Advice Centre

Unenforceable Credit Agreements

Here's what you need to know about unenforceable credit agreements.

What are UCAs?

Borrowers and hirers are able to ask creditors to send them information about their credit agreements. If information is not provided within 12 working days, the debt becomes unenforceable until they get the information they asked for.

Sections 77, 78 and 79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account and hire agreements. Under these sections a debtor can pay £1 to get:

  • Agreement - a copy of their agreement
  • Copies - copies of some of the other documents mentioned in their agreement
  • Accounts - a statement of accounts

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor:

  • Cannot - make the debtor pay the debt before they're supposed to, get a court judgment against the debtor, and take back anything hired or bought on credit, or take anything used as security in the agreement
  • Can - ask debtors to pay what they owe, send a default notice, pass information on to a credit reference agency, pass information on to a debt collector, sell the debt to someone else, and take the case to court

If you are a business and would like more detailed guidance, download OFT1272 - Guidance on section 77, 78 and 79 of the Consumer Credit Act 1974.

If you are a consumer and would like more information or you are a business that would like to send information to your customers view OFT1266.