Judge Derek Halbert, the Designated Civil Judge for Cheshire, is now consulting with interested parties over the possibility of potential test cases being heard in the High Court to deal with specific issues.
While there is already much case law on Consumer Credit Act claims, there are still some peripheral issues which could benefit from clarification.
It’s a move welcomed by financial claims management company Ratio Money, which believes such a move would clear up the few ‘greyer’ areas of the law and ensure that consumers gain a better understanding of their rights.
The company’s managing director, Matthew Porteus, explained: “If unenforceable credit agreements go to the High Court as test cases, the issue will be out in the open and the sneaky tricks that the banks have employed for years will be laid before the courts.
“The case decided by Judge Halbert was an unequivocal victory for the consumer because the judge ruled that the loan couldn’t be enforced on any level.
“The banks suggest that people are trying to exploit loopholes to have their debts written off. But this judge ruled that it was the bank, rather than the borrower, that had a case to answer.
“Legally there cannot be any argument over clear cut cases of agreements that breach the Consumer Credit Act and so we can’t see any reason for these cases to be held up by the courts.
“Furthermore, the irony of any move to delay these cases is that the banks could suffer most.
“In claims where they sought to recover payments from a borrower and that borrower alleges unenforceability issues, the bank claim would be put on hold pending determination of any test case.
“This would mean that in the interim period, the lender could not enforce the agreement. This isn’t good for a banking system that’s been relying on taxpayer bailouts to keep it in business.
“Consumers and banks alike will be opposed to any proposed delays it simply would not be in anybody's interest!”
Ratio Money is the only claims management company to provide comprehensive manual audits of client credit agreements, they say. These audits scrutinise the credit agreements much closer than computer-generated reports and address all areas of mis-selling.
When the audit shows the agreement is unfair or unenforceable, Ratio Money works with a panel of specialist solicitors to fight for recompense.
