Unfair relationships
An “unfair relationship” could include the terms of an agreement, the ways in which enforcement is being carried out, or anything else. The new rules are retrospective and will make lenders responsible for the transgressions of their brokers, even when these do not fall within the antecedent negotiation rules.
The method is the same as for extortionate credit, and there is no doubt that anything that is extortionate will also be an unfair relationship, but hopefully a lot more will be.
Any
Court can re-open any credit agreement, whether regulated or not, where
it considers that the bargain was an unfair relationship. The debtor must raise
the matter and it is for the creditor to rebut it (s.171).
This page was last updated on 02/05/08 (c) Bob Imrie