Claimants await credit card debt decision
By UK CreditCards.com
Test cases to be heard in the High Court in Manchester will help to clarify the law on credit card agreements made before April 2007.
Judges are to decide on a total of 12 cases with hearings to be held towards the end of the month, the BBC reported.
Thousands of consumers have launched action to get their credit card and loan debts wiped out, taking advantage of a legal loophole which was open prior to the application of the latest Consumer Credit Act.
Commonly, the claimants argue that their original agreements are unenforceable.
Many of the cases originate from claims management companies, which offer customers help with getting debts wiped out.
However, three recent test cases have found in favour of the creditor rather than the claimant.
Speaking to the broadcaster, Consumer Credit Act expert Bob Imrie said: "Courts are not very sympathetic to claims that terms and conditions were not provided to customers. You've got a real problem trying to undo an agreement on a technicality; you've got to provide evidence the banks behaved wrongly."
Published: 25 November 2009
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