key ingredients of enforceability in credit card agreements

[captain2]

I have read many threads on here and have replied to several -however I have so far not found a simple researched accurate summary of the key features needed for creditors to be able to enforce an agreement.

 

So while there may be such a list until I can find it I am going to list the issues I think are required - Key features required for enforceability of credit card debts - I will state where I am not sure and hope others can add to this or correct me where necessary -

 

1. Signature of debtor and creditor - I understand that a rubber seal or stamp can be valid for the creditor. Presumably the date is required too.

Name and address of both.

 

2. Agreement to be headed as such e.g. agreement made under 1974 CCA etc. I understand that an application could be an agreement too if it contains the key ingredients. But if 'application form' or 'reply card' is the main heading and agreement regulated by CCA etc is in subservient position what is position here ?

 

3. the interest rate - but does it have to be expressed as an APR ? How and when it is calculated and when payments are made.

 

4. the credit limit but I understand here that this may mean how is the limit set e.g. by subsequent notification on part of the creditor from time to time.

 

5. Right to cancel ? and should this ALSO be sent with the card or is it ok not to be in the agreement as long as its sent with the card ? My EGG card agreement has omitted this.

 

6. Legibility and equal prominence of terms and conditions with other sections

 

7. Terms and conditions as part of the agreement documentation and not contained in separate sheets ? My Egg card agreement is supported by separate generic terms and conditions.

 

Could any members clarify, correct, explain or add to these please ?

 

Then if a key term is missing I understand that the court has to enforce it but cannot enforce if certain terms are missing.

 

Can the ombudsman clarify the issues as has been suggested by my HSBC card where they have no signed agreement ?

 

Many questions and the key factors are not all in the CCA with subsequent amendments and clarifications.

 

What is the position with defective agreements and where the card company over a few years at e.g. 27 per cent apr will have had the total debt repaid back in less than 4 years ? Can the interest be refunded as the difference between a more reasonable rate ? If the card is enforced by the court can they also substitute a high rate with a more reasonable rate and also order a refund ?

-?

[dx100uk]

you'll get little airing by posting this in the letters template section.

 

i'll get it moved

 

BTW: if you use the search in the blue bar above, you will find all that you ask has been answered in many threads.

 

dx

[captain2]

ok - Ill leave it to you.

[GAVBU28]

I have been told/read on here, that some magistrates are ignoring these issues and just enforcing the agreements anyway. I spoke to someone last week on here who told me his application form, without key prescribed terms, was enforced by the judge on the day.

 

It’s a bit of a lottery really, depends on the judge on the day by all accounts….

 

Cabot are about to take me to court with a credit card application form from 1992, so it’s a worrying time really.

[Pinky69]

The "key Ingredients" are called prescribed terms - Terms and Conditions are separate. The prescribed terms for a credit card agreement are -1) credit limit. This does not have to be a sum of money - it usually is "We will set the limit and let you know what it is." 2)interest rate - rates for cash and purchases must be shown and 3) repayment schedule. The prescribed terms must be in the same section as the signature box - not necessarily on the same page. A section can run into 2 or more pages but they must be shown to be linked the signature box page. You'll find the format of an agreement -what must be included to identify it - in the Consumer Credit (Agreement) Regulations 1983. As long as the prescribed terms are there with the signature box, and the document is identified as yours, a judge can rule it enforceable.

 

Gav - if you start a separate thread and scan and post what Cabot sent you - cover over your personal details - we can have a look at it for enforceability.