0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

a bankrupt’s signed application can amount to accepting terms & conditions

2 December 2016

A bankrupt who failed to annul a Bankruptcy Order on the basis that the necessary formalities for credit card agreements had not been complied with has been refused permission to appeal that decision.

The bankrupt claimed that a Bankruptcy Order should never have been made on the basis that (1) the credit card agreement failed to comply with the Consumer Credit Act as evidenced by the creditor’s failure to produce the full terms of that agreement; and (2) the notice of default served on her by the creditor was defective under the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 as it sought the entire balance due on the card and not just the arrears required to remedy her breach.

On appeal, the Judge was satisfied that the bankrupt had been supplied with the full terms and conditions of her credit card agreement at the time that she signed her original application form. The judge was also satisfied with the validity of the creditor’s demand.

The full judgment of this case is still awaited and an update may be issued in due course to expand on any further points to note.

This case serves as an important reminder to debtors of the Court’s prevailing attitude towards bankruptcy proceedings and its reluctance to frustrate proceedings based on mere technicalities. In the present case, even though the Creditor could not provide a copy of the relevant agreement there was sufficient other evidence to satisfy the Court that the Debtor had known what she was signing up to.

related opinions

Can an application to postpone a hearing be refused?

This case highlights the importance of Claimants obtaining their own medical evidence in such matters especially when it is pivotal to their claim.

View blog

A landlord’s promise, a tenant’s power

When it comes to leases, most people believe that landlords hold most of the power. However, in relation to long residential leases, the tables may well have recently turned in one respect at least following a recent Supreme Court decision.

View blog

High Court extends employer’s duty of care to Dubai whistleblower

Employers with global networks which include a base in the UK should be aware that they can face expensive and damaging negligence claims from employees who are based overseas regardless of the whistleblowing regime.

View blog

IR35 changes delayed to 2021

The much heralded, and controversial, changes to IR35 have fallen victim to Covid-19.

View blog

mailing list sign up

Select which mailings you would like to receive from us.

Sign up