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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.

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