There are many ways in which Loan Agreements can be challenged.
The Consumer Credit Act contains strict provisions on what regulated Agreements need to contain. If these provisions have been missed, or incorrectly stated, then there are grounds to argue the Agreement may be unenforceable. We have found many cases where regulated Agreements fail to contain what is required. This makes it possible to seek to reduce, or extinguish, any amounts apparently owed.
There are other ways in which we can look to argue a credit agreement is unenforceable:
- Identifying if the lender is statute barred from pursuing a debt
- Challenging the lawfulness of any assignment or sale of debt from one Creditor to another
- Challenging any notices sent pursuant to the Consumer Credit Act
- Analysing the conduct of the Lender and/or any intermediary by reference to the High Level Principles and Codes of Conduct established by the Financial Conduct Authority
- Utilising the unfair relationship provisions of the Consumer Credit Act
- Identifying if any secret commissions were paid out or retained
What can we do
Seth Lovis and Co have particular experience in analysing assignments of debt, challenging the validity of Consumer Credit Agreements and identifying any possible breaches of Financial Conduct Rules. We are also well versed in looking at the complex relationships between Lenders, Borrowers and Intermediaries such as brokers and identifying any activities which were carried out without a Borrowers’ consent- activities which may lead to an argument that the agreement is unfair.
We will seek to argue using consumer legislation that no interest, fees or charges can be applied to the alleged debt. In appropriate circumstances, it may also be possible to seek to recover any payments that you have made, and to challenge any adverse credit entries made as a result of the debt.
We can look to challenge the legality of any Loan Agreement regulated by the Consumer Credit Act. These may be a straightforward Loan Agreement or Credit Card. Or a Student Loan, Consolidation Loan or High Purchase Agreement such as a Car Loan.
We recently acted for a client who wished to challenge the validity of a number of credit agreements. Upon investigation, some of the Lenders were unable to confirm that the Agreements had been properly executed and contained the prescribed terms in the format required under the Consumer Credit Regulations. The Lenders agreed that they would not pursue the matter and were unable to enforce a debt of over £12,000.
We achieved a similar outcome for another client in the sum of over £10,000.
We also requested on behalf of another client Annual Statements of Account and notifications to the client of variations in Interest Rate which had been applied to the account. When the Lender was unable to properly comply with this Request we successfully sought to challenge the interest and default charges applied to the account during the period of non-compliance.
To arrange a free initial telephone consultation with one of our expert consumer debt solicitors contact us by phone on 020 7404 6565, or email us at email@example.com or complete the enquiry form to the right of this page and one of our experts will call you at your convenience.