How are distressed borrowers expected to foot the costs involved in going to court over such a matter and taking the risk that they might lose (and maybe face additional costs)?!All default penalty interest rates are perfectly legal until they are challenged as being excessive , either through the financial ombudsman's office or through the courts.
The penalty must not be excessive otherwise it will risk as being classed as an unfair term.
All default penalty interest rates are perfectly legal until they are challenged as being excessive , either through the financial ombudsman's office or through the courts.
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It means exactly what it says.What does this mean?
Really? I am not aware of any such cases.
The UK ombudsman has certainly upheld a number of complaints relating to charges applied by lenders to mortgage accounts in arrears for a variety of reasons but I am unaware of any cases where the UK ombudsman or courts found an interest charge to be unfair on the basis that it was "excessive".
Really? I am not aware of any such cases.
The UK ombudsman has certainly upheld a number of complaints relating to charges applied by lenders to mortgage accounts in arrears for a variety of reasons but I am unaware of any cases where the UK ombudsman or courts found an interest charge to be unfair on the basis that it was "excessive".
Well you would want to look the cases up, they are there, but you are right, there is no unfair terms directive in the USA, they only judge items as being fair or unfair, excessive penalty interest rates on arrears is class as excessive, simple really, maybe the European Union could take a page out of the USA's legislation.I'm not actually but in any event the Unfair Contract Terms Directive has no application in the US.
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