Consumer Credit Challenges

It was following a thorough review of the poor credit practices of lenders that the government on the recommendation of the Crowther Report introduced in the early 1970's a long and comprehensive piece of legislation, the Consumer Credit Act 1974 - it's aim and purpose was to protect consumers from the many disreputable practices of lending institutions. The Act was an all encompassing code to properly regulate lending to individuals with very limited exceptions.

Over the past three decades the complexity of the Act unfortunately served to hinder access to law by individuals and until very recently through persistence and dedication of noted individuals and organisations, clarity has been obtained through the rulings in the in Court of Appeal and the House of Lords.

Many lenders have for their own reasons have chosen to ignore the tightly prescribed rules set within the original 1974 and the subsequent 2006 Consumer Credit Acts.

Some lenders fail to comply with the rules as set out under the Act and where the courts are made aware of these breaches the courts have declared those agreements as 'unenforceable'.

The 1974 Act was reviewed recently and the lending industry lobbied Parliament to remove some protections that the original Act had given consumers.

Despite these changes the two Acts and the associated delegated legislation still provides considerable scope for consumers to lawfully challenge defective agreements.

It is worth noting that the sections of the Act that repealed were not retrospective in effect, this simply means that agreements executed before April 2007 that are defective the old section still applies.

Much misinformation has been circulated about 'writing off' debts, please note that even if successful it would be incorrect to say any such debt is 'written off' the proper conclusion is that the creditor has no lawful method of demanding payment, a subtle but important distinction.

Payment Protection Insurance

The lending industry has, for many years with the acquiescence of the regulators and of government, taken advantage of poorly informed borrowers.

Until recent campaigns and the Office of Fair Trading and the Competition Commissions reports and the belated FSA fines, individuals were and some still are being systematically mis-sold Payment Protection Insurance.

This insurance product is often not needed, nor relevant, nor appropriate and always grossly overpriced.

If you were sold insurance that either you did not want, or were misled into believing that the this would provide some element of safety or reassurance you may be entitled to make a claim for compensation.

We will advise you on several alternative methods of pursuing such claims you will be informed of these before any case for litigation is accepted.

Multiple Debt and other Complex Financial problems.

In addition to the above we are also able to advice and assist and if necessary represent you if you have financial difficulties, including mortgage problems.

If you have undertaken an IVA and want advice to see if it was appropriate in your circumstances please contact us without obligation.