"Signing" Online?

[seinfeld]

Hi All,

 

My first post, I hope this is the right place for it!

 

My wife signed up online for a gym membership that was never used in 2008, which I stopped the direct debit for after being made redundant.

 

It was recently sent to Credit Resolution Services (actually Harlands Services Ltd) and after receiving a Threatening Letter™, I called them and asked them to provide a signed copy of the credit agreement.

 

They have now sent me a letter stating that as my wife had entered my bank details into the direct debit mandate and checked the "I Agree" button agreeing to their terms & conditions, this constitutes signing a membership agreement - online.

 

As I understand it, my wife was to attend the gym and they would have her sign some documents as part of the induction process (I expect one of these could have been an actual credit agreement). As she did not ever attend the gym, no documents were ever physically signed.

 

Is this an enforceable agreement, or can I write back to them and say that this is not enforceable under the Consumer Credit Act 1974.

 

Many thanks for your help.

[maroondevo52]

Hello and Welcome, seinfeld.

 

As The Consumer Credit Act 1974 (Electronic Communications) Order 2004 came into force in December 2004 any online agreements entered into prior to this date still need a signed executed credit agreement.

Electronic signatures weren't considered valid until this date.

 

 

Looks like it will be enforceable.

 

Maybe worth your while having a look around the Forums, there's a thread here that may help.....

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/191751-gym-contract.html

 

Regards.

 

Scott.

[version302003]

The Consumer Credit Act 1974 (Electronic Communications) Order 2004 still requires them to produce the original agreement which should have all the info your wife agreed to at the time. It will have a tick in the box instead of a sig, none the less it still has to be dated and have the prescibed terms. Sending a blank one will not do. For example they can't simply send an agreenment with a blank sig box as it couldnt possibly the original agreement as it has to relate specifically to you.

 

It should contain all the info your wife completed at the time of agreeing. This should normally be a print out of the info entered on the website.

 

On saying that, as it was done online in 2008, it might well be enforced in the court anyway due to the cca 2006

[maroondevo52]

Agreed

 

Also it would still have to contain all of the prescribed terms to be valid.

 

 

 

S61(1)(a) CCA provides that, for a regulated agreement to be properly executed, it must contain all the prescribed terms of the agreement and conform to regulations under s60(1) – see Q1.14.

 

Reg 6(1) provides that the terms specified in Sch 6 to the Agreements Regulations are ‘prescribed terms’ for the purposes of s61(1)(a) and s127(3) – see Q8.2.

 

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

 

Regards.

 

Scott.