I think this loan Agreement is valid

[richcufc]

I have checked the attached for a friend of mine and believe it is valid. I have removed names, signatures and dates. Date of signing was 16th October 2003

 

Can anyone else confirm for me?

 

The APR is rather high, could I suggest that this may be argued under unfair terms?

 

Thanks,

 

 

Richard

CCA.pdf

[42man]

Did they send you a blank one ?

[richcufc]

No I have removed all information from section 1 at the top of the agreement, this was fully completed. I have also removed the ref number from the top of the page.

 

From the bottom signature box I have removed the signatures and dates.

 

The remainder of the agreement is intact.

[PGH7447]

Bloody hell 59.8% which greedy finance company is this with?

[richcufc]

Richmond Investments

[richcufc]

bump

[PGH7447]

did the OC sign and date it?

[richcufc]

Yes it was all signed and dated. Names and dates removed to protect the innocent(or not) lol

[PGH7447]

looks good to me then sorry, hope Im wrong

[42man]

Rich it does look ok to be honest....difficult to defend this one....

 

CCA RULES FOR PRESCRIBED TERMS

CONSUMER CREDIT ACT

8.2 What if prescribed terms are missing or incorrect?

 

s127(3) provides that the court may not make an enforcement order unless a document containing all the prescribed terms of the agreement was signed by the debtor – see Q1.21.

 

If therefore any of the prescribed terms is missing, or incorrect, the agreement is not enforceable against the debtor, and the court is precluded from making an enforcement order.

 

 

8.3 What are the prescribed terms?

 

The prescribed terms specified in Sch 6 are as follows:

 

* amount of credit – see Q8.

 

* credit limit – see Q8.5

* repayments – see Q8.9.

* rate of interest – see Q8.6

 

Sch 6 was not amended by the 2004 Regulations.

IS MY AGREEMENT ENFORCEABLE( Via section 127(3) CCA1974)

PRESCRIBED TERMS FOR THE PURPOSES OF SECTIONS 61(1)(0) AND 127(3) OF THE

CONSUMER CREDIT ACT 1974 Taken from sced.6(1983/1553) regulations

(If you just want to find out, skip the bits in between the stars it’s just some extra information)

 

**What do we mean by unenforceable?

In the Consumer Credit Act section 127 there is a provision for making an agreement unenforceable if it does not contain certain pieces of information.

Subsections 1,2,3,4 state which pieces of information these are, and everything mentioned there must be included within the body of the agreement, if one is missing the agreement is unenforceable.

 

How does unenforceable differ from enforceable with a court order only?

When an agreement is unenforceable it means that the court or the judge cannot make a ruling on it. The court cannot make it enforceable.

When an agreement is enforceable only by ruling of the court it means that the agreement can be stopped by the debtor but the court has the power to re-instate it and allow the credit to continue to enforce.**

 

The Prescribed Terms are these

 

A Amount of credit

A term stating the amount of credit

 

B Repayments

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;

© 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.

 

C Rate of interest

A term stating the rate of interest to be applied to the credit issued under the agreement

D Credit limit

This may be a term or the manner in which it will be determined or that there is no credit limit.

--------------------------

 

Which of these applies to you depends on the type of agreement you have?

 

For a Running Account (credit card) agreement

 

BC and D Apply

 

For a Restricted Use Debtor Creditor Supplier

• Where the dealer is the supplier and the creditor is the one providing the finance.
  
• The money can only be used for the purpose it is given.
  
• There is no interest on the purchase (the cash price is the same as the total price)
  
• And there is no advance payment
  

A is applicable

 

For a fixed Sum Credit Agreement

A conventional credit agreement with none of the above restrictions

 

A and B apply

 

For a Hire Agreement

 

B is Applicable

 

This paper only covers section 127(3) of the Act agreements can also be unenforceable by contravention of sections 1 and4 this will be the subject of the next paper.

Please note that these Prescribed terms where not changed in any way by the 2004/1482 Ammendments although the form in which they appear on the agreement was. Subsection127(3) was repealed on the 6th of April 2007 so that unenforceability due to 127(3) will only apply to agreements executed before that date.

[richcufc]

That was my viewpoint just wondered on the APR being so high.

 

Had a second question on this one. The firm contacted my friends mother and not only discussed the account with her but she agreed to make payments to them.

 

This obviously breaks the Data Protection act in a large way. I thought I should tell my friend to SAR them for evidence and then take action against the firm. Not sure what though?

[42man]

The only other way is to work out if the figures / interest add up correctly....I know there is an allowance for a slight variation (something along the lines of +/- .5% - but maybe somebody can confirm this)....

[PGH7447]

report them to TS for this, it is totally out of order, and get her to stop the payments, the debt is not hers

[richcufc]

I checked the APR and have found the payments to be correct. I'll speak to my frined with a view to reporting to Trading Standards regarding the mother paying.

 

Thank you all.