Borrowers May be Able to Escape Loan Debts on Technicality

Mon, 08 Dec 2008

Millions of borrowers could be in line to wipe out all of their debts if lenders have made a mistake with their loan contracts. It is claimed that errors have been made on some loan contracts on personal loans of between £5,000 and £25,000 that could see borrowers regain thousands of pounds. Errors can include the incorrect printing of details such as the annual percentage rate and fees for credit . Borrowers are advised that claims on such grounds are more likely to succeed if payment protection insurance was sold with the loan. Such errors can lead to borrowers escaping debts as they may be viewed as a technical breach of the Consumer Credit Act .

Alan Kneale, of claims management website Unfair Made Fair, said, ‘There are undoubtedly thousands, if not millions, of other unfair loans out there that still need to be checked’. Meanwhile, solicitor Rodney Gardner, said, ‘'Most loans will not be sufficiently defective in law to guarantee claim back success but chances are increased if a PPI premium was added at the time the loan was arranged. Lenders are preferring to settle out of court if there is a case to answer.'
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