Unenforceable Credit Agreements

jamalfatty

ditchd wrote: »

So any idea what the loophole is?

All I keep hearing is "if you have pre whatever debt it can be written off"

I agree with you Nick, despite hearing about the theory I have never witnessed the practical.

My understanding and could be wrong is that you ask them to send you a copy of the original credit agreement, when they cant because of poor clerical work, the debt becomes unenforcable.

I've yet to be convinced it works and think it's just wishful thinking on a lot of peoples parts

YorkshireBoy

There's a wealth of information on the internet (and some of it points back to this very website). Just google "unenforceable credit agreements"...both with and without the quotes.

It's not 'new' news though. There was an article on the Fool website way back in 2001/02 but that article went to great lengths to point out that this wasn't a way in which to disregard your moral responsibilities...more a way to beat off the debt chasers who were harrassing customers using questionable techniques.

My how times have changed!

ditchd

Hmm, no suprises. I thought it sounded to be in the too good to be true category, somone like MBNA tripping themselves up.

sombrero

I created my own thread on this after a friend of mine told me that he had become an agent for one of these companies who are in business saying that they can write off pre April 2007 credit card debt.

His firm charges £300 for first card and then £150 for any other cards. You have to pay £10 to get the file from the Credit Card company. He says the £300 plus £150 (for other cards) is given back if the money cant be reclaimed.

On top of that you have to about 10% commission on write offs one month prior to the write off.

I have told my friend that its a con but he believes he is doing a great service to people.

I have dug around and I cant find one person who has had credit card debt written off.

Frugaldom

Isn't it the credit card holder's responsibility to read their credit agreements before signing them and then, once signed, these become legally binding, hence the term, 'always read the small print'? Sorry if this offends anyone but he who spends the money should be made to pay. I DO understand there are exceptions to every rule, but simply wanting a refund of monies you spent years ago is verging on the ridiculous, in my opinion, and I can't quite understand it. I guess the balance transfer fees will just keep on increasing to compensate.

Edited in: Just re-read the above post, yet again. By pre-2007 debt, do you mean the card was used to purchase goods before April 2007 and then not paid, thus incurring further accumulated interest and late charges continuously since then? Or do you mean any debt that occured pre-April 2007, such as people who live off credit cards but pay balance off in full? Either way, goods or services have been purchased and someone has to pay, so I still don't 'get it'.

ditchd

nope I dont get it either and I have every intention of discharging my debt. I did wonder when I posted it if I would be hit by a landslide of happy people.

Doublespresso

This is from today's daily Mail (3rd Spet 2008)

http://www.dailymail.co.uk/money/article-1051918/Can-REALLY-cut-credit-card-debt.html

I've heard about similar servcies from various people and TBH they all sound a bit dodgy! Here's one for example
http://www.lonmor.com/

I haven't been able to positively identify a single case in which the debt had been successfully written off, but the people who sell the service always say that it hasn't been tested in the Courts yet. :rolleyes:

I'd like to know what people here think, and if any one knows of any real/documented success stories.

johnllew

I think people should concentrate on paying off their debts rather than trying to wheedle out of monies properly owed.

Paul_Herring

Daily Mail out of date again. Please read http://www.oft.gov.uk/news/press/2008/consumeralert before even attempting to approach any of these companies.

pt2537

Hi

I agree that claims management companies are not the best way to go,

contrary to what is reported in the DM, it is a fact that you can write off the balance of a credit card subject to the contract being defective

I have personally helped many on the CAG deal with their legal issues and work for a practice which deals with this type of work on a daily basis

there is a body of case law which supports this as well, plus, authoritive works such as Goode Consumer Credit Law and Practice, Blackstones Civil Practice, Inns of Court School of law Sale of Goods and Consumer Credit and also Halsburys Laws of England

Also, just to point out, this is not using loopholes to get out of your debts

If you are dealt a wrong then you are entitled to some recourse yes? well if a lender fails to give you the statutory rights and statements of protections required by the CCA 1974 or gets you to enter into an agreement due to misrepresentation or fraud then are you not entitled to challenge this?

the problem is that many do not understand the complex nature of the CCA1974 and the requirements it places on lenders and therefore see it as debt avoidance but it is not the case,

However, i can see why people would view this as the case

Regards

Paul