

All running account credit agreements and agreements for fixed sum loans which fall within certain exemptions (Schedule 1 paragraph 9 - usually if either of the other relevant prescribed terms are missing) must also have

- A term stating the rate of any interest on the credit to be provided under the agreement

.....

Summary

1. A properly executed agreement is enforceable

2. An agreement that is not properly executed and was signed before 2006 is not enforceable unless it has the debtor's signature and the prescribed terms in the same document.

The Office of Fair Trading: Credit and hire agreements

have a look at this page about half way down

and thanks for the input

regards

Your link is the current OFT guidance, which includes requirements of the 2004 regulations. However, these regulations are rather confusingly named, as they did not come into force until 31st May 2005, and I think it was at this point that "total charge for credit" was required.

http://www.berr.gov.uk/files/file42398.pdf
Paragraphs 9 and 10 of Schedule 1 of the Regulations have been amended so that all agreements, will have to show a total charge for credit, the rate of interest and give a statement explaining how and when interest charges are calculated.

bit of a minefield this, just have to keep looking

thanks all