What To Do If You’ve Been Mis-sold A Loan.

In today’s financial climate more and more people are turning to loans to help us cover bills, essential items or repairs and trips away. Loans seem like an easy way of getting some fast money without having to worry about when the next pay day is. A loan may seem an easy way out but in fact some of these loans are actually unlawful and in some cases consumers may actually be owed money. Some loan companies have been seen to take advantage of the influx of people taking out loans and have mis-sold loans to consumers; because of this many people are now eligible to claim compensation.

In order to be eligible to make a claim for compensation then must have taken out a credit card or loan before the 6^th of April 2007. This is because many credit agreements before this date have been shown up to be flawed and unenforceable. After this time measures have been put in place to stop people being sold loans unlawfully. The Consumer Credit Act of 1974 was set up to regulate loan-lending. The Act requires lenders to include certain information in a loan, mortgage, hire purchase or credit card agreement and if a lender has not included all the appropriate information, or if it is incorrect then it is possible for the agreement to be deemed unenforceable and therefore the consumer does not have to repay the balance.

Since the CCA was put into action there have been revisions to the Act that mean that people who have taken out loans before April 2007 have been affected by invalid or unenforceable credit agreements, the majority of which aren’t even aware of this. It may be the case that they are missing out on a hefty sum of compensation or that they do not actually need to make any more repayments.

People who have been mis-sold loans or credit cards may also have been mis-sold payment protection insurance as an insurance product. The insurance covers your loan if you lose your job or if you become ill and as a result are unable to meet the repayments. However, there have been lots of reports of mis-sold PPI with some people not even realising that it has been added on to their loan and therefore incurring unwanted costs.

If you think that you may have been mis-sold a loan or a credit card before April 2007 then you should contact a specialist solicitor who will be able to claim compensation for anyone extra payments you have paid. A specialist solicitor will be able to check your credit agreement to see if it is in breach of the Consumer Credit Act and therefore invalid or unenforceable. If this is the case then you may be eligible to claim compensation. Contact Accident Consult today for more information.