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

Court of Appeal confirms all employment tribunal judgments must be published on the register, except in national security cases

Under the ET Rules, all judgments and accompanying written reasons must be published on a pubic register which the general public can access online.

View blog

Marriott International: a look behind the ICO’s £99m fine and what this means for corporate acquisitions

Last month, the Information Commissioner’s Office (ICO) announced notice of its intention to fine (NOI) Marriott International, Inc. £99m for infringements of the GDPR.

View blog

SFO fail to secure individual criminal convictions following Deferred Prosecution Agreement

On 16 July 2019 the Serious Fraud Office released details of the Deferred Prosecution Agreement reached with Sarclad Ltd in July 2016.

View blog

Supreme Court backs employers seeking to enforce restrictive covenants: Tillman v Egon Zehnder Ltd

The Supreme Court in Tillman v Egon Zehnder Ltd has determined that where post-termination restrictive covenants (i.e. “non-compete” clauses) in employment contracts go further than reasonably necessary to protect an employer’s business interests, it can apply the ‘blue pencil test,’ severing the offending words and leaving the remaining enforceable clause in place.

View blog

mailing list sign up

Select which mailings you would like to receive from us.

Sign up