After being made redundant from his job as an Assembly Operator, Mr Simon Haywood fell behind in his repayments towards a personal loan he had taken out to consolidate previous debts. He faced demands from debt collectors, First Credit, for the balance of £8,540.76. First Credit demanded £120 per month to pay off the debt, which was impossible for Mr Haywood whilst he was out of work. The best he could offer was £10 per month.

We considered that the lender’s standard form credit agreement was likely to be found unenforceable and went on to secure the write-off of the loan, removal of adverse credit entries and payment of the borrower’s legal costs.

Mr Haywood is one of a growing number of consumers who have successfully challenged loans, mortgages and hire-purchase agreements offered by a range of financial institutions, particularly those targeting vulnerable customers with poor credit ratings and existing financial difficulties. We have helped hundreds of clients struggling to meet repayments under credit agreements that fail to comply with consumer credit regulations designed to protect borrowers from hidden charges and misleading information.

Mr Haywood is delighted at the outcome of his case and very grateful to those who worked on his behalf. He is relieved to have such a heavy weight off his shoulders and is now back in work and successfully getting his finances back in order. Mr Haywood advises anyone in a similar position to him: “Don’t panic; get advice!”

Andrew Leakey said “This case shows the benefit of seeking advice early. Thousands of credit agreements may not be enforceable, and there is no harm checking whether yours is one of them”.