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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7609
Experience:  BA (Hons), PgDip, Practising Solicitor
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Can a secured loan for over 25,000 ever be considered to be

Resolved Question:

Can a secured loan for over £25,000 ever be considered to be either an extortionate or unfair credit agreement and if so what should I be looking for within the loan agreement to illustrate that it is extortionate or unfair. I think if a court finds it is unfair it can impose its own rate on the agreement ??

Thank you.
Submitted: 7 years ago.
Category: UK Property Law
Expert:  Thomas replied 7 years ago.



The Consumer Credit Act 2006( imposes a test upon loan agreements in that that a Court may intervene if the relationship between the creditor and debtor is considered to be "unfair" in relation to any aspect of the agreement.


There are no examples given of what is unfair and it is, sadly, undefined. It is a recent act so there are likely to be quite a few inconsistent decisions by Court until precedents are settled upon. The OFT has not issued any guidelines either.


The Court is entitled to look at (amongst other things) interest, the way in which the agreement is drafted, harrassmnet, coercement, misleading statements, pre-credit checks upon the debts and the manner in which the lender has dealt with the consumer.

The Court's powers are very wide to they could vary the agreement, discharge any obligation under it, reduce interest under it.


If you wish to get an opinion on yours you can do your own check (the legislation is not conceptually difficult to understand but there is a lot of it) or contact a consumer lawyer by using the following land registry website:-


If this is useful please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.

Kind regards,



Customer: replied 7 years ago.
Thanks so the fact that it is a secured loan for about £70k is not an issue. The Courts powers are the same. ?/
Expert:  Thomas replied 7 years ago.



It is a regulated agreement under the consumer credit legislation so yes, the Courts powers are the same.


I hope this clarifies, if so please kindly click accept.





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