Are these Credit Agreements Enforceable?

[Etheral]

Can a couple of more people have a look at this please to see if they are enforceable or not.

 

I am not 100% sure about the Egg Agreement.

But I think the other 2 are not a valid agreement.

 

 

 

 

 

Many thanks,

 

Etheral

[payback68]

Have a read of this, it maybe beneficial as your agreements posted are pretty hard to read:-

 

You might find this useful (from Peter Bard)

 

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 Pescribed 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 agreemens executed before that date.

 

Regards

 

PB68

[Pinky69]

I cannot read the Egg agreement but the other 2 are application forms only. They have none of the prescribed terms of an agreement - credit limit, interest rate and repayment schedule - they are in my view unenforceable.

[Etheral]

Hi Pinky,

 

Thanks, thats what I thought as well, I had already read what you posted on the second post, but wanted to see if others thought the same

 

I remember reading somewhere on the forum that Egg messed up their agreement forms, hence making a lot of their agreements unenforceable. But I don't remember the exact details.

 

The egg agreement they sent us is on 2 pages, the prescribed terms of an agreement i.e. credit limit, interest rate and repayment schedule are on page 1. The signiture is on page 2. But theres no mention of page 2 on page 1. I am not sure if that means the agreement is invalid? Or maybe it was something else?

 

Many thanks,

 

Etheral.