Consumers could be saying ‘no’ to credit agreements thanks to a leading North West law firm. Stephensons Solicitors LLP has just successfully reached an out of court settlement for its client whose home was at risk, after a financing company which bought some of the debts of Yes Car Credit, took them to court to recover a car loan.
Mr and Mrs Griffiths-Peet from Ashton-in-Makerfield, Greater Manchester, had taken out a credit agreement with Yes Car Credit to finance the purchase of a new car, a Rover, in 2003. The couple’s debt was taken on by MIM Servicing LLC, who then sought to reclaim the remaining £6,174.52 by obtaining a county court judgment against them. This judgment was secured on their home, meaning it could be at risk of repossession.
However, at the time of taking out the finance, the Griffiths-Peets also took out payment protection insurance. They were told this was not optional, and this should have been added to their bill as a separate charge for credit. However, in the Yes Car Credit agreement, it was not. This meant the credit was mis-stated and the agreement was irredeemably unenforceable.
Andrew Leakey, Managing Partner of Stephensons Consumer department, said: “There were discrepancies with Mr and Mrs Griffiths-Peet’s agreement which meant it was ultimately unenforceable and we’re pleased to say the loan has now been written off, with MIM Servicing paying our clients’ legal fees. Most importantly, a family’s home has been saved.
“This is unfortunately just the tip of the iceberg. There are potentially hundreds of people out there who have taken out car credit agreements which could be unenforceable. This case could pave the way for hundreds of people who are struggling to keep up with repayments on credit agreements, to find a way out, if their contract is deemed unenforceable.”
Stephensons offers a free initial consultation, up to 30 minutes, to check through credit agreements and assess the potential of successfully challenging them.
Andrew added: “There are various funding options open to people who wish to challenge their credit agreements, including legal aid in certain circumstances, or based on the prospects of winning the case we may be able to offer a no win, no fee option.”