Dec 8 2009 by Ben Schofield, Liverpool Daily Post

LDP Legal: A businessman who had his credit card debts made unenforceable has waded into the consumer credit debate, saying he hopes banks aren’t given an easier time.

A BUSINESSMAN who had his credit card debts made unenforceable has waded into the consumer credit debate.

A dozen test cases were heard last week in Manchester to establish what obligations lenders have when trying to press for repayment of unsecured debt.

Banks were trying to claim they should be exempt from certain parts of the Consumer Credit Act, such as providing a copy of terms and conditions.

But Paul Collins, 47, says banks should not be given an easier time. He was harassed by debt collectors chasing a £2,700 balance on his credit card, money which he had used to give cash flow to his flooring business, which had hit hard times. Mr Collins received daily phone calls and letters asking him to pay up, which, although perfectly legal, put him and his family through trauma. They also threatened to repossess his home.

He successfully saw off the credit card company after challenging the debt with MSB Solicitors, who are also handling one of the 12 cases in Manchester.

Mr Collins, who was receiving cancer treatment at the time, told LDP Legal: “They were aware of my condition and at no time was I allowed to make a small payment to keep things going. They were relentless.

“You’ve got to experience it to realise how much pressure they put you under.

“I hope that they don’t win. God forbid they do. In my mind, if that actually happened, it would be economic meltdown because there’s so many people in debt you would see people on the streets.”

Mr Collins had his debts declared unenforceable in June. He was represented by MSB’s head of consumer credit, Joanna Connolly.

Of the cases in Manchester, Paul Bibby, MSB’s managing partner said: “This is not about people trying to evade paying money that is owed, it is about making sure lenders, large, sophisticated financial institutions organisations, comply with legislation laid down by Parliament for the protection of the consumer.

“The financial penalty laid down by Parliament for their failure to comply with the legislation is that the lenders with the legislation lose the right to enforce the agreement.”

Mr Bibby also said he is optimistic his firm’s case – Carey v HSBC – will succeed. A judgment is expected before Christmas.

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