Spreadbet debts unenforceable?

[Directional]

http://www.google.co.uk/search?hl=en&q=gambling+"debt+of+honour"+court++&meta=cr=countryUK|countryGB

read something in the paper earlier today about "old law" legislation defining a gambling debt as "debts of honour" and unenforceable in court.

Did a quick google and it would seem to be true. Whether this also applies to Spread Betting debts, who knows since you do have to sign extensive risk disclosure... but at the end of the day its still a bet since its tax free.

Thought I'd put this info out there in case anyone might ever need it.

 

[Danger Field]

In what context? You don't get a lot of option with regard to not paying your SB company. From their side, they don't have a bet with you for your unstaked capital.

 

[Directional]

no but they do give some punters credit - quite feasible for someone to blow their account up and be saddled with a net negative account balance - which according to this law would in theory be uncollectable.

 

[zab]

Superseded by the Gambling Act 2005.

 

[Directional]

have they now made them collectable as a standard consumer collectable? i did read something about new legislation possibly allowing for this to be the case.

I guess Rooney is going to have to fork out for his £700k after all

 

[trendie]

no but they do give some punters credit - quite feasible for someone to blow their account up and be saddled with a net negative account balance - which according to this law would in theory be uncollectable.

with credit; be wary if you decide to not pay any debts, in case they play dirty, and decide to declare a "failure to pay", and affect your credit rating for any future credit you may apply for.

Dont know what the rules regarding data protection, but they may decide to share a non-payment data with other SB companies, which may affect your relationship with other SB accounts.

whether the debt is collectible in theory or not is irrelevant. the high cost of lawyers to prove this will most definitely be expensive in practice.
( you are unlikely to get any kind of legal aid, as the issue was a consequence of your own actions or inactions, and there are more important issues to spend legal aid on. )

overall, not worth the hassle. if you know how to win, just win.

 

[Lightning McQueen]

overall, not worth the hassle. if you know how to win, just win.

excellent point trendie no point at all setting out to be a loser just to see if you can get away with it :cheesy:

Don

 

[zupcon]

I'm not sure about the situation with SB companies, but as Arbitrageur points out it isn't possible to enforce payment of gambling debts via legal means.

The thing to remember of course is that there are a wide spectrum of “alternative” methods used to recover debts of this nature. I assume that the bookmaker could potentially "sell" the debt to any number of debt collection agencies, some of whom may employ methods that may well exceed the bounds of gentlemanly conduct (if you catch my drift)

I'm reminded of attending a chamber of commerce “networking” meeting in Sheffield a decade or so ago where I was approached by a monster of a man representing a debt recovery agency based in Barnsley, South Yorkshire. I still retain his business card as an example of simple yet effective advertising. The company logo was a skull and crossbones, the cross being formed by a baseball bat, and a hammer, the card contained the slogan “Owed Money ?... Call Us... We Don't F**K About”.

Priceless !

Regards

Mick

 

[MarvinS]

The first case that took precedents in the UK for spread betting was Cityindex vs someone, i can get the case notes. I know for a fact some companies have given credit lines in excess of £10m, so i am sure they would not have done this without legal backing.

 

[Visaria]

Spreadbet losses are definitely enforceable in law. They are an exception to the 'gambling debts are unenforceable' rule. It works both ways: punters can also sue SBs if they fail to pay up.

 

[JP1966]

SB's firms certainly used to be very keen to chase debts.

If you worked in the City the first line of attack would be to threaten to call your head of HR.

If money was still not received they used to know some very large people who seemed remarkably adept at getting people to pay up.

 

[MarvinS]

Yes firms will know that if you are on the FSA register you are in the city.

I do not think getting the heavy's in has been on anyone's agenda, however alot of retailers use the heavy's at the last resort so why would it be any different for a spread betting company?

 

[PhiltheBear]

Let's nail this. Spreadbets - of ANY type - are treated, in law, as 'Contracts for Differences'. Way back in the 1980/90s City Index brought the first action against a punter for an unpaid debt (I think it was for about 40K). The case went through all the levels of appeal and was decided in City Index's favour at each stage. Contracts for differences are covered by the Financial Services Acts - not by Gambling leglislation.

Moral - If you are thinking of welching, don't.

 

[Directional]

nice one, thanks for clarifying