Are you paying back much more than you owe?
A credit agreement is an agreement where credit has been given to you. It includes credit cards, personal loans, secured loans, store cards and vehicle finance.
Did you know?
The Consumer Credit Act 1974 was introduced to protect consumers from banks and lending institutions. It sets out guidelines that must be followed by banks when providing documentation for loans and credit agreements.
You can challenge a credit agreement by asking the lender to provide a true copy of the credit agreement. Once you have this, the agreement can be examined to decide whether or not there have been any breach of the law. This could entitle you to compensation. In some cases the creditor may be unable to provide a copy of the agreement and if this is the case you would not have to repay the money due on your loan.
There are lots of ways in which lenders may have breached the law. Below are some examples:
Errors when calculating interest and incorrect APR rates.
The law says that the agreement must contain a term which sets out the rate of interest that is being applied under the agreement and that the APR rate accords with the APR that has been calculated. If this has not been set out correctly, you have an entitlement to seek the write-off of the entire outstanding balance owing under your agreement.
Failure to provide relevant documentation
If you request a copy of the executed agreement and the lender fails to provide a copy the lender cannot enforce the agreement until such time as a copy of the executed agreement has been provided to you. The lender commits an offence if the default continues for more than a month. Where the lender has lost the agreement the terms of the Consumer Credit Act have been breached. An application can be made to the court asking that the lender writes off the agreement.
Failure to disclose commissions and fees
Where a lender pays commission to a broker or other financial introducer the sums paid to the introducer should be disclosed on the loan agreement under the heading total charges for the credit. If the lender has failed to disclose the broker’s commission as part of the total charge to you for the credit then the agreement may be unenforceable.
What does is cost?
We can help you to check your Credit Agreements and see if there has been any breach in the law. Our claims experts have a great deal of success with Unenforceable Credit Agreements, which is why we feel it is fair to charge an upfront fee of £300 inclusive of vat for a new claim. If you are an existing customer you will get our discounted rate of £172.50 for any additional claims you wish to make. There are no additional fees, and we don't take a percentage of your claim money.
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