Daily Archives: December 27, 2014

Unenforceable Agreements and Credit Rating Agencies

A striking feature of the credit market over the past decade or more is the growing importance of credit rating: its significance for an applicant in urgent need of credit for his business cannot be overstated. This has given rise to some difficult legal problems: an obvious one is the liability of a credit rating agency (‘CRA’) for negligent entries. Another is whether a CRA is entitled to take into account debts which are unenforceable for want of formality: this can often happen because the creditor has failed to comply with statutory provisions designed to protect certain classes of debtors or provisions relating to writing or execution. The question was considered recently by the Court of Appeal in Grace v Black Horse Ltd.

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