What is a regulated credit agreement?
If you have a loan, or if you have purchased goods on credit, to the value of £25,000 or less, then your lender should have provided you with a Regulated Credit Agreement. The content of the agreement has to confirm to regulations in accordance with the Consumer Credit Act 1974 and should be signed and dated by both you and the lender to be properly executed.
What is the Consumer Credit Act 1974 (CCA)?
The CCA is the legislation which explains the terms and conditions that a lender has to adopt when lending to consumers. The CCA is in place to protect consumers when arranging credit and/or purchasing goods.
What credit agreements can I have 'Audited'?
Any credit agreement between £1,000 and £25,000 that is governed by the Consumer Credit Act of 1974. The original agreement must have been signed before 4th April 2007.
Eligible agreements include;
· Credit Cards and Store Cards
· Unsecured Personal Loans
· Consolidation Loans
· Car Loans / Finance Agreements
· Secured Loans
· Hire Purchase
I am not sure if I have the original agreements anymore, I guess that means you can't help me?
Whether you have the original Credit Agreements or not we can request it for you, under the terms of the Consumer Credit Act the lender is bound to release a copy of your agreement, it is your legal right to request this information. If you do have it please do forward it on to us to asses, we may be save up to 2 months worth of time.
How long will it be before I know whether I have a claim or not?
As soon as your completed documents are received by ourselves, it should take no more than 60 days to audit your Credit Agreement. This can be quicker or may take longer as it depends on the speed of reply from the finance companies in question, we will however be chasing on a regular basis for speed of service.
Is there an upfront fee?
Depending on the option you chose, will depend on how you pay, if at all!
First option is no up front fee, if the finance is deemed enforcable (we can not write the debt off) you will not pay any further cost. If the finance is deemed unenforcable (we look to clear your debt) then a £499 fee is paid only after the debt has been settled in full for you, thus no debt for you. This is per item you wish to contest. Should you cancel at any time, there is a £250 cancellation fee.
OR
Second option is to pay £99 up front which we use to asses in depth if the finance is enforcable or not. If we deem the loan unenforcable by the provider, we will require a further £299 to proceed the case to solicitors. Should the finance be deemed enforcable at any time, you are entitled to a full refund. There is no fee on completion. This is per item of credit you wish to contest.
OR
Third option is to pay £395 upfront, per item of credit. If the finance is deemed unenforcable, this is refunded in full.
Multi-finance contest
You pay £349 up front for the first item of credit, then £149 per item of credit there after, for any debt held on the household. This is capped to a maximum of £999! So if you are looking to contest a number of different finances, this can save you a lot of money. That can be you and your partner and even siblings / parents / children at that address. This is non-refundable.
What does the fee get me?
You will receive the conclusion of the 'Audit' for each agreement setting out the grounds for litigation for each claim.
What does 'unenforceable agreement' actually mean?
It literally means that the terms of the agreement may not be enforced i.e. one of the terms of your agreement is to repay the sum borrowed so if the agreement is unenforceable you would not have to repay the outstanding amount.
I have already repaid my Credit Agreement or I have nearly finished repaying my Credit Agreements so what about the repayments already made?
In order to meet the minimum criteria to have your agreement Audited you must have an outstanding balance of at least £1000.
What happens if I pay an audit fee and then the claim is unsuccessful?
If you have paid an audit fee and the claim is deemed to be out of criteria (i.e. signed after 4th April 2007 and below £1 ,000 balance) then the agreement will not be audited and any fee paid will be returned. If the claim fits criteria and an Audit is prepared but the agreement is enforceable, meaning the lender has originated the agreement correctly, then a full refund will be made.
Will the process of auditing my credit agreement have an adverse effect on my credit score?
No, there is no impact on your credit profile by the claims company and their legal panel assessing your credit agreement to see if it is unenforceable. This is a common concern but to request your credit agreement is your legal right under the Consumer Credit Act and declaring an agreement as unenforceable (where found to be) is your right as a borrower.