Loan Claims – Unenforceable Credit Agreements
Loan Claims – Unenforceable Credit Agreements
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Do you feel as though you have been mis-sold a loan or that the agreement between you and the lnder or finance company is unfair or unenforeable? If that’s the case, then we can let you know if you have a potential claim and are due compensation.
There are two types of claim that you may be able to make regarding a mis-sold loan or unfair loan credit agreement:
- Mis-sold Loan PPI (loan payment protection insurance)
- Unenforceable credit agreement where you can claim to have the remaining loan balance ‘written off’
There have been a lot of claims management companies come out of the woodwork recently making bold statements about being able to write off debts. Unfortunately, this has created a lot of false hope for many and led them to paying out hefty up front fees to unethical and unqualified companies.
Some agreements may well be unenforceable but getting them written off is a completely different matter. We understand that many people may not have the personal knowledge or specific expertise to discover the secret flaws in their credit agreements, let alone how to recover the rightful compensation from their provider, but working with top City Lawyers, we do.
How do I know if I can Claim Loan Compensation?
The reality is, if you don’t have specific knowledge in the area consumer credit law you probably won’t know if your loan agreement is legally enforceable or not.
Where agreements were made prior to April 2007 and a lender has not met their obligations under the prescribed terms of the Consumer Credit Act, a judge is not entitled to exercise their discretion and is compelled to rule that the loan is ‘unenforceable.’
We know what your agreement must contain and more importantly how it must be set out including any charges or additional costs incurred with the credit such as legal fees, document fees, broker fees or PPI. We will check your agreement for breaches. If your lender or finance company has fallen foul of the regulations, then the loan will be declared unenforceable, meaning the lender cannot enforce payment in a court of law.
Our experienced litigating lawyers based in the City of London are regulated by the Solicitors Regulation Authority and the Law Society. They have many years of experience in this area of consumer law and know what to look for and how to pursue a legitimate claim.
They will be able to give you practical and reliable legal advice. Many of you will also be concerned that challenging your credit agreements may prejudice your credit rating. You may also be concerned as to whether you have to continue making your re-payments. Our solicitors will advise you on all of these issues.
How does the Loan Claim Process Works
Firstly, our solicitors are prepared to review the status of your loan agreement and secondly, where they advise that it is unenforceable, to offer you their legal services on a no-win no-fee basis whether as a claimant or defendant in legal proceedings against your lender. The charge for this professional legal advice is £199 per agreement. This fee is payable direct to the solicitor.
- The solicitor will contact your lender or finance company to obtain a copy of your credit agreement
- Upon receipt of a copy of your credit agreement it will be reviewed and you will be advised whether or not it is enforceable under the Consumer Credit Act
If your credit agreement is unenforceable, our solicitor will give you full written advice. They will also notify the lender in writing requesting confirmation that you have been discharged from any further obligations in respect of the credit agreement concerned.
Furthermore, should your agreement be unenforceable but your lender still issues enforcement proceedings against you, our solicitors will offer to represent you on a ‘no win no fee’ basis to defend the claim. They may be able to obtain a letter from the lender or the court discharging you from the debt. If you are being contacted by solicitors or debt collectors they will write to them to stop further collection activity and will take all steps possible to ensure that an adverse credit rating is not made against you, although this cannot be guaranteed.
If the lender does not comply with the request to discharge you from any further obligation and you want to instigate proceedings immediately for a declaration against your Lender, our solicitor will act on a Conditional Fee Arrangement however, you will need to fund the Court fees. The Court issue fee is currently £150 and this can be reclaimed back from the lender as part of the legal fees. If you have household insurance the solicitor may need to see a copy of the policy and the terms and conditions as you may be covered for any costs in legal proceedings.
The £199 fee payable for each loan agreement that you would want considered, covers the solicitor’s fees for the request and review of each agreement and initial advice given in respect of it. The lender can also charge up to £11 per agreement to provide a copy of your agreement. For each agreement that is unenforceable the solicitor will reclaim this fee back from the lender or finance company which will be repaid to you as soon as it is received from them.
Consumer credit issues can be extremely complicated and there are a number of matters that need to be considered. You can see some useful FAQs relating to Consumer Credit Claims in our claims questions and answers section.
To enquire about making a loan claim, please call us on 0845 308 1420 or complete the form below:
* Denotes required fieldFull Name: *Tel No.:
Email Address:
Postcode:
Name of Provider / Lender:
What is the current balance (£)?:
When did you take it out?:
Did you take out payment protection insurance with it?:
– Choose one – NoNot sureYesAny other questions / comments?:
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Claims Questions & Answers
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