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Unenforceable Credit Agreements
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I've yet to see anyone post on here claiming success. And since this has been going on for quite a while, the fact that there has been virtually no success stories mentioned anywhere in the media would indicate that it's not quite as simple as it appears to be claimed.Has anyone had any success with these companies?Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
I've also been told the lenders will try and convince everyone that this claim to utter nonsense to avoid paying out.
There is a point of balance required here.
Most loans and credit cards cannot be made unenforceable and even fewer written off. On the one hand you have the claims companies making a load of false claims giving the impression that virtually all credit pre 2007 can be. On the other hand you have the lenders giving the impression that its a waste of time.
I have had a few claims companies cold call me and the claims they make are quite frankly disgraceful. However, there are credit agreements where it does work. So, you have to go into this with your eyes open and make sure you understand what you are doing and the costs involved (some claims companies charge a fortune for doing virtually nothing). Really do be wary of claims companies making false claims. One was in the press recently for dealing with tens of thousands of applications to claim yet admitted that they had only had two sucesses to date.
Statistically, the odds are you wont be successful. If you are, then its more likely that it becomes unenforceable rather than written off (which kills your ability to get credit in future).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I know it's the Daily Mail, but..
http://www.thisismoney.co.uk/dealing-with-debt/article.html?in_article_id=484062&in_page_id=62&ito=1565Thousands of borrowers who are trying to escape their debts by using changes to consumer law have had their hopes scuppered by a recent landmark court ruling.
[...]
An estimated 100,000 such cases are waiting to be heard in courts around the country, but now these have been put on indefinite hold while senior judges review a sample of 'select cases' at the Commercial Court in London.
Experts believe these cases and any resulting appeals by lenders could take years to resolve, in a possible rerun of the current lengthy court battle over the fairness of bank charges, which itself may not be resolved until 2011.
[...]
The judge at the centre of 170 such cases at Chester Country Court said last Friday he was putting the cases on hold following the referral of 'a few carefully selected cases to the Commercial Court in London on a test basis', in official court documents seen by This is Money.
[...]
[Ms Lipszyc - lawyer] added: 'Even among those who were lucky enough to have their debt written off early on, their debt did not actually disappear. A settlement means the lender cannot pursue them for payment through the courts, but the debt will remain on their credit file until it is paid off.'
So, looks like even if you do have a pre-April'2007 agreement you're in for a long wait, and even then it doesn't get wiped from your credit reports.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
There is a point of balance required here.
Most loans and credit cards cannot be made unenforceable and even fewer written off. On the one hand you have the claims companies making a load of false claims giving the impression that virtually all credit pre 2007 can be. On the other hand you have the lenders giving the impression that its a waste of time.
I have had a few claims companies cold call me and the claims they make are quite frankly disgraceful. However, there are credit agreements where it does work. So, you have to go into this with your eyes open and make sure you understand what you are doing and the costs involved (some claims companies charge a fortune for doing virtually nothing). Really do be wary of claims companies making false claims. One was in the press recently for dealing with tens of thousands of applications to claim yet admitted that they had only had two sucesses to date.
Statistically, the odds are you wont be successful. If you are, then its more likely that it becomes unenforceable rather than written off (which kills your ability to get credit in future).
hi, i said i would try and find out for a friend what impact this may have on her credit score if she is successful in getting her debt to be made unenforceable. she is currently claiming through monster claims for about 6k i think. she is still paying her minimum payment and has paid monster claims some money. i think she said that the cca was not returned to monster claims on request and therefore she is expecting success shortly. although i am half jealous of the likelihood of her getting her debts made unenforceable, i am also a bit disapproving of this means of getting out of debt although that might just be because im too scared to do it myself in case it scuppers my credit file.
we were discussing it the other night and she asked me to try and find out what it might mean for her credit file in future. once a debt is made unenforceable, how does it show on your file??
thanks0 -
i think she said that the cca was not returned to monster claims on request and therefore she is expecting success shortly.
She may be expecting success but its unlikely now given the court action during the week.
we were discussing it the other night and she asked me to try and find out what it might mean for her credit file in future. once a debt is made unenforceable, how does it show on your file??
It will basically show as an unpaid debt in arrears. So, that means that any attempt for credit for her in future will almost certainly be rejected. That means no credit cards, loans, mortgages etc and could also include monthly contracts like mobile phones, car insurance and other things of that sort.
Unenforceable means the lender cannot come after her for the money but it doesnt mean the lender has to write it off. They can leave it on her credit file as a debt owed and show it as default (unpaid and in arrears). If she never plans to have credit of any sort again then she get away with it. However, if she has a view on getting a mortgage in the future or other credit then she will need to repay the debt to get it off her file. For many it will just be a short term victory when they realise the consequences.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
that sounds terrible, how come the claims companies say then that the action cant or wont affect the credit score or credit rating??0
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Is it not the case that credit records only go back a certain number of years? I was under the impression it was 6.
If this is the case, then yes it will affect her credit rating but not forever.
Like dunstonh says - unforceable does not mean it disappears and I don't understand why the advertisements can say this
Sou0 -
that sounds terrible, how come the claims companies say then that the action cant or wont affect the credit score or credit rating??
They lie? The one's I've heard say 'written off' when this is clearly different from 'made unenforceable.'Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Surely they wouldn't be able to report defaults to credit reference agencies if the CCA is missing as they wouldn't have proof of your consent to share your data?0
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Paul_Herring wrote: »I know it's the Daily Mail, but..
http://www.thisismoney.co.uk/dealing-with-debt/article.html?in_article_id=484062&in_page_id=62&ito=1565
So, looks like even if you do have a pre-April'2007 agreement you're in for a long wait, and even then it doesn't get wiped from your credit reports.
Actually Ms Lipsycz's statement is slightly misleading:
"Even among those who were lucky enough to have their debt written off early on, their debt did not disappear. A settlement means that the lender cannot pursue them for payment through the courts, but the debt will remain on their credit file until it is paid off.'
The 'debt' and any reference to it, including any default registered can only remain on the credit file for six years - whether the 'debt' has been paid off or not.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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