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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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Hi, I have a Fixed-Sum agreement regulated by the CCA 1974

Customer Question

Hi,

I have a Fixed-Sum agreement regulated by the CCA 1974 which was secured against my property back in January 2007
THe contract states;
A. Amount of credit £20,000
B. Amount of credit for PPI £0.00
C. Total amount of credit A + B = C
D. Duration of agreenment 180 Months
E. NNumber of monthly payments 180 Mths. (first payment to be made one month after the date of this agreement. Subsequent monthly repayments to be made on the same day each month)
F. Monthly repayment of £284.11
G. APR (variable) 16.4%
H. Cash price of PPI £0.00
I. Total charge for credit consisting of interest £28,389.80, broker fee £2,000, application assessment & completion costs £250.00 = total £31,139.80
J.Annual rate of interest (variable) 12.7%
K.Interest will be charged on the daily basis of any un-repaid credit and any unpaid part of the brokers fee, and will be paid as a part of each monthly repayment .
L. In calculating the APR no account has been taken of any variation whhich may occur in the rate or amount of interest payable. The rate of interest will vary if and whenever, after the expiry of one month from the date of this agreement, there is any change in the Barclays Bank PLc base lending rate or such other reasonable alternative base lending rate as we may select Barclays Bank Plc base lending rate is no longer available (base Rate), so that the interest will 7.50% points over Base Rate with effect from the next payment date after the Base Rate change.

The contract was signed at the brokers Alernative Funding Co-Operation Ltd , Southend -On-Sea on the 25th Jan 2007 by me Ava Foxwell and my Mother Linda Ventham.The brokers signature is dated the 30th Jan 2007 and the money was released the following day 31 January 2007. I know this because I have kept the letter.
Dear Ava and Linda
Re: Second Charge Loan

Thank you for choosing to utilise our services in this matter. We take pleasure in enclosing your Cash Back and remittance advice.

I just have a few queries with regards XXXXX XXXXX
1. Is it legal not to state Total amount Payable? (does the onus lie with us that we believed total charge for credit was the total charge i.e total amount payable) You have to manually do the maths.
2. The broker signs the contract 6 days later after we do on the 30th January. So when is the contract start date moreover does this also mean the cooling off period 7 days was not given as money is released on the 31st January?
3. Mortgage deed second charge is also dated 30th January 2007 should that not be the 25th January when we signed the contract?
4. The broker is the witness is this allowed should it not be someone with no vested interest?
5. What cash back, should this not be listed somewhere?

Hope this makes sense. Just looking over paperwork. No doubt it will be all legal.

Thanks XXXXX [email protected]
Submitted: 3 years ago.
Category: Law
Expert:  UK-Justice replied 3 years ago.
Thanks for your question, my name isXXXXX will do whatever I can to help you today.

Does it not say with a plus b - c the total amount?
Customer: replied 3 years ago.

Hi


 


No it doesn't


 


It just lists as previously stated in Key Financial Information


A. amount of credit to be released to you £20,000


B. amount of credit fro PPI £0.00


C. Total amount of credit (A+B) = £20,000


D. Duration of agreement 180 mths


 


Other Financial Information


H. Cash price of PPI £0.00


I. Total Charge of credit consisting of


Interest £28,389.80


Broker fee £2,500 mis typed it earlier as £2000


Application Assessment & Completion Costs £250.00


Total £31,139.80


 


Actually the total amount payable is £51,139.80 but it doesn't state the total amount payable anywhere.

Expert:  UK-Justice replied 3 years ago.

For a credit agreement to be enforceable in a court of law it must contain a number of prescribed terms. If any contract is missing any of these prescribed terms then it can be deemed ‘unenforceable’ and the debt cannot legally be collected by the lender.

In section 127(3) of the Consumer Credit Act 1974 it clearly states;

(3) The court shall not make an enforcement order under section 65(1) if section 61(1) (a)(signing of agreements) was not complied with unless a document (whether or not in the prescribed form and complying with regulations under section 60(1)) itself containing all the prescribed terms of the agreement was signed by the debtor or hirer (whether or not in the prescribed manner).

Here is an overview of the requirements of section 127(3) of the Consumer Credit Act 1974. For a credit agreement to be enforceable it must contain the following prescribed terms;

1) Amount of credit
There must be a term on the agreement which states the amount of credit which has been issued

2) Credit Limit
The agreement must include regarding a credit limit or if a credit limit is not required (i.e. in the case of a loan)

3) Repayments
The agreement must contain information on how the debtor is to make repayments. This could be in the form of any of the following points;

a. Amount of repayments to be made
b. Date the repayments are to be made
c. Timing of payments
d. Frequency of payments
e. Total number of repayments (For instance, when a loan is required)
f. The power of the creditor to vary any of the above mentioned
f. The manner in which any of the above is to be determined.

If it does not comply then it may be declared unenforceable.

However the problem is they have security. No matter what you say th debt is secured and you can't get that written off.

I am sorry.



If there you have any questions or if I can help you with anything else please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience: Called to the Bar in 2007
UK-Justice and other Law Specialists are ready to help you
Customer: replied 3 years ago.


Ok. Scured debt can be permitted by the mortgage provider even though the the conditions in the contract are not entirely clear. It doesnt state the total amount payable it states the credit amount and the cost of credit to be payed but not as a total. Could it be argued that once the total charge of credit, brokers fees and completion costs are paid then no further payments are required because the contract does not stipulate this anywhere. This would be the loan paid back as we clearly had the intention to borrow and the comapny gets its interest, broker fees.


As for the contract being signed on different dates by us and the broker this did not matter I take it?


 

Expert:  UK-Justice replied 3 years ago.
In reality - no......


If there you have any questions or if I can help you with anything else please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Expert:  UK-Justice replied 3 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice

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