Unenforceable Credit Agreements

The following explains what Unenforceable Credit Agreements are and what happens if you are the victim of an Unenforceable Credit Agreement.

What are Unenforceable Credit Agreements?

All Credit Agreements must be compliant with the terms of the Consumer Credit Act (1974) to be legally binding. This states that all Credit Agreements must be clear and transparent in their terms and, amongst other things, specify an exact rate of APR and length of contract. If these conditions are not met then Credit Agreements may be found to be Unenforceable.

What happens if a Credit Agreement is found to be Unenforceable?

Unenforceable Credit Agreements are Agreements which, due to their terms, cannot legally be upheld by the lenders. In other words, if the Credit Agreement does not meet up to the terms and conditions of the Consumer Credit Act, then the lender cannot enforce it and the debt is wiped clear.

What types of Credit Agreements can be Unenforceable?

In order for Credit Agreements to be assessed for their enforceability, there must be at least £1000 of the balance remaining and usually have more than 12 months left to run. The types of Credit Agreement which can be tested include:

• Credit and store cards
• Secured and unsecured loans
• Consolidation loans
• Deferred loans
• Car finance agreements

How can I find out if my Credit Agreement is Unenforceable?

To find out if you are the subject of an Unenforceable Credit Agreement, the first step is to contact the team at Credit Clear on: 0800 038 2233 who will be happy to help and advise you.