If you, like very many others are finding it hard to pay your debts you will probably be very surprised to learn that you may not have to! This is because of legislation laid out in the Consumer Credit Act of 1974 and 2006 which says that if a finance agreement for a loan or credit card was worded incorrectly it will be deemed an unenforceable credit agreement and you can have your debt cancelled legally. This legislation relates to personal loans, credit cards, hire purchase, store cards etc and literally thousands of people are currently challenging their lenders to see if they can have their agreements declared unenforceable.
The process
It is very easy to find out if your agreement is unenforceable. You need to get in touch with a company that has specialist advisors in this area. They will send a letter of authority and a fair trading statement for you to sign and return to them. Then, for a small refundable fee the agreement will be assessed to see whether it is unenforceable. If this is the case they will write off the debt. You will get to keep any goods bought with the loan or credit, and in some cases past payments will be refunded to you.
Other considerations
You can claim for any finance agreement as long as the initial loan or amount of credit was for over £2000 and was taken out before April 2007. Once the organisation has been appointed by you to instigate your claim you will not have to deal with your creditor - they will take over that on your behalf. You can still apply to have your agreements assesed if you are on a debt management plan. Once the agreement has been cancelled and the debt written off your credit file will appear as if you have paid the amount off in full so this process will not affect your credit rating.
Case study and what the press say:
“A Wetherby man has had over £15,000 of credit card debt written off after Bank of Scotland backed down from a showdown with a claims management company minutes before the case was due to be heard in a Leeds court.
Judge Langan at Leeds County Court believes that the bank didn’t fight the case because it feared highlighting failings and opening the floodgates to further claims.”
“The bill gives us the once-in-a-generation opportunity to prevent more people becoming trapped in grossly unfair credit deals.” BBC
“There are undoubtedly thousands, if not millions, of other unfair loans out there still to be checked.” - thisismoney.co.uk
‘A couple who feared losing their home after a loan of less than £6,000 spiralled to more than £380,000 expressed their relief last night after the court of appeal ruled the debt should be wiped out… They said the loan agreement was unenforceable under the Consumer Credit Act.’ - Guardian.co.uk
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