Is this agreement enforceable

[Gorang]

Re: Is this agreement enforceable

IMO this is NOT an enforcable agreement, as this is a flexable loan APPLICATION ONLY

IMO not enforcable for 2 reasons

1)

2.1 on the T&C's says

"We will notify you by secure message IF you have been accepted for a Cahoot flexible loan, and IF so, WHEN you may start to use it."

IMO and agreement can NOT be made UNTIL you have been accepted, therefor this is a APPLICATION form NOT an agreement

2)

Front Page under Key financial info section it says

"Credit limit: We WILL tell you from time to time what you flexable loan LIMIT is"

before you spend 1p, they HAVE to give you a upper limit, otherwise you could go and buy the world as soon as its activated

Therefor as they have NOT specified a limit, this is ONLY an APPLICATION form NOT an agreement


But this IS only my opinion so please wait for others to comment that has more knowlege in this area of the law

[SpringerSpaniel]

Re: Is this agreement enforceable

I agree with Gorang, it is not fully executed as an agreement until the messages referred to have been received by you.

[Guest]

Re: Is this agreement enforceable

HIU
I think the distinction we are looking at her involves this bit.
“to an amount or value such that, taking into account payments made by or to the credit of the debtor, the credit limit (if any) is not at any time exceeded”
In a running credit agreement you can reduce or increase your usable credit balance by making payments on your account, on a fixed sum agreement you can only reduce the balance owed.
In other words whatever you pay off your balance on a running account agreement you can re spend whereas on a fixed sum agreement it just reduces your agreement balance until it is repaid.
Peter

[Guest]

Re: Is this agreement enforceable

IMO this is NOT an enforcable agreement, as this is a flexable loan APPLICATION ONLY

IMO not enforcable for 2 reasons

1)

2.1 on the T&C's says

"We will notify you by secure message IF you have been accepted for a Cahoot flexible loan, and IF so, WHEN you may start to use it."

IMO and agreement can NOT be made UNTIL you have been accepted, therefor this is a APPLICATION form NOT an agreement

2)

Front Page under Key financial info section it says

"Credit limit: We WILL tell you from time to time what you flexable loan LIMIT is"

before you spend 1p, they HAVE to give you a upper limit, otherwise you could go and buy the world as soon as its activated

Therefor as they have NOT specified a limit, this is ONLY an APPLICATION form NOT an agreement


But this IS only my opinion so please wait for others to comment that has more knowlege in this area of the law

HI
Yes I see what you mean g. Unfortunately the creditor is allowed to send an unexecuted agreement to the debtor for him to sign and return, it then becomes executed on the signature of the creditor(section 62).
The only thing that differentiates this from an application form is the presence of the prescribed terms.
Also if it is a running credit agreement they can give the value of the limit whnever they want as long as they mention that they will on the agreement.


Peter

[Gorang]

Re: Is this agreement enforceable

HI
Yes I see what you mean g. Unfortunately the creditor is allowed to send an unexecuted agreement to the debtor for him to sign and return, it then becomes executed on the signature of the creditor(section 62).
The only thing that differentiates this from an application form is the presence of the prescribed terms.
Also if it is a running credit agreement they can give the value of the limit whnever they want as long as they mention that they will on the agreement.


Peter

Hi Peter

Yeah I see where you are coming from there

so in fact the agreement basically becomes enforcable (in court) as soon as the debitor asks for a copy ie the the CCA request and the creditor complies with a copy of the original

and because the upper limit is/can be variable then they are covered by saying they will inform of the limit from time to time

yeah the more i think about it now, the more I think you are 100% right which means that as long as all the prescribed terms are on there and its a copy of the original then yeah, it is enforcable

Thanks Peter



Sorry for giving you false hope there oracleman

[Guest]

Re: Is this agreement enforceable

Hi Peter

Yeah I see where you are coming from there

so in fact the agreement basically becomes enforcable (in court) as soon as the debitor asks for a copy ie the the CCA request and the creditor complies with a copy of the original

and because the upper limit is/can be variable then they are covered by saying they will inform of the limit from time to time

yeah the more i think about it now, the more I think you are 100% right which means that as long as all the prescribed terms are on there and its a copy of the original then yeah, it is enforcable

Thanks Peter



Sorry for giving you false hope there oracleman

Hi
Yes then whole applicatin form / unexecuted agreement debate went on for years over on cag before we got a handle on it, many challenged agreements on the grounds you stated.
In the end it was confirmed that the precontractural document you sign when you apply for an agreement was an unexecuted agreement under section 62 of the act, that is of course unless you could show that the terms and conditions where not contained on it in which case it turns into an application form and unenforceable.

THe thing is that the prrescribed terms as shown in schedule six of the agreement regulations 1983/1553 state that a fixed sum agreement must show a term for the total credit where as if it is a running credit agreement they can get away with just saying it will be given at a future date.

The agreement here takes the form of a running account agreement. So if the method he recieved the money and if the way the occount opperates is as a fixed sum agreement it is incorrectly executed, because the agreement should have the total credit specified as a sum.

Peter

[labman]

Re: Is this agreement enforceable

It's actually impossible for any of us to say until we know just how the money was paid. Until then, all we can do is speculate.

[oracleman]

Re: Is this agreement enforceable

Hi .

The money was paid in two lots. I first borrowed £2K, and then some six months later another £4K. This was paid into my bank account.

[Guest]

Re: Is this agreement enforceable



HI
So I take it you did not have to sign another agreement when the second advance was issued?
IF you didn’t then I think this would be classes as a running agreement and enforceable.
The only argument you could raise would be that this did not permit you to have a creditor debtor supplier bargain (as a running account would)as the money was issued directly to you, but this is very tenuous argument I think.
Peter

[oracleman]

Re: Is this agreement enforceable

No I only signed one agreement. One further point. I never got a written copy of their "General T&Cs" this was on the website at the time, but never got a copy. I asked for one but never reveived it