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Parts of the Consumer Credit Act allow a court to rewrite any credit agreement
(including a mortgage) if it thinks the agreement is an 'extortionate credit
bargain'.
This means that it:
- has payments which are 'grossly exorbitant' (too high compared with
similar agreements); or
- 'grossly contravenes the ordinary principles of fair dealing', which means
where you have been a victim of sharp practice.
Courts have used this law to reduce very high interest loans, especially in
cases where the person signing the agreement was pressurised into signing.
But this is not easy to prove, and if you think you might have a case, you
should get expert advice from an adviser or the trading
standards department of your Council.
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last updated
16/08/07
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