Unenforceable Credit Agreements

Premier_2

nicknackpaddywack wrote: »

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

nicknackpaddywack wrote: »

...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?

So what is it on planet nicknackpaddywack? :huh:
Has it been to court yet or not? :cool:

Over & out for me on this one. Have a nice day!

ILW

I have not had a single phone call in the last couple of months regarding debt "write offs". Before that I was getting 2 or 3 a day.
I believe the two major players Cartel and Kerobo have ceased trading.

prettyvizsla

I was contacted on Friday last by one of these companies and was told that they were working in conjunction with the government to reclaim money paid to credit card companies, in particular natwest and barclay's. Its the usual story about how many breaches made to the contract and wanting £395, with a 100% money back guarantee if the agreement is found enforceable. I was not taken in but did check it all out over the weekend.

Today I have again had a call from them, this time I was able to ask more informed questions!
I was told "it would NOT affect my credit rating in a negative way, in fact it would improve it"
"It is not fraudulent to charge their fee to the credit card they pursue".
"It takes a maximum of 12 weeks from beginning to resolution ".
"It no longer goes to court but directly to the ombudsman at the FSA".

The money £395 has to be paid up front then a pack with the terms and conditions would be sent to me, he got quite cross when I asked why, if they are as reputable as he said, they would demand payment before I could view T & C's.

No doubt as it gets closer to Xmas these companies will get more desperate! he even went so far as to tell me his company are like one big family and none of them drive flash cars or own big houses, I think that says it all. So others beware if you get a call asking if you want to "cancelyourloans".;)

dunstonh

prettyvizsla wrote: »

I was contacted on Friday last by one of these companies and was told that they were working in conjunction with the government to reclaim money paid to credit card companies, in particular natwest and barclay's. Its the usual story about how many breaches made to the contract and wanting £395, with a 100% money back guarantee if the agreement is found enforceable. I was not taken in but did check it all out over the weekend.

Today I have again had a call from them, this time I was able to ask more informed questions!
I was told "it would NOT affect my credit rating in a negative way, in fact it would improve it"
"It is not fraudulent to charge their fee to the credit card they pursue".
"It takes a maximum of 12 weeks from beginning to resolution ".
"It no longer goes to court but directly to the ombudsman at the FSA".

The money £395 has to be paid up front then a pack with the terms and conditions would be sent to me, he got quite cross when I asked why, if they are as reputable as he said, they would demand payment before I could view T & C's.

No doubt as it gets closer to Xmas these companies will get more desperate! he even went so far as to tell me his company are like one big family and none of them drive flash cars or own big houses, I think that says it all. So others beware if you get a call asking if you want to "cancelyourloans".;)

They dont half tell some porkies to try to get people to sign up.

The earlier points are already covered in recent threads. However, just will add that the FSA do not review consumer complaints and the FOS will not rule that credit is unenforceable.

Also, they are meant to supply their service agreement before they take any money.

Premier_2

Consumers have been warned not to be duped by firms that claim they can write off loan or credit card debt ...

http://www.moneysavingexpert.com/news/loans/2010/10/oft-kills-debt-write-off-industry

Paul_Herring

Premier wrote: »

http://www.moneysavingexpert.com/news/loans/2010/10/oft-kills-debt-write-off-industry

Headline:

OFT kills 'debt write-off' industry

Article:

The alert could mark the final nail in the coffin of the so-called 'debt write-off' industry that grew rapidly in 2008 and 2009 (see the Write off your debts? guide).

(emphasis mine.)

Could we get someone at MSE to correct the misleading headline? Or correct the body of the article; whichever bit's wrong.

dunstonh

Could we get someone at MSE to correct the misleading headline? Or correct the body of the article; whichever bit's wrong.

For a moment I thought the OFT had made a surprise ruling that had to be followed. However, its just a consumer warning. So, like many other MSE NEWS headlines, the headline does not reflect the actual news.

That said, the OFT warning is welcome, albeit belatedly.

fermi

dunstonh wrote: »

For a moment I thought the OFT had made a surprise ruling that had to be followed. However, its just a consumer warning. So, like many other MSE NEWS headlines, the headline does not reflect the actual news.

That said, the OFT warning is welcome, albeit belatedly.

Not just that. They have also published some official guidance documents.

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/unenforceable-credit-agreements

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/OFT1272.pdf

and

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/OFT1266.pdf

Borrowers and hirers are able to ask creditors to send them information about their credit agreements. If information is not provided within 12 working days, the debt becomes unenforceable.

Sections 77, 78 and 79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account and hire agreements.

Under these sections a debtor can pay £1 to get:

• a copy of their agreement
• copies of some of the other documents mentioned in their agreement
• a statement of account.

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor:

• cannot:
  - make the debtor pay the debt before they're supposed to
  - get a court judgment against the debtor
  - take back anything hired or bought on credit, or take anything used as security in the agreement.

• can:
  - ask debtors to pay what they owe
  - send a default notice
  - pass information on to a credit reference agency
  - pass information on to a debt collector
  - sell the debt to someone else
  - take the case to court.

If you are a business and would like more detailed guidance, download OFT1272 - Guidance on section 77, 78 and 79 of the Consumer Credit Act 1974 - the duty to give information to debtors and the consequences of non-compliance on the enforceability of the agreement (pdf 330kb).

If you are a consumer and would like more information or you are a business that would like to send information to your customers view OFT1266 - Need information about your credit or hire agreement? (pdf 83kb)