Mistakes by loan providers 'can lead to claims'

08/12/2008

Errors made by personal loan providers on contracts could lead to millions of customers claiming their money back, campaigners have claimed.

The potential for legal action is allowed for in law, as the misstatements are in technical breach of the Consumer Credit Act, the Metro reports.

Potential mistakes include erroneous fees or miscalculated APRs - which can lead to customers paying too much for their credit.

Experts say that the chance of a successful claim is boosted if the borrower takes out payment protection insurance (PPI) with their loan.

Speaking to the newspaper, Alan Kneale at claims management website Unfair Made Fair said: 'There are undoubtedly thousands, if not millions, of other unfair loans out there still to be checked."

Rodney Gardner, a solicitor, added: 'Most loans will not be suff¬iciently defective in law to guarantee claim back success but chances are inc¬reased if a PPI premium was added at the time the loan was arranged."

Tags; Debt Management and Banking, Credit Card Lifestyle, Young Family Finances,

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