Is Your Credit Agreement Unenforceable?

If you took out a loan before April 2007, it is possible that your credit agreement is unenforceable. It is because it may not comply with the Consumer Credit Act of 1974. You must be wondering why the credit agreements have become unenforceable only after 2007. It is because in April 2007, changes were made to the act pertaining to the lenders' behavior. If your credit agreement is unfair it may be considered to be unenforceable.
So, what does it mean when we say that a credit agreement is unenforceable? This means you may be legally entitled not to pay off the amount of debt that you still have to pay off. It is your essential right to refuse any further payment if you find out that the terms and conditions of repayment were not clear or you were lead into a dubious contract, the terms of which emerged after you had been bound. For future reference, do not sign any agreement letter until you have thoroughly read it (even read the fine print) and you have a solid professional advice on it.
However, if you are stuck with an unfair agreement or you think you might be, the best thing to do is to contact an advisor and find out if you are eligible for a loan repayment cancellation. It is necessary to do this through a specialist who understands credit repayment policies and who is a confirmed authority on the Consumer Credit Act.
Also, always keep a copy of any contracts or agreements you sign. In this case, having a copy would consolidate your case as you can check every claim you make before you approach your creditor with it.
Many things make your loan void. If the agreement does not specify the APR rates clearly or the rate of interest is too high, you might find yourself in a position to justify the credit agreement as being unenforceable.
The credit agreement may also be unenforceable if it does not mention all the terms and conditions of repayment, especially if these terms and conditions are made known to you after you signed the contract. The contract should also mention the prescribed monthly payments and the full amount that you would be paying inclusive of the interest being charged on it.
Your credit agreement may also be considered unenforceable if your creditor failed to provide you with all the information pertaining to the loan or gave you wrong advice. In addition, your agreement may become null if the creditor did not thoroughly research and determine your capacity physiologically and financially to pay back the loan.
Now, what are the criteria you have to fulfill for applying for an unenforceable credit agreement? Firstly, the agreement must be falling in a period before April 2007. Then it is imperative that the amount of loan be between £5000 and £25000. In addition, you are only eligible to declare an agreement unenforceable if the loan exists and the remaining balance is in excess of £5000.
Simon P Jennings is a consultant. You can take his advice on Unenforceable Credit Agreement.
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