Irresponsible lending

[CleverClogs]

Re: Irresponsible lending

OH AND BY THE WAY IT WAS ME THAT RAISED THE WHOLE QUESTION OF USING SECTION 75 ON THIS THREAD

just a point

If you hadn't, I would have done. :tung:

I am perplexed about why s.75 might not be applicable, especially as s75 is law whereas the "irresponsible lending" angle is based on a code of conduct that, by now, is so worn out and grimy that it's not even suitable for wiping one's jacksi upon.

[Amethyst]

Re: Irresponsible lending

When did you take out the finance originally ?

Also, as CC asked earlier, what was the timescale between taking out the finance and attempting to cancel through BPF and then via PP ?

There may be some information of use regarding irresponsible lending in the OFT's guidance for creditors. Irresponsible lending - The Office of Fair Trading - http://www.oft.gov.uk/shared_oft/bus...al/oft1107.pdf

3.1 In accordance with the requirements of section 55A(1) of the Act,
before a regulated consumer credit agreement, other than an
excluded agreement, is made with a borrower, the creditor must:
• provide the borrower with adequate explanation of the
matters referred to in section 55A(2) of the Act in
order to place him in a position enabling him to assess
whether the agreement is adapted to his needs and his
financial situation
• advise the borrower to consider the information which
is required to be disclosed under section 55(1) of the
Act and where this information is disclosed in person
to him, that he is able to take it away
Section 55(1) of the Act requires specified information to be disclosed to
borrowers in the manner prescribed in regulations, before a regulated agreement
is made.

[Amethyst]

Re: Irresponsible lending

For section 75 to work I think that the course the finance was meant to cover would have to have been dropped so it couldn;t be continued....I recall from other threads of BPF financed training that the courses had been switched over to other providers - although in many cases un suitable. I'll see what I can dig up as I believe some s.75 claims were made.

Have a look for train2gain ( train4trade ?) and advent computer training.

Obviously from the OP's first post he has already tried a section 75 claim - so some more info on what happened with that and why it was rejected might be in order to see whether looking at the IL route is necessary.

[Guest]

Re: Irresponsible lending

If you hadn't, I would have done. :tung:

I am perplexed about why s.75 might not be applicable, especially as s75 is law whereas the "irresponsible lending" angle is based on a code of conduct that, by now, is so worn out and grimy that it's not even suitable for wiping one's jacksi upon.

HI
Yeh Yeah CC of course you would:tinysmile_hmm_t2:

Just been staring at section 11a trying to work out what it means. I think the penny just dropped

(a) to finance a transaction between the debtor and the creditor, whether

forming part of that agreement or not, or

Does this mean that the creditor is the supplier? It must do otherwise it would be a unrestricted loan.
If this is true if the company was in partnership would section setion 75 still apply?Barclays partner finance.
of course it wouldnt have to because they would be liable anyway

Please stop me if i am talking B****cks , it is quite possible oin this particular section of the act.
Peter
------------------------------- merged -------------------------------
Oh and yes the cancellation would have applied under the new european directive for fourteen days after the reciept of the signed copy document.

This i am sure of

Peter

[Guest]

Re: Irresponsible lending

This may be of use rom the consumer credit directive that came into force this year

Creditworthiness and adequate explanations – (Chapters 7 and 8)

2.5 Creditors are required to assess the borrower’s creditworthiness before granting credit or significantly increasing the amount of credit. The assessment must be based on sufficient information, obtained from the borrower where appropriate, and from a CRA where necessary.
2.6 Creditors must ensure that the borrower is provided with an adequate explanation of the proposed credit agreement, for example the particular features of the agreements, the cost and the consequences of failure to make payments, to enable him to assess whether the agreement is suited to his needs and financial situation. The explanation must cover certain specified matters, and must be provided orally in certain circumstances. The borrower must be able to ask questions about the agreement, or to ask for further information or explanation.

Peter

[tarotmac]

Re: Irresponsible lending

Let me assist. First, there are some definitions provided by section 11 of the Consumer Credit Act 1974 - link


and section 12 - link


Sections 11(1)(b) and 12(b) would seem to apply to this loan, obtained for the sole purpose of financing a training course; that the agent of the supplier provided the forms specifically for one creditor does certainly suggest the existence of a pre-existing arrangement.

Then there is section 75 - link



Section 75(1) seems perfectly plain and unambiguous - both the creditor and the supplier are jointly and severally liable to the debtor for any claim against the supplier in respect of a misrepresentation or breach of contract.

I would therefore like to know why that section "did not work".

Did the creditor claim that it only applied to the supply of goods? As you can see from the above, it does not.

Did the creditor claim that the cash value of the training course was less than £100 or greater than £30,000?

Did the creditor state that it was a non-commercial agreement?

Agreement signed on creditors premisis, creditor now liquidated after going to administration.

[tarotmac]

Re: Irresponsible lending

section 75 failed because BPF found a new training provider, all be it months after PP collapsed.
Tried to cancel within about 5 days with BPF.
no info was given by me as to how much I earnt , BPF say that info from CRA was enough to claim responsible lending.

I have now proceeded through the Financial Ombudsman and am awaiting the results of their investigation:tinysmile_hmm_t2: but to be honest I dont hold out much hope