McGuffick v Royal Bank of Scotland plc [2009] EWHC 2386 (Comm), [2009] All ER (D) 72 (Oct)
Failure by a bank to comply with an information request by an individual under s 77 of the Consumer Credit Act 1974 would not render the credit agreement between them void.
The agreement between the bank and the individual, although unenforceable until such time as the bank produced the documents sought, remained valid and any continuing default could be reported to the credit reference agencies.
Continued reporting by a bank to credit reference agencies of the state of an individual’s account was not a coercive tool in the hands of the bank, but an essential aspect of responsible lending and of the licensing process.
It merely allowed the agencies to share the bank’s data with other financial institutions for the purposes of assessing credit applications to promote responsible lending.
Any coercive action to compel or secure performance of the removed obligation or liability of the debtor to make repayment did not amount to ‘enforcement’ and reporting to the CRA’s did not constitute enforcement for the purposes of the Consumer Credit Act.Nothing
