Unenforceable Credit Agreements

[surreyscouse]

Hi,

 

I'm struggling a bit with this concept. I understand what can make an agrement unenforceable (prescribed terms) but I can't get the following things despite spending ages trying to research it a bit:

 

1. Is there a process to follow for me to challenge these agreements in course. I have already asked for a few CCA's but no company has provided them to me, they've sent me the copy of t&c's (one company admits they canot locate the agreement)

 

2. If there is a process to follow, and the agreement is unenforceable then surely any record of the agreement must be removed from my credit record?

 

3. The case of Wilson Vs First county (also sec of state) allowed the lady to keep her goods and the loan was written off, this is law so surely that can't be challenged?

 

4. What about these companies who offer to clear all of these debts, what are they doing that I can't do myself? Or, wuold I be better going to a solicitor on a no win no fee basis and let him charge all his costs to the banks?

 

5. What risks are there in challenging the banks/credit card companies etc.

 

This has all been genuinely been puzzling me for weeks so any help, advice or information would greatly appreciated. In fact, templates of letters to send/copies of court summons would be ideal as I'm ready to take on these companies now.

 

Once I start I will do a thread for each company in the relevant part of the forum for each company.

 

Many thanks.

ss

[Et Contra Pacem Regis]

No. It's not as simple as all that.

 

Firstly, "unenforceable" does not mean that the debt does not exist. It just means that it cannot be "enforced". Quite how far the concept of "enforcement" can be stretched is open to debate. It may be as limited as preventing the lender from obtaining a court order to recover the money. That would not prevent them from making adverse credit reference or pursing you for payment, though, on the other hand, it might cover those things - it's a point as yet not authoritatively decided.

 

There are cases in the works about this stuff, but so far as I know only one in the Court of Appeal, which is to do with interest on fees.

 

The risks are, at the worst, that the lenders who have refused or failed to provide section 77/78 disclosure will produce disclosure at the last possible minute before suing you for the debt. Section 77/78 default only renders the agreement unenforceable for the period of the default. Whether they would be entitled immediately on production of the necessary documents to enforce against you for payment is another open question. At worst you could end up saddled with all their default charges, and the costs of debt collection activities, and their costs in taking you to court.

 

Companies which claim to be able to write off debts are probably claims management companies. As they're not actually lawyers they're not likely to advise you fully, they're not bound by the same rules of professional conduct, and, often they'll have to pass your case on to a firm of solicitors to do the things they're not allowed to do (i.e. practicing law...) If you're going to get someone to work on your behalf, you'd be better off finding a solicitor for yourself.