To those of you who have not seen the Consumer Cedit Act relating to

extortionate agreements.......

 

Extortionate credit bargains

137.—(l) If the court finds a credit bargain extortionate it may reopen the credit

agreement so as to do justice between the parties.

(2) In this section and sections 138 to 140,—

(a) “ credit agreement “ means any agreement between an individual (the “ debtor

“) and any other person (the “ creditor “) by which the creditor provides the

debtor with credit of any amount, and

(b) “ credit bargain “—

(i) where no transaction other than the credit agreement is to be taken into

account in computing the total charge for credit, means the credit agreement,

or

(ii) where one or more other transactions are to be so taken into account,

means the credit agreement and those other transactions, take together.

138.—(1) A credit bargain is extortionate if it—

(a) requires the debtor or a relative of his to make payments (whether

unconditionally, or on certain contingencies) which are grossly exorbitant, or

(b) otherwise grossly contravenes ordinary principles of fair dealing.

(2) In determining whether a credit bargain is extortionate, regard shall be had to such

evidence as is adduced concerning—

(a) interest rates prevailing at the time it was made,

(b) the factors mentioned in subsection (3) to (5), and

© any other relevant considerations.

(3) Factors applicable under subsection (2) in relation to the debtor include—

(a) his age, experience, business capacity and state of health; and

(b) the degree to which, at the time of making the credit bargain, he was under

financial pressure, and the nature of that pressure.

(4) Factors applicable under subsection (2) in relation to the creditor include—

(a) the degree of risk accepted by him, having regard to the value of any security

provided;

(b) his relationship to the debtor; and

© whether or not a colourable cash price was quoted for any goods or services

included in the credit bargain.

(5) Factors applicable under subsection (2) in relation to a linked transaction include

the question how far the transaction was reasonably required for the protection of

debtor or creditor, or was in the interest of the debtor.

73

139.—(l) A credit agreement may, if the court thinks just, be reopened on the ground

that the credit bargain is extortionate—

(a) on an application for the purpose made by the debtor or any surety to the High

Court, county court or sheriff court; or

(b) at the instance of the debtor or a surety in any proceedings to which the debtor

and creditor are parties, being proceedings to enforce the credit agreement, any

security relating to it, or any linked transition; or

© at the insistence of the debtor or a surety in other proceedings in any court where

the amount paid or payable under the credit agreement is relevant.

(2) In reopening the agreement, the court may, for the purpose of relieving the debtor

or a surety from payment of any sum in excess of that fairly due and reasonable, by

order—

(a) direct accounts to be taken, or (in Scotland) an accounting to be made, between

any persons,

(b) set aside the whole or part of any obligation imposed on the debtor or a surety

by the credit bargain or any related agreement,

© require the creditor to repay the whole or part of any sum paid under the credit

bargain or any related agreement by the debtor or a surety, whether paid to the

creditor or any other person,

(d) direct the return to the surety of any property provided for the purposes of the

security, or

(e) alter the terms of the credit agreement or any security instrument.

(3) An order may be made under subsection (2) notwithstanding that its effect is to

place a burden on the creditor in respect of an advantage unfairly enjoyed by

another person who is a party to a linked transaction.

(4) An order under subsection (2) shall not alter the effect of any judgement.

(5) In England and Wales an application under subsection (l)(a) shall be brought only

in the county court in the case of—

(a) a regulated agreement, or

(b) an agreement (not being a regulated agreement) under which the creditor

provides the debtor with fixed-sum credit not exceeding £750 or runningaccount

credit on which the credit limit does not exceed £750.

(6) In Scotland an application under subsection (l)(a) may be brought in the sheriff

court for the district in which the debtor or surety resides or carries on business.

(7) In Northern Ireland an application under subsection (l)(a) - may be brought in the

county court in the case of—

(a) a regulated agreement, or

(b) an agreement (not being a regulated agreement) under which the creditor

provides the debtor with fixed-sum credit not exceeding £300 or runningaccount

credit on which the credit limit does not exceed £300.

74

140. Where the credit agreement is not a regulated agreement, expressions used in

sections 137 to 139 which, apart from this section, apply only to regulated

agreements, shall be construed as nearly as may be as if the credit agreement were a

regulated agreement.

Thanks for posting this ... looks like it might just be handy for me.

Cagicorn, please start your own thread with your problem. This site works by people sharing their experience and knowledge for the benefit of everyone, and advice by pm is discouraged, for the protection of all involved.

Thanks, caro.

Will start my thread in due course. I need to take some steps on Monday before I share details ......

Hi everyone, joining this thread as I am hoping to use some of the valuable advice offered in here.

@ applecart : Please, I am gonna need quite a bit of advice from you as soon as I am able to PM you. If you can PM me, please, kindly do. Thanks.

Hi all,

I have been following the logbook loan threads on this forum for about a couple of days now

and have learnt quite a lot.

I have recently found myself in the jaws of a registered Loan Shark

and I am hoping to arrest the situation before it I end being a full-fledged victim of theirs.

I look forward to learning more and more.

I shall be requesting for a copy of the registered BOS on my car

but do not want to give them an idea of what steps I will be taking to keep my car.

Thanks for posting the info,

applecart.