Legal Precident Could Effect HP & Loan Challenges

Friday, 27. November 2009

There has been a surge in companies offering services that will help you to legally get you out of HP agreements and personal loans. One strategy has been to request a copy of your agreement and a statement of your account. In certain circumstances if the lender fails to provide you with either piece of information, in the past, under section 61 and 127 of the Consumer Credit Act, the contract was deemed irredeemably unenforceable and the borrower would be able to avoid further payments. However, following a landmark case, McGuffic v Royal Bank of Scotland this may not always be the case and will certainly require debtors to amend or discontinue their proceedings, something that you should take into account before proceeding down this path and paying over fees. By Graham Hill