GDPR Cookie Consent by SimpleServe Privacy Script Section 24 of Consumer Credit Act 1974 - AAD Consumer Forum

Announcement

Collapse
No announcement yet.

Section 24 of Consumer Credit Act 1974

Collapse
X
Collapse
 
  • Page of 2
  • Filter
  • Time
  • Show
Clear All
new posts
Previous 1 2 template Next
  • #1

    Section 24 of Consumer Credit Act 1974

    Hi All

    I think I'm on to something here that may take down a couple of payday loan lenders, but need smarter brains than mine regards the legalities!

    Looking at the PDL industry it is frequently the case that most of these lenders operate in the US and then set up UK subsidiaries, or have a forwarding address for correspondence.

    What I have noticed is a lot of these UK subsidiaries, according to Companies House, are no longer trading, or have failed to submit accounts.

    Now what is interesting is that Section 24 of the CCA1974 states the following:

    "A standard licence authorises the licensee to carry on a business under the name or names specified in the licence, but not under any other name".

    So lets take the case of Quickquid. Their license authorises them to carry on a business under the following name:

    Casheuronet UK LLC

    However, according to companies house this company was closed in May 2010,

    Section 36 (5) of CCA 1974 then goes on to state the following:

    "Where a change in a partnership has the result that the business ceases to be carried on under the name, or any of the names, specified in a standard licence the licence shall cease to have effect"

    So have I understood this correctly?

    As Casheuronet UK LLC has ceased to be carried on under that name (according to companies house) that their CCL should cease to have any effect?

    Is this is the case, then these guys are going to have a real problem!

    Any feedback on this welcome, as if I am taken to court by this lot I am wondering if this could be used in a defense!

    Best
    SnV
    "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

    The consumer is that sleeping giant.!!


    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.
    Tags: 1st, 2012, accounts, act, action, address, bank, bespoke, breach, business, cca, cca 1974, ccl, challenge, charges, companies, con, consumer, consumer credit, consumer credit act, consumer credit act 1974, court, credit, credit act, debt, failed, finance, financial, fine, hmrc, lenders, licence, loan, loan lenders, loans, niddy, oft, payday, payday loan, pdl, penalty, ppi, quickquid, reference, sales, tax, templates, unenforceable
  • #2
    Re: Section 24 of Consumer Credit Act 1974

    But they won't take you to court. Never been done yet has it...?



    Probably best to call OFT for their interpretation mate
    I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

    If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

    Comment

    • #3
      Re: Section 24 of Consumer Credit Act 1974

      Originally posted by Never-In-Doubt View Post
      But they won't take you to court. Never been done yet has it...?



      Probably best to call OFT for their interpretation mate
      Hey Niddy

      No not yet - but theres always a first but it won't be me!

      I did actually contact the OFT about this. I was deliberately vague as I didn't want to get knocked back with 'individual circumstance' but this is what they had to say:

      "In reference to your enquiry a licence holder is under a duty to notify us of changes. Section 37 of Consumer Credit Act 1974 states when a licensee has ceased to trade we would invite them to surrender the licence"

      Now I understood that S37 only applied to sole licensees not companies or groups (if I understand correctly), so either I have misunderstood or the OFT have got a bit mixed up.

      I'm wondering whether to ask the OFT a more specific question......
      "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

      The consumer is that sleeping giant.!!


      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

      Comment

      • #4
        Re: Section 24 of Consumer Credit Act 1974

        The question is, what do you want from it ?

        Do you want the company to get in trouble ? Probably yes. Then what's in it for you in terms of a debt ?

        M1

        Comment

        • #5
          Re: Section 24 of Consumer Credit Act 1974

          Originally posted by mystery1 View Post
          The question is, what do you want from it ?

          Do you want the company to get in trouble ? Probably yes. Then what's in it for you in terms of a debt ?

          M1
          Not sure I understand the question.

          Do I want the company to get into trouble?

          What I want is to establish is whether this company (and others) are illegally issuing loans as they will not hold a valid CCL.

          I'm not sure what you mean by "Then what's in it for you in terms of a debt ?"

          In terms of my own personal debt - not a lot!

          Whats in it for anyone in terms of investigating where the finance industry are not doing things correctly?

          Whats in it for Niddy and the AAD team looking at UE CCA's?

          Its the sharing of this sort of information thats allowed consumers to challenge the finance industry in regards to PPI, Bank Charges, UE CCA agreements, etc

          This is (hopefully) just another example of financial organizations not doing things correctly, and I'm looking for a way to fight back while they breach almost every rule/guideline in the book.

          So if this then helps other people tackle them then I'll get more out of that than just addressing my own personal circumstances.

          So thats whats in it for me!
          "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

          The consumer is that sleeping giant.!!


          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

          Comment

          • #6
            Re: Section 24 of Consumer Credit Act 1974

            Well said there.

            The finance industry is only just waking up to the internet.

            They at first saw it as a tool to sell to us. What they didnt bargain on was the exchange of information between individuals.

            If there is a law in place why do these companies think they can flout them.

            Just a couple of PDL's companies losing a few days or weeks worth of money/loans will shake them up to operate correctly.

            I have extracted a considerable amount of money out of the finance industry because of websites like this.

            They and others have given me the information to fight back. If PDL's are operating outside the law then they deserve to be outed.
            Last edited by ken100464; 8 November 2012, 13:20.

            Comment

            • #7
              Re: Section 24 of Consumer Credit Act 1974

              Originally posted by ken100464 View Post
              Well said there.

              The finance industry is only just waking up to the internet.

              They at first saw it as a tool to sell to us. What they didnt bargain on was the exchange of information between individuals.

              If there is a law in place why do these companies think they can flout them.

              Just a couple of PDL's companies losing a few days or weeks worth of money/loans will shake them up to operate correctly.

              I have extracted a considerable amount of money out of the finance industry because of websites like this.

              They and others have given me the information to fight back. If PDL's are operating outside the law then they deserve to be outed.
              Looks like an interesting thread SnV- subscribed!
              Agreed on all of the above by the way.
              It never fails to surprise me the amount of companies who haven't woken up to the web. I say "its time to get your finger out of your arse and swot up because its here to stay and your choice to sink or swim".
              The power of collaboration is massive. These lenders would have been laughing their heads off pre web/forums because only a minority know and understand the mechanics of these things.
              Queue AAD and the way it has been beautifully laid out, guides, templates and the ability to ask for bespoke help means lenders will be challenged.
              I just wish i stumbled across AAD sooner!
              When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

              Comment

              • #8
                Re: Section 24 of Consumer Credit Act 1974

                My question is (and i am not sure of the answer) what use can this breach be to a debtor in fighting the creditor ? How does the screw up affect the debt ?

                M1

                Comment

                • #9
                  Re: Section 24 of Consumer Credit Act 1974

                  Originally posted by mystery1 View Post
                  My question is (and i am not sure of the answer) what use can this breach be to a debtor in fighting the creditor ? How does the screw up affect the debt ?

                  M1
                  Unenforceable?

                  Edit: Forgot to add that i worked for a company that declared themselves as dormant way before they stopped sales transactions which caused them a massive headache from Companies House apparently who duly notified all the other bodies they deemed necessary.
                  Last edited by SA Gold; 8 November 2012, 14:12. Reason: Forgot the companies house bit!
                  When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


                  I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                  If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                  Comment

                  • #10
                    Re: Section 24 of Consumer Credit Act 1974

                    Originally posted by missy View Post
                    Unenforceable?
                    Thats what I would be thinking aswell.

                    Comment

                    • #11
                      Re: Section 24 of Consumer Credit Act 1974

                      Originally posted by missy View Post
                      Unenforceable?

                      Edit: Forgot to add that i worked for a company that declared themselves as dormant way before they stopped sales transactions which caused them a massive headache from Companies House apparently.
                      Is that a question ?

                      If not i ask - Why ?

                      M1

                      Comment

                      • #12
                        Re: Section 24 of Consumer Credit Act 1974

                        Originally posted by mystery1 View Post
                        Is that a question ?

                        If not i ask - Why ?

                        M1
                        Yes mate, because i am unsure if that is factually correct hence me asking the members of the forum what they think.
                        When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


                        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                        Comment

                        • #13
                          Re: Section 24 of Consumer Credit Act 1974

                          I missed the ? and wondered if it was a statement or a question

                          I blame the excitement from last nights heroics

                          M1

                          Comment

                          • #14
                            Re: Section 24 of Consumer Credit Act 1974

                            Originally posted by mystery1 View Post
                            Is that a question ?

                            If not i ask - Why ?

                            M1
                            Why would it be UE?

                            A company issues a loan in accordance with the Consumer Credit Act.

                            But to provide a loan doesn't a company have to possess a valid Consumer Credit License?

                            If they do not have a valid CCL (as they do not meet the requirements of the sections of the CCA1974 I refer to above) then surely they are not legally able to supply credit?

                            Hence rendering the agreement UE?

                            Make sense?

                            But as I said in my first post I would like sharper minds than mine to chip in and point out any flaws in the argument!
                            "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

                            The consumer is that sleeping giant.!!


                            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                            Comment

                            • #15
                              Re: Section 24 of Consumer Credit Act 1974

                              Another question for you all

                              When you look at the CCL register there are all sorts of types of license, one of them being cheque cashing. Does a cheque cashing license allow for the more traditional PDL's?

                              Comment

                              Previous 1 2 template Next
                              Working...
                              X