U - Unenforceability
30/10/14
GRACE v BLACK HORSE LIMITED [2014] EWCA Civ 1413
Whether a credit agreement is temporarily or irredeemably unenforceable by virtue of non-compliance with the Consumer Credit Act 1974, the underlying agreement is not void but remains in place together with its rights and obligations (McGuffick v RBS, 2009 applied). Nevertheless, in the case of an irredeemably unenforceable agreement it is not accurate to describe the debtor as a defaulter in the records of a credit reference agency, without at least recording the unenforceability of the agreement in the same entry. To do so was a breach of statutory duty under the Data Protection Act 1998. Whether the same applies when the agreement is only temporarily unenforceable was left open for decision in a suitable case.