The Finance & Leasing Association (FLA) has welcomed the Office of Fair Trading’s ‘clarity’ on unenforceable credit agreements.

The regulator began its consolation over consumer credit guidance yesterday, providing new draft guidance on unenforceable credit agreements.

Fiona Hoyle, head of consumer finance at the FLA, said: “This is another welcome step to avoid consumers being misled into thinking that their credit agreement is unenforceable. There has been an alarming rise in the number of companies claiming to be able to get debts written off and the OFT clarification is helpful to both consumers and lenders.”””