Institutional credit transactions also include revolving and non-renewable credit options. However, they are much more complicated than retail agreements. They may also include the issuance of bonds or a credit consortium when several lenders invest in a structured credit product. In the real world, is it possible to declare a credit contract null or void under the Consumer Credit Act and not have to repay the borrowed money? There are many ads from claims management companies that promise that this is possible (for a fee). Sign up here to challenge your credit and credit card contract, then rest and wait while all your debts and credits are cleaned up. But what we need to understand is that there are no loopholes, no magic formula or secret procedures, as claims management companies claim. The truth is that consumers who lend money are protected under the Consumer Credit Act and that if lenders do not provide certain information (called regulatory conditions) to protect a borrower, they face draconian consequences. It may be that the agreement cannot be implemented and that no action can be taken to enforce the loan. All the legal provisions were examined in detail by the judge in a decision of nearly 60 pages. In short, the arguments have failed. It was found that if the lender could submit a «reconstituted version» of the original agreement, the requirements of Section 78 of the Consumer Credit Act were met. The «reconstituted» agreement must indicate the names and addresses of the borrowers, but this does not necessarily have to come from the agreement. For some reason, many of these challenges – about 100 – occurred in Manchester, and they were all heard together by a test.
In that recent Carey/HSBC Bank case, the court was asked whether a borrower had requested a copy of the original credit contract, as it was, and whether the lender was unable to provide it; what will happen to the loan. Wouldn`t that be opposable? Will there be another way to meet this requirement and, if not, would there be an «unfair relationship» that could render the loan agreement unenforceable? However, there are types of credit contracts that the Consumer Credit Act does not cover. These include gas, electricity and water meter contracts, mortgages, credit unions and money borrowed by Dencern, to name a few.