Uneforceable Credit Agreements That Dont Comply with Consumer Credit Act 1974 (CCA 74)
The majority of credit agreements are unenforceable because they just do not comply with the Consumer Credit Act 1974. If a credit/loan agreement is judged unenforceable the remaining payments will be stopped. You will be able to reclaim your payments and the goods you have purchased need not be returned.
How Can a Credit Agreement be Unenforceable - Your Opportunity to Legally Challenge the Enforcement of Credit Agreements
The law relating to Consumer Credit Agreements is very specific to ensure that consumers are safeguarded. If Agreements fail to meet certain prescribed terms they are unenforceable. It is estimated that a fair number of credit agreements dated before April 2007 are unenforceable. This being the case you could be entitled to a refund of excess interest, hidden charges or even a complete waiver of payments altogether.
There are many reasons a Credit Agreement can be unenforceable some of which are listed below
- The rate of interest is not shown on the agreement
- The agreement is not signed
- Number of instalments are not shown in the agreement
- Dates not in place in the agreement
- Total amount repayable not shown the agreement
- Amount of credit borrowed is not shown in the agreement
- No Signature on the agreement
- The agreement does not state correctly how the borrower will make repayments
There are many other reasons why an agreement may be unenforceable.
