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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Under the consumer credit act can only accredited individuals

Customer Question

Under the consumer credit act can only accredited individuals lend money and charge interest?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this.
Alex Watts : Is the person doing it just once to a friend or on a regular basis?
JACUSTOMER-jk63748n- : He was a friend who lent me money
Alex Watts : How much?
JACUSTOMER-jk63748n- : £140,000
Alex Watts : Did you agree to interest up front?
Alex Watts : when was the loan taken out?
JACUSTOMER-jk63748n- : The loan was taken out in 2013 and the agreement was signed last year. I did agree to the interest at the time.
Alex Watts : Has a friend done it is a one off? What was the rate?
Alex Watts : is there a dispute currently ?
JACUSTOMER-jk63748n- : The rate is 4% pa
JACUSTOMER-jk63748n- : The rate is 4%pa
Alex Watts : Ok, is there a dispute?
JACUSTOMER-jk63748n- : The individual has commenced possession proceedings as the loan was secured against my house
Alex Watts : Ok, are you in arrears?
JACUSTOMER-jk63748n- : No
Alex Watts : On what basis have the possession proceedings been started?
JACUSTOMER-jk63748n- : I have no idea
JACUSTOMER-jk63748n- : So far you have not actually given me any advice
Alex Watts : Yes I know, I was unable to give you an answer until I had more information
Alex Watts : The court proceedings should say why they are enforcing the charge.
Alex Watts : But in short if there was an agreement between you and you are not in arrears they can not seek to enforce the charge.
Alex Watts : Basically if you have stuck to the agreement the court is not going to order enforcement and indeed you can defend it on the basis the contract has not been breached.
Alex Watts : But to answer your question - yes.
Alex Watts : This is a contract.
Alex Watts : A person can lend money to another as a matter of contract.
Alex Watts : It is only where this person lends to anyone other than a friend, ie it is their business to do so would they need a consumer credit licence.
Alex Watts : But a one off transaction between friends is a matter of contract and no licence needed, as it is not a regular activity.
Alex Watts : But you should defend the proceedings on the basis your agreement is not in arrears and has not been breached.
Alex Watts : Can I clarify anything for you about this today please?
Alex Watts :

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