If they do, they violate section 40 of the Administration of Justice Act 1970 and commit a crime. If you are harassed in this way, you can get an injunction against your creditor or its recovery ordered. The frequently asked question is how refusing to pay an unenforceable agreement affects your credit score. Unfortunately, it has been determined that in the case of unenforceable agreements, the lender has the right to report the non-payment to a credit agency. Therefore, non-payment of an unenforceable agreement is likely to affect your future ability to obtain a loan. The situation of irrevocably unenforceable agreements is less certain and is currently awaiting a decision from the courts. Use this sample letter to request a copy of your agreement and related documents as well as a creditor`s bank statement. You may need to use this letter if you have lost your original contract and want to check the terms such as the interest rate, loan amount, and total number of payments. You may want a bank statement to check what the creditor thinks you paid into the account and when. Use sections 77, 78 and 79 of the Consumer Credit Act 1974 to make this request. The law also grants you certain consumer rights, including the right to a 14-day “cooling-off period” and the right to terminate a contract if the information provided by the lender is deemed misleading or unfairly leaves the buyer out of pocket. You must provide the customer with a copy of the signed agreement as well as details of their cooling rights. And they can request another copy at any time.
When you take out a loan or get a loan for goods or services, you are entering into a loan agreement. You have the right to terminate a credit agreement if it is covered by the Consumer Credit Act 1974. You can cancel within 14 days – this is often referred to as the “reflection period”. The FCA has published detailed guidance on how lenders should trade in the Consumer Credit SourceBook (CONC). For more information, see Useful Contacts later. As with pre-contractual information, there are rules about what should be included in the loan agreement document that the borrower signs. This document should also be clear, concise and easy to understand. .