Unenforceable agreements - what is the legal claim?

[LRS123]

Hi folks,

 

I'm very confused! Say, for example, I've written to the lender to get a copy of my agreement, they have sent it back and I'm now sure the agreement isn't enforceable, what is the next step?

 

Do I need to write to them explaining my reasons, perhaps through a claim form?

 

Thanks!!

[cerberusalert]

What makes you think it's unenforceable? If you post it up after removing any identifying details we'll have a look for you.

 

if you're absolutely sure it's unenforceable you can send the the 'In Dispute' letter & legally withold repayment; http://www.consumerforums.com/resources/templates-library/86-debt-collectors/582-possible-letter-when-a-questionable-agreementapplication-is-sent

[LRS123]

It's more theoretical - I'm trying to understand the process. I don't understand what all these solicitors/CMCs are claiming for once they decide an agreement is unenforceable. What are they actually initiating legal proceedings for?

[cerberusalert]

It's not the creditors, DCAs or their solicitors that decide whether an agreement is enforceable, in their mind a used piece of Andrex would be enforceable.

 

A credit agreement has to conform to the CCA 1974 and the subsequent additions, they have to be set out in a particular format and include certain prescribed terms. If it doesn't it cannot be enforced in law although a debt still exists.

 

As for them initiating proceedings on the face of a disputed or unenforceable agreement, 9 times out of 10 they do it in the hope that the debtor is ignorant of the law and/or won't defend, in which case they would win by default.

[LRS123]

It's not the creditors, DCAs or their solicitors that decide whether an agreement is enforceable, in their mind a used piece of Andrex would be enforceable.

 

A credit agreement has to conform to the CCA 1974 and the subsequent additions, they have to be set out in a particular format and include certain prescribed terms. If it doesn't it cannot be enforced in law although a debt still exists.

 

As for them initiating proceedings on the face of a disputed or unenforceable agreement, 9 times out of 10 they do it in the hope that the debtor is ignorant of the law and/or won't defend, in which case they would win by default.

 

Thanks!

When I say the solicitors 'decide', I mean in terms of interpreting the alleged breaches.

[cerberusalert]

It's all in the Act; CCA 1974 http://www.fisa.co.uk/downloads/CCA%201974.pdf

[LRS123]

It's all in the Act; CCA 1974 http://www.fisa.co.uk/downloads/CCA%201974.pdf

 

Thanks mate.

Here's where I get confused - once someone decides the agreement is unenforceable, what legal proceedings are being issued? Surely you just write to the lender saying the agreement is unenforceable and you're therefore ceasing payment, and then the onus is on the lender to go to court.

[cerberusalert]

Surely you just write to the lender saying the agreement is unenforceable and you're therefore ceasing payment, and then the onus is on the lender to go to court.

Basically yes. In most cases where the agreement is unenforceable & after a lot of arguments the creditor will concede, others will try their luck and take it to court in the hope it's heard by a sympathetic judge who will ignore statute, case-law and the House of Lords rulings.....which can/does happen, but as in life there are only two certainties....death & taxes.