Under sections 140A and 140B of the Consumer Credit Act 1974 the Court has the ability to change the terms of a consumer credit agreement. In order to exercise the jurisdiction the Court must find that the relationship between the creditor and the debtor is unfair as a result of one or more of three factors:
a. Any of the terms of the agreement (or any “related agreement”);
b. The way in which the creditor has exercised or enforced any of their rights under the agreement (or any “related agreement”); or
c. Any other thing done or not done by, or on behalf of, the creditor.
The wording above is broad, and the existence of the jurisdiction is well-known. But the number of cases in which the power is successfully invoked is surprisingly few.
Please click here to read the full article by Paul de la Piquerie.
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