Unenforceable Credit Agreements

nicknackpaddywack

Hi, I am new here. My mam has just had her credit card deemed unenforceable. Is it too good to be true? It got to the stage she was taking money from the card to pay the bill and had to do something about it. I looked into things for her and it has come back that it is infact unenforceable. We are just a little worried that this is going to come back and bite her.

dunstonh

My mam has just had her credit card deemed unenforceable.

Are you saying she has gone to court and the contract has been ruled unenforceable or is it a claims company saying it is unenforceable?

If the court has ruled it unenforceable, it should be noted that doesnt mean it is written off. It will remain on her credit history as an unpaid debt in arrears if she chooses not to pay it. So, its not quite an easy ride as that will prevent future credit. Although a provider may at that point take an agreed amount to write it off.

nicknackpaddywack

It is the company that has said it is unenforceable. They said she can stop making payments now. They have made it clear that they are one of the few companies that go through the courts. They also said while it is possible to get a black mark against your name during the process of everything getting to the right departments. They said if that happens, all I need to do is contact them and they will apply to have it removed. Does this sound true? It's not s much a case of her not wanting to pay her debts, she has had this card for years and had paid far far more in interest than she owes. The minimum payment does not even cover he interest. She has had to take money from the card to pay the bill at times. She would have been paying for it for the rest of her life. She is not concerned about the 6 years she will have to wait for credit, after all of this she never wants credit again. We are worried that any of this will effect her existig credit, like her mortgage?

dunstonh

It is the company that has said it is unenforceable.

Just to clarify as its still not clear. Its a claims company that is saying that, not the lender?

They said she can stop making payments now.

You shouldnt stop payments unless the lender agrees or the court has made a ruling.

They also said while it is possible to get a black mark against your name during the process of everything getting to the right departments. They said if that happens, all I need to do is contact them and they will apply to have it removed. Does this sound true?

No. The courts ruled in December that lenders can leave the debt on your files as being unpaid and in arrears. The lender can decide to not show it in arrears but the claims company has no say in the matter.

We are worried that any of this will effect her existig credit, like her mortgage?

It will stop her getting a new mortgage (including remortgaging).

If this is a claims company saying all this then be on guard. Only the courts can make the debt unenforceable. The claims company may have an opinion but it doesnt mean they will win in court.

ILW

Are this claims company asking for a fee?

stebiz

dunstonh wrote: »

Just to clarify as its still not clear. Its a claims company that is saying that, not the lender?

You shouldnt stop payments unless the lender agrees or the court has made a ruling.
No. The courts ruled in December that lenders can leave the debt on your files as being unpaid and in arrears. The lender can decide to not show it in arrears but the claims company has no say in the matter.

It will stop her getting a new mortgage (including remortgaging).

If this is a claims company saying all this then be on guard. Only the courts can make the debt unenforceable. The claims company may have an opinion but it doesnt mean they will win in court.

Agree with most of the above, but if she doesn't mind getting a 'default' against her name, she could simply stop paying. This way you can bounce the ball back in the CC companies court, and see if they want to take it to court. Most won't.

And tell the other company to BOG off. That is unless you want to pay them money, for doing a job you can do yourself. Just needs a bit of reading up on.

Premier_2

dunstonh wrote: »

Just to clarify as its still not clear. Its a claims company that is saying that, not the lender?....

I think the new poster is suggesting it's the credit card company that has admitted the debt is unenforcible.

But I must admit, it isn't very clear. I mean even the poster doesn't seem convinced. :huh:

I just hope the poster has all this in writing ...

nicknackpaddywack

Yes it is the claims company that is saying the debt is unenforceable. We have everything in writing from them but nothing from the credit card company itself. She has paid a fee to the company, £495 initial patment for some file? This was to be refunded if it came back that the debt was enforceable, and 10% of the debt, which is just over £15,000. In the claims companies defence, they have been very co operative and have worked very fast and kept us up to date with everything. I did not know it was something I could do myself though.
Is it right that the default can only stay on file for 6yrs?
Giving the fact she doesn't mins about the black mark against her name, especially as it is only for 6 years, would it be adviseable to stop paying?

Premier_2

nicknackpaddywack wrote: »

Yes it is the claims company that is saying the debt is unenforceable. ...

:rotfl:

Yeah, and there's a claims agent who who keeps ringing me telling me I've won the Spanish Lottery too ...:D

Meanwhile, back on planet earth:

High Court 'closes debt write-off loophole'

Consumers who try to wriggle out of their credit card debts based on a technicality have been dealt a blow after one loophole was closed by the High Court, it is claimed.

Legal experts insist the decision means the argument that debt cannot be enforced when a lender cannot provide an exact copy of the original credit card agreement, or where the agreement contains a minor error, has been blown out of the water for many ...

Only a court can ultimately decide whether the agreement is unenforcible (although if the creditor had said it was, I doubt the debtor would argue otherwise).
Ignore anyone else who tries to tell you otherwise.

nicknackpaddywack

I dont have the letter to hand but is said it was unenforceable because of a number of reasons. It wasn't just the absence of the signed credit agreement. The credit card company was in breech of a number of things.

Premier, do you not think it sounds legitimate?

Oh, and as I said, the claims company said it has been to court. Should I believe them?