Financial Claims


What steps do I need to take to find out if my Regulated Loan Agreement or other Credit Agreement can be challenged as being potentially unenforceable and also what do I do to make a claim for a Payment Protection Insurance mis-selling?

We aim to provide a holistic service, in order to assist you, you will be required to complete the detailed questionnaire which can be found on our website and provide details of:

• your lender
• the insurance company involved

We will also require details of the arrangement you made, including commencement date and commissions paid (if any).

Do I have to provide you with copies of my Credit Agreements?

Not always, copies can be obtained from your creditors. Sometimes we are able to obtain the agreements as alternative information which can then be used to identify the basis of your claim.

How long will the whole recovery process take and how much work will I have to do?

The length of the compensation process varies depending on the creditor and the range of legal issues that need to be investigated and for which compensation is sought.

As a guide we suggest 6 months as a starting point (many cases are successfully resolved within this period but only where the lenders voluntarily accept their mistakes and make quick amends). If however, litigation is commenced, the court then plays a key role in the 'time management' of the process.

It would be wrong to suggest (as some claims management companies do) that it is quick and easy.

How long will it take to complete the questionnaire?

This should not take you more than 10-20 minutes. When litigation commences your lawyer will be in regular contact with you to assist in the preparation of evidence in the form of written witness statements etc.

Sometimes creditors refuse or are unable to provide you with a copy of the signed Credit Agreement, what does this mean?

If your creditor cannot, or is unable to provide a signed copy of the alleged agreement, it may then become impossible for the lender to legally prove the existence of the Consumer Credit Agreement.

In those circumstances the agreement could then be treated as not 'existing', against the wishes of the lender and so it is in their interest to provide a copy if one exists.

It is important to note that even in the absence of the agreement, the 'debt' is not written off, but as mentioned above a copy agreement may not be needed in certain circumstances, say, when seeking compensation.

Is Payment Protection Insurance always bound to be mis-sold?

Not always, however from our experience in most cases where the insurance was sold together with a loan it is likely that some essential steps were not taken by your lender, when these are combined with the grossly exorbitant cost, they probably amount to a breach of fiduciary duty that the bank owed to you.

Will I be entitled to receive a refund of some or all my previous payments?

The court can make a declaration for a return of payments where it deems it just to do so, however it is important to note the law in respect of refunds for payments of unenforceable agreements is still developing, and the outcome of any claim, will depend on the court and the specific order that it is granted.

Can my lender threaten me or take me to court?

Yes, it is possible for your lender to threaten proceedings, however it makes little difference to your legal position as this remains unchanged, in any event the court will decide the final outcome.

Will writing off my credit card or loan allow my lenders to register adverse credit against me?

Prior to a court decision, your credit file will show the factual position whether in arrears or otherwise, whether or not an adverse recording is registered depends on the outcome of the court hearing and the final decision of the court.

If the court finds an agreement is an unenforceable debt, your lender will need to reflect that on any credit file, it is most unlikely that creditors will not want that type of information made available to the public and their competitors. Please note, the debt that underlies the agreement does not 'go away' even if an agreement is unenforceable, the legal effect is that a creditor cannot pursue you. (Please ask for more information if you think that you may have a counterclaim against your lender).

If the Loan Agreement is secured for example on Hire Purchase and the loan is declared unenforceable, what happens to the vehicle?

If your HP Finance Agreement is found to be unenforceable you should be able to retain ownership of the vehicle.

How much will it cost to write off my Credit Card or Loan?

We operate on a CFA basis (Conditional Fee Agreement) we normally recover your costs from the other side. Please refer to the Law Society guidance on CFA`s. For more information please click here.

Are there different rules in cases where the agreement is in joint names?

We will where necessary ensure that there is no conflict of interest before taking on a case, and in the rare cases where a conflict does not arise, we will advise the parties accordingly.

Will I still be able to take out other Credit in the future?

Creditors utilise a range of information sources including credit reference agencies and CIFAS, we can only ensure that the information held is accurate.

Can my Loan be declared unenforceable even if I am in Arrears?

Simply put, Yes.

What effect will a Debt Management Plan or IVA have on challenging one or more Credit Agreements?

If you have an IVA, it will be necessary to vary or amend the IVA to deal with the changed liabilities, and a court application may be required in order to do this.

With any informal debt management plan, any changes to the agreed pro-rata payments are much easier to bring about.

What costs will be chargeable?

We operate only on a Conditional Fee Arrangement basis, See above.

If you say that my Loan contract is unenforceable, could that be wrong?

It is unlikely, but only a court can give a definitive decision on the enforceability or otherwise of any contract.