One comment on “Small Claims Track. Are you really safe from costs?

  1. The SCT is a bit like the ET where the norm is not to award costs but they can still be awarded in certain cases.

    The problem with the contractual clauses you refer to is that, in many cases, the debtor does not have a copy of the agreement, which is precisely the reason they are arguing s.78 issues such as they received just an application form and/or a copy of current or recent T&Cs. While there may be people who use ss.77/79 just to see what the creditor can produce and use their failing to their advantage, in the vast majority of cases people really haven’t got a copy of their original credit agreement stashed away.

    When taking out a credit card, most people wouldn’t have been aware that the debts they incurred could end up secured in their homes to start with, let alone have costs awarded against them. When you took out an MBNA card with a £500 limit in the ’90s, you would never, ever have imagined it could end up turning into a £20k+ debt secured on your home.

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