High Court ruling clarifies status of credit agreements
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A High Court judge has ruled that credit agreements are not unen-forceable just because lenders cannot produce photocopies of the original documents.
On December 23, 2009 Judge Waksman concluded that under section 78 of the Consumer Credit Act it is enough for lenders to provide
reconstructed versions of the agreements.
He also says this may be from sources other than the signed agreements themselves.
In his ruling the judge says: “If a creditor is in breach of section 78 of the CCA this does not in itself give rise to an unfair relationship.”
But if an agreement has been varied by the creditor they still must provide a copy of the original agreement.
Legal giant Eversheds says the decision will allow courts to dispose of the many cases that have been brought by claims management firms.
But claims firm Cartel Client Review argues that the judgment merely reaffirms that if a bank or credit company is in breach of section 78 the agreement concerned is legally unenforceable.
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