Consumer Credit Licence

[bmwman]

Hi All

The Consumer Credit Act states that anyone wishing to provide credit or hire must have a consumer credit licence. I have a Consumer Credit Agreement executed on the 13th April 2005 but the creditor requested that thier name be remove from the licence on 30th September 2003 and has not been added back on prior to executing the agreement. No validation order has been sort. where do I stand on this agreement as it has now sold to a DCA.

Thank You.

[gravytrain]

Re: Consumer Credit Licence

This comes under section 40 of the act as you probably know, and it means tha the creditor cannot enforce without permission from the director.

Can we ask which company this is ?

[bmwman]

Re: Consumer Credit Licence

Hi gravytrain

The original creditor is First National Comsumer Finance Limited they changed thier name to GE Money Consumer Lending Limited on 3/10/2005.

Consumer Credit Licence http://www2.crw.gov.uk/pr/default.aspx

Change of name http://wck2.companieshouse.gov.uk//compdetails

As I understand Company Law a Limited Company cannot trade until is name appears on the register at Companies House therefor how can a non-exsistant company hold a Consumer Credit Licence

[bmwman]

Re: Consumer Credit Licence

Hi All

Can any one shed any light on my previous post as it has now been sold to Sigma SPV1 Lmited and being chased by HL Solicitors. I have requested a copy of the original signed contract and a copy of Original Lenders Consumer Credit Licence as it stood at the time the agreement was executed. HL have refered back to Sigma.

[bmwman]

Re: Consumer Credit Licence

Duplicate Post

[Inca]

Re: Consumer Credit Licence

:bump:

[FlamingParrot]

Re: Consumer Credit Licence

Hi All

Can any one shed any light on my previous post as it has now been sold to Sigma SPV1 Lmited and being chased by HL Solicitors. I have requested a copy of the original signed contract and a copy of Original Lenders Consumer Credit Licence as it stood at the time the agreement was executed. HL have refered back to Sigma.

If the solicitors letter suggests they are about to start proceedings, you may wish to treat it as a letter before action and reply with something similar as suggested here: http://www.legalbeagles.info/forums/...592#post327592

You could raise the issues above as the cause of your dispute. It's always a good idea to respond appropriately to solicitors letters.

[bmwman]

Re: Consumer Credit Licence

Thank You for the replies.

I seem to remember reading some where that:-

"An unenforceable agreement cannot be enforce through the courts as this would be seen as enforcement"

Can anyone help on this ?

Thank You

[PlanB]

Re: Consumer Credit Licence

I seem to remember reading some where that:-

"An unenforceable agreement cannot be enforce through the courts as this would be seen as enforcement"

Can anyone help on this ?

In reality only a judge can rule whether an agreement is unenforceable. There is nothing to stop a creditor issuing proceedings against you in the hope that they can persuade the DJ otherwise

[FlamingParrot]

Re: Consumer Credit Licence

Thank You for the replies.

I seem to remember reading some where that:-

"An unenforceable agreement cannot be enforce through the courts as this would be seen as enforcement"

Can anyone help on this ?

Thank You

Some agreements are irredeemably unenforceable, as long as they were entered into before April 2007, when s.127 of the CCA was repealed.:rant: S.127 prevented a court form issuing an enforcement order unless there was a properly executed agreement containing all the prescribed terms. If you received court papers, you'd need to seek suitable legal advice in view of the fact that the creditor did not appear to have a CCL at the time.

Enforcement means obtaining judgment against the debtor (a CCJ), starting proceedings (issuing court papers) does not amount to enforcement, as established by The Honourable Mr Justice Flaux on McGuffick v RBS: http://www.bailii.org/ew/cases/EWHC/Comm/2009/2386.html

1. In contrast, the bank invited the court (as set out in the list of issues) to conclude not only that reporting to the CRAs did not amount to enforcement, but that a number of other activities did not constitute enforcement: (i) reporting to CRAs without also telling them that the agreement is currently unenforceable; (ii) disseminating or threatening to disseminate the claimant's personal data in respect of the agreement to any third party; (iii) demanding payment from the claimant; (iv) issuing a default notice to the claimant; (v) threatening legal action and (vi) instructing a third party to demand payment or otherwise to seek to procure payment.
2. So far as activities (iii) to (vi) are concerned, it was accepted on behalf of the claimant that these did not amount to enforcement or actions to enforce the agreement. That concession seems to me to be correct: at most these activities are steps preparatory to subsequent enforcement. Furthermore, in a recent decision, Rankine v American Express Services Europe Ltd [2009] CCLR 3, HHJ Simon Brown QC (sitting as a Deputy High Court Judge) concluded that the bringing of proceedings is only a step taken with a view to enforcement and not actually enforcement. It seems to me that that conclusion must be correct. Were it otherwise, as Mr Handyside pointed out, one would be left with the conundrum that the creditor could not apply to the court for an enforcement order under section 127(1), because to do so would amount to enforcement, not permitted by section 65(1).
3. Once it is recognised that the bringing of proceedings is not enforcement, it necessarily follows that activities (iii) to (vi) do not constitute enforcement, since they are all steps taken prior to the commencement of proceedings and therefore by definition, at most, steps taken with a view to enforcement.

In reality only a judge can rule whether an agreement is unenforceable. There is nothing to stop a creditor issuing proceedings against you in the hope that they can persuade the DJ otherwise

...or in the hope that the debtor won't defend, after all not everyone reads these forums and knows their rights, many would just roll over and admit the debt. Or they may hope to obtain default judgment, :mad2: either because the defendant didn't respond, didn't get the court papers or didn't open the envelope (it happens). People who are defending often lose track of things and end up getting default judgment against them, I've seen it happen quite a few times.

[bmwman]

Re: Consumer Credit Licence

Hi All

Thank You for the replies.

I sent a letter to HL Solicitors along with a copy of GE Money Consumer Lending Limited's Consumer Credit License Event Number 14 and the Companies House search showing the date for change of name. HL have place the account on hold and reverted my comments back to GE Money. So now I sit and wait for GE's response.