Test cases 'could change enforceability of credit card debts'

Tuesday, November 24th 2009

A series of test cases to be held at Manchester's High Court later this month could result in changes to the enforceability of substantial credit card debts.

The cases will be heard over five days to resolve issues relating to the Consumer Credit Act (CCA), the BBC reports.

A number of similar cases have taken place around the country in the last 12 months, with consumers arguing that their debts should not be enforced due to alleged transgressions of the CCA made by lenders.

These include the omission of information such as the specified credit limit, interest rates and repayment methods for a particular product from a credit agreement, all of which is required under the Act.

Carl Wright of claims management firm Cartel Client Review said: "We want the judges to rule on these claims, providing precedents which will prevent the banks and credit card companies delaying on paying out on consumer claims any longer."

An £8,000 credit card debt incurred by Lynne Thorius of South Shields was written off earlier this year after a judge ruled that she had been mis-sold payment protection insurance when she initially took out the card.