Unfair Credit Agreements (UCA's)
What happens next?
Should the audit of your application show a breach of the Act, then you decide if you wish to continue. We will advise you, in our opinion, what the chances of a successful claim are likely to be.
If you wish to continue then an additional agreement form will be required together with a further payment of £300. At the same time we will ask you if you require to take out an insurance policy to cover future fees should case be lost and additional fees become payable.
The one off payment for this insurance will be recoverable from you and depending on the case outcome we will endeavour to include this in any fees payable when we negotiate our fees with the provider. Your case will then be submitted to the loan or credit provider, if necessary using a firm of solicitors specialising in this area of consumer law.
The provider will either agree or disagree with our findings. If they agree they should discharge the outstanding amount on the loan/credit agreement. In these circumstances the £300 is not refundable. In addition we will negotiate with the provider a level of fees payable direct to us. Typically this will be 15% of the debt discharged by them.
Should the provider fail to meet the fees we charge we will contact you for payment, unless the fees chargeable can be covered under an indemnity insurance policy taken out on your behalf.
If the provider refuses to do anything to reduce or discharge the outstanding amount we will again take further instructions from you. This will entail consideration of Court Proceedings and you might have to appear in Court to give your understanding of the contract entered into with the provider.
However you will not have to appear in Court on your own.
What if you can't find the paperwork for the loan?
We will ask you to sign a Section 77/78 Form which is then sent to the lender requesting a copy of the original loan agreement to be returned to us. Lenders have 42 days to comply with this request causing a delay to your claim. It is always better to try and conduct a thorough search for any documents first.
Will it hurt my credit history?
No, because you are not defaulting on your loan. If it is unenforceable there is nothing negative your lender can legally place on your credit file. If your lender does enter an adverse credit rating, its removal will form part of your claim.
It sounds too good to be true?
If your lender has made a mistake and not followed the criteria set out in the Consumer Credit Act, we will find it.
I have a number of debts?
No problem we will review them all.
Can I get a rebate?
You can claim a rebate of excess interest and mis-sold PPI policies. You might be able to claim for all payments made so far if you wanted to go to Court; in most cases clients are happy to accept cancellation of debt and take no further action.
What about new loans?
We can only audit cases before the new legislation in April 2007. We can however audit and possibly make a claim for paid-off loans if they were taken out between 1st Jan 1998 and 6th April 2007.
How long does it take?
All depends on your lender - from 6 months up to 12 months is typical. You will be advised when and how to stop making payments.
What if my agreement is compliant with the consumer credit act?
You have to continue paying your loan or card agreement.
Should I stop making payments?
Until your claim is checked you must continue to make payments. When you are advised the agreement is invalid you will also be advised how and when to stop making payments. If you prefer to continue making payments to the lender you may do so. However we might not be able to recover these payments.