Is your Credit Agreement Unenforceable?

To find this out the agreement has to be checked thoroughly, you can do this yourself as some of the points may be obvious such as:

• You have been charged interest at an exceptionally high rate



• The creditor gave you wrong or misleading information, or didn't give you enough



• Information when you were deciding whether to take out the loan



• The creditor failed to make a proper assessment of whether the loan was suitable for you



• The creditor didn't fully take into account how your age, experience, physical or mental



• Health would affect your ability to enter into a credit agreement or to keep up with payments.

There are many other reasons also. If you think your agreement is unenforceable you can challenge the company who issued it but it is unlikely they will respond favourably, you would probably need to take legal action to take it further.

Millions of credit agreements, ranging from credit cards to loans are in breach of the Act and can be deemed 'unenforceable'. If a borrower's agreement is discovered to be 'unenforceable' the borrower would not need to make any future repayments and possibly have previous payments refunded because the lender has not complied with the law.