A MERSEYSIDE law firm launched a dedicated consumer unit, after being deluged with complaints from people who believe they have been the victims of legally unenforce-able loan agreements.

Kirwans Solicitors says industry estimates suggest as many as 25% of loan agreements drawn up before April, 2007, may be unenforceable, which could result in the balance of a loan or credit card being written off.

Among the areas where challenges are most common are personal loans, secured loans, car loans and hire purchase agreements.

Kirwans’ unit is being headed up by partner Simon Gibson, supported by his colleague, Philip Gray. They say there could be thousands of potential claimants.

Mr Gibson said: “We believe there are a lot of potential cases where people have loans of between £5,000 and £25,000.

“There are a number of ways in which a loan can be found to be irredeemably unenforceable, including broker fees being included in the loan agreement, and the mis-selling of Payment Protection Insurance.”

To coincide with the launch of the new consumer unit, Kirwans is offering to carry out a Consumer Credit Audit to establish if someone has a good claim.

Simon added: “Following the audit, we will then either act on a No Win No Fee basis or, where appropriate, consider legal aid.”