Unenforceable Credit Agreements

dunstonh

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

Take it with a pinch of sort. i have had calls from claims companies telling me I can claim back all sorts of things. One even said I could claim back insurance on a case I took out myself (i.e. technically i sold it to myself, so I would have to decide if a complaint was valid on myself and I would have to pay the redress to myself).

They will say its unenforceable to save them having to refund the £495.

The fact they are telling her to stop payments is disgraceful and its the one thing you warned you should never do and I see that as a good enough reason to consider this claims company a cowboy outfit (as too many are).


The bottom line is that they "feel" it is not unenforceable. It is not a fact. It is just an opinion. Until it goes to court, it will remain enforceable and in the majority of cases the court has been ruling in favour of the lender. Before the December cases that Premier mentions, lenders did often settle out of court. However, since the court ruling, the lenders seem happier to let the court decide.

nicknackpaddywack

They did tell her to keep paying it until she had the go ahead from them. I think I am going to give them a ring to see what they have to say.

nadiam

I have been approached by a company claiming they can get my credit card balance written off too. They are ringing me back this week about it, and I am unsure what to do.

They do require a fee of £395 paid up front, apparently to cover solicitors costs, etc., but they only charge fee if they can guarantee your balance will be written off. The balance must be over £1,000 but it doesn't have to be from before 2007, only the time the credit card was taken out, and agreement signed has to be pre 2007.

I aren't usually silly enough to pay anybody money upfront, but I have checked the website out and they are regulated by the Ministry of Justice, and not just by a logo, I actually checked MOJ website too. Does this mean its any more trustworthy?

They also claim that they only charge the one off fee of £395 and you keep 100% of settlement plus interest.

The fee can also be charged to the credit card before they pursue case, so in effect be written off with debt.

They reckon it will not adversely affect my credit rating!

ILW

Complete rubbish, and if you pay them with a credit card you are expecting to be "written off" you could be charged with fraud or deception.

stebiz

nadiam wrote: »

They also claim that they only charge the one off fee of £395 and you keep 100% of settlement plus interest.

The fee can also be charged to the credit card before they pursue case, so in effect be written off with debt.

They reckon it will not adversely affect my credit rating!

This is bull. For a start you will have no 100% settlement plus interest to keep, even if the card debt was found unenforceable.

If you use the card with intent, as suggested, you would leave yourself open to fraud.

It could affect your rating.

Cowboys!!

~Brock~

nadiam wrote: »

I have been approached by a company claiming they can get my credit card balance written off too. They are ringing me back this week about it, and I am unsure what to do.

They do require a fee of £395 paid up front, apparently to cover solicitors costs, etc., but they only charge fee if they can guarantee your balance will be written off. The balance must be over £1,000 but it doesn't have to be from before 2007, only the time the credit card was taken out, and agreement signed has to be pre 2007.

I aren't usually silly enough to pay anybody money upfront, but I have checked the website out and they are regulated by the Ministry of Justice, and not just by a logo, I actually checked MOJ website too. Does this mean its any more trustworthy?

They also claim that they only charge the one off fee of £395 and you keep 100% of settlement plus interest.

The fee can also be charged to the credit card before they pursue case, so in effect be written off with debt.

They reckon it will not adversely affect my credit rating!

These companies work on the basis of 'there's one born every minute', and as far as they are concerned it's currently your minute.

nicknackpaddywack

I have just spoke to them and the credit card company is in breech of a few things. For instance, putting interest on interest free balance transfers, extra interest on cash advances. They are sending a letter out explaining everything what they are in breech of. The claims company said it is up to us if we want to keep paying the bill until it goes to court, which they think will be unlikely to get that far. They basically said it is unenforceable until a judge proves otherwise?

ILW

nicknackpaddywack wrote: »

I have just spoke to them and the credit card company is in breech of a few things. For instance, putting interest on interest free balance transfers, extra interest on cash advances. They are sending a letter out explaining everything what they are in breech of. The claims company said it is up to us if we want to keep paying the bill until it goes to court, which they think will be unlikely to get that far. They basically said it is unenforceable until a judge proves otherwise?

Wrong again, it is entirely enforcable until a judge says it is not. These people will say anything to get your money off you.

Paul_Herring

ILW wrote: »

These people will say anything to get your money off you.

It would appear to be too late for that; they already have the money. They're saying things so they don't have to give it back at the moment.

Later they'll stop doing that, and simply refuse to give it back anyway.

At least until they go bankrupt, like that firm did a few months back - their name escapes me at the moment...

dunstonh

For instance, putting interest on interest free balance transfers, extra interest on cash advances.

Lenders can do that and its allowed.

The claims company said it is up to us if we want to keep paying the bill until it goes to court

no its not. If she stops paying before it goes to court then it will incur fees and charges which would be payable if the court case is lost (only only a tiny number win).

They basically said it is unenforceable until a judge proves otherwise?

Complete bull. Its the other way around. Its enforceable until a judge states otherwise.

Basically, they are trying to justify the reasons why dont have to return the £495 your mum paid. By saying its unenforceable they have done their job and get to keep the £495. Now they will try it on and in with the lender and see if they cave in. Lenders may have done last year but since the court cases in December and the OFT guidence, they are less likely to. This is why so many claims companies are now going tits up. Its only the dodgy ones that are still trying the unenforceable angle.