A decision by a county court judge could mean thousands of borrowers being able to renege on their debts.
Judge Jacqueline Smart at South Shields county court has decided that the MBNA credit card company cannot demand the repayment of a customer's debt.
It tried to force Mrs Lynne Thorius to repay the £8,000 she owed on her card.
But the Judge decided there had been an unfair relationship between Mrs Thorius and MBNA because of the way she had been sold payment protection insurance.
Read more @ BBC News
Tags:
Am I the only one that is [insert appropriate word] by this?
Granted that big business has a penchant for evil, but what this tells to me is those people who tried hard to live within their means, not get into too much debt etc and thus was not allowed to be as extravagant are being punished for be responsible, while others who are part of the whole over indebtedness problem in the country are being rewarded for their stupidity and excesses.
"For too long, we have been a passively tolerant society, saying to our citizens 'as long as you obey the law, we will leave you alone'" - David Cameron, UK Prime Minister. 13 May 2015.
To say that big business have a penchant for evil is a bit mild in my eyes. I deal with a lot of people trying to overcome financial problems and loan companies, banks and other ilk do not make it easy for people especially with their small print.
The lady in the news report was not being rewarded for amassing a debt. We do not know her circumstances and what caused her to run up such a high bill. It is very easy for people's debts to go out of control - we all have many outgoings - food, clothes, bills, rent/mortgage, travel, medicine, taxes, and this increases many-fold with children.
The lady took advantage of little-known Sections 77-79 Consumer Credit Act 1974 which includes rendering a credit agreement void and unenforceable should the contract not be executed correctly. Banks and loan companies are on the ball when it comes to enforcing their rights on their customers. Many consumers are left vulnerable and end up in and endless circle of debt as a result, so I say good on her.
May Allah shine sweet faith upon you this day and times beyond. May your heart be enriched with peace, and may your home be blessed always. Ameen.
Yes, she followed the rules, yes getting credit was too easy.
But there are also those that did not do that. Just like with alcohol, it is available in the shops to buy and if you try to get loads, they will not stop you or question why... but if you then drink it any problems arising are your own fault.
Maybe she was desperate and needed the money... but adding "clueless" to "little-known Sections 77-79 Consumer Credit Act 1974" seems to not add up to me. Unless she found out later through an agreement.
Is this something like that news that was doing the rounds a few months ago, where some lawyers were searching for people who had large loans, promising to wipe them away for 10% of their value or something?
Small print can be a problem, but by evil I did not mean providing loans, more how the whole industry works.
"For too long, we have been a passively tolerant society, saying to our citizens 'as long as you obey the law, we will leave you alone'" - David Cameron, UK Prime Minister. 13 May 2015.
No doubt there are people out there who have only themselves to blame when they find themselves in the red. You cannot go on a spending spree and then try to weasel your way out of your responsibilities. It'll eventually catch up with you.
Yep if you have a credit agreement (ie a loan) that was made before 6th April 2007 then you should check to see if it was executed correctly - if there are some procedural irregularities such as it not being signed then it cannot be enforced by the creditor. Its almost like writing off a loan. It is applicable to all credit agreements - so car hire-purchase, catalogues, bank loans, mortgages etc.
May Allah shine sweet faith upon you this day and times beyond. May your heart be enriched with peace, and may your home be blessed always. Ameen.
The mis-selling of PPI is pretty big actually.
And the reason i agree with it being writtn off is becoz she was 'mis-sold' the product. PPI or payment protection insurance has over the last few years been sold to customers taking out credit cards without even telln them wat the hell it is. So theyr fully justified in not paying for it.
Back in BLACK
But what about the people who were careful enough to not get taken in by such schemes?
What it does is in the long run raise prices for them.
"For too long, we have been a passively tolerant society, saying to our citizens 'as long as you obey the law, we will leave you alone'" - David Cameron, UK Prime Minister. 13 May 2015.