Enforceability Check of Your Consumer Credit Agreement

Lenders are keen to lend money when things are going well for people but are very quick to change their attitude when things start to turn bad. We use the legislation of consumer credit act 1974 to protect the borrowers from unfair practices of the lenders. Lenders had almost 40 years to comply with this legislation yet still many credit agreements and other financial products do not comply with the basic law.

What is An Unenforceable Credit Agreement And How Does It Work?

Section 77(1) of the Act deals with fixed-sum credit agreements. It provides that the creditor under a regulated agreement for fixed-sum credit 'within the prescribed period after receiving a request in writing to that effect from the debtor and the payment of a fee of £1, shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it'. Under Section 78(1), an identical duty applies in respect of running-account credit agreements. Borrowers and/or hirers are able to ask creditors to send them information about their credit agreements, if information is not supplied within 12 working days then your debt is called ‘unenforceable’ until you get the information they asked for.

"An Unenforceable Credit Agreement is a Credit Agreement That is Not in Line With Chapter 13 of Consumer Credit Source Book of Financial Conduct Authority".

There are a range of different things that can deem a credit agreement to be unenforceable. Here are some examples:

There are also many other factors that can make your debt unenforceable, just ask us about yours and we can investigate and let you know what the next step for you will be.

What Does An Unenforceable Agreement Mean?

Unenforceable does not mean your debt is wiped out. You still owe the money, and if you don't pay you can be charged interest on what you owe, be charged for not paying (these are called default charges) and it could affect your credit record.

But if you haven't been given the information, they cannot:

  • Make you pay off your debt before you're supposed to
  • Get a court judgment against you
  • Take back anything you've hired or bought on credit, or take anything you used as security (like your house) when you took out the agreement.

However, they can still:

  • Ask you to pay what you owe
  • Send you a letter called a default notice if you miss any payments
  • Pass your information on to a credit reference agency, which might affect your credit record
  • Pass your information on to a debt collector
  • Sell your debt to someone else
  • Take your case to court, although they won't be able to get a court judgment against you unless they give you the information you're entitled to.


We shall make a request to your creditor to send us the copies of original credit agreement under section 77/78 of consumer credit act 1974 within the prescribed time limit and after obtaining these we shall audit the agreement to identify any deviation from the consumer credit act 1974 which makes it legally unenforceable and will advise you accordingly.

The following are a list of few cases which we take into consideration prior to advising our customers:

  • Tesco Personal Finance v Rankine
  • McGuffick –v- The Royal Bank of Scotland plc
  • Rankine –v- American Express Services Europe Ltd [2008]
  • Carey v HSBC Bank plc

If we determine that you have sufficient grounds for an unenforceability, we shall advise you accordingly however, please note that we shall not process the claim on your behalf but simply ADVISE you on whether your agreement is enforceable or unenforceable.


We will take an upfront payment of £100.00 plus VAT for auditing an agreement.

Note:The Unenforceability aspect of consumer credit act 1974 only applies to credit agreement up to a maximum of £25,000.00

Have any questions?? Please Contact Us

Contact Us