Consumer Credit Dispute Claim

Disputes involving credit agreements are usually very complex and if you are involved in a dispute of this kind it is essential to seek legal advice as soon as possible. The Consumer Credit Act (CCA) provides protection for individuals when agreeing to most finance arrangements and an experienced solicitor will be able to advise you on the best steps to take to resolve your situation.

If you are involved in a dispute over consumer credit, perhaps with a financial institution or a retail store that offers hire purchase agreements, we can help. Contact JMW Solicitors now on 0345 872 6666 or fill in our contact form and one of our team will be in touch with you soon.

What is covered in the Consumer Credit Act?

The CCA covers the following types of agreements:

  • Loans (both secured and unsecured)
  • Credit card agreements
  • Bank loans
  • Hire purchase arrangements
  • Conditional sale agreements

How does the CCA help you?

The CCA provides strict guidelines that must be adhered to by the lender offering you credit. The credit agreement must be in writing, signed by both parties and contain all of the terms of the agreement. The company offering finance has a duty to clearly explain the terms of the credit arrangement and the level of repayments you will have to repay.

Hire purchase explained

If the agreement relates to hire purchase, then the agreement must state certain specific terms and obligations including:

1.   The purchaser cannot sell the goods until the hire purchase agreement has been settled.

2.   The purchaser has a right to terminate the agreement once half of the repayments have been made.

3.   If you have paid less than one third  of the repayments, the lender can repossess the goods without a court order. If you have paid one third of the repayments or more, the lender will need to go to court in order to repossess the goods from you.

How can JMW Solicitors help?

If the lender has failed to comply with the rules set out by the CCA we may be able to assist you in questioning and fighting the enforceability of your agreement.

For example, if you entered into a Hire Purchase agreement for a new car, once you have paid 50 per cent of the balance the lender cannot force you to keep making your repayments; you are entitled to end the agreement and return the car. If you want to return the car before 50 per cent  of the repayments have been made, you can do so but you will have to repay the balance between the repayments already made by you and 50 per cent  of the original agreement.  It is not unusual for the lender to pursue individuals for the total balance due and it may therefore important that you receive legal advice about your rights and obligations under the credit agreement.

If you can demonstrate any of the following you might be able to challenge a credit agreement:

  • A failure to advise you about your rights and the repayment terms at the outset of the agreement.
  • Non-compliant paperwork at the beginning of the agreement.
  • Failure by the lender to follow the correct termination process.
  • Failure by the lender to identify your options post termination.
  • That you were put under undue pressure/extortion by the lender post termination or following a breach of the agreement by you

Involved in a dispute with a lender?

If you are involved in a disagreement with a financial lender, credit card provider or company offering hire purchase agreements JMW Solicitors can help you bring your situation to a resolution.

Find out more about our services in this area by filling out our contact form, or by calling us now on 0345 872 6666.

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