Credit Hire – The Doorstep Challenge

Further to our Technical Bulletin of March 2010 regarding the Cancellation of Contracts made in Consumer’s Home or Place of Work etc Regulations 2008 there is still a lack of certainty in the market place regarding how courts views the application of these regulations to Credit Hire cases.

As a firm, where we consider the Regulations apply, we put claimants to strict proof pre and post litigation to test compliance.

CHO’s and claimant’s representative are taking the issue seriously and addressing the Regulations at an early stage. Rather than burying their heads in the sand they are understandably eager to confirm in open correspondence where the hire agreement was signed and secondly if the Regulations apply often disclosing a copy of the relevant cancellation notice.

It should be noted that the cancellation notice should also be signed and dated by the claimant.

A recent small claims case came before His Honour Judge Singleton in Gloucester County Court (L. Parnapalli – v – Linda Taylor) which was an encouraging result for Defendants.

His Honour Judge Singleton found the following:

• The Regulations were in force at the time that the hire agreement was signed.
• The hire agreement was signed in the claimant’s home.
• The claimant was not provided with the required notice by Regulation 7 (2) and (3).
• Given the lack of notice the contract of hire was unenforceable against the claimant and the claimant was not entitled to claim hire charges from the defendant.
• The claim for Credit Hire was dismissed.

Whilst his decision is only a small claims track decision, His Honour Judge Singleton carries considerable weight and this decision should not be ignored.

Tactically this case should and will be pleaded in any defences where the Regulations argument is applicable. Round one goes to the Defendant, however it remains to be seen whether courts up and down the country will take a similar view as that of His Honour Judge Singleton.

If you would like any further information or to discuss these matters further please do not hesitate to contact.

Max Withington on:

DDI 0161 214 5835 or by e-mail at max.withington@horwichfarrelly.co.uk.