MSE News: OFT kills 'debt write-off' industry

DebtWriteOffMaster

Deep_In_Debt wrote: »

What???

So I just tell my creditors that I don't fancy paying my debts off...the money I owe them...so I'm not going to bother?

Surely the agreement you sign with them when you take out credit is legal enough? if not, then how can they get charging orders, take people to court, get CCJ's etc if there is no legal requirement to pay?

Granted some agreements are unenforceable but that does not mean they are not legal.

Yes, agreed, people who pay money to those companies are foolish.

Think I'll ring all my creditors tommorrow and tell them I don't want to pay my debts so I'm not going to bother.:eek:

That is exactly what i did though, its now 3-4years later, and i haven't had any letters from any court. :beer:

For the 1st 5-6months they will write you a few letters per week, and try phoning you a couple of times per day,
but if you just bin all the letters and change your number so they can no longer phone you,
they just give up bothering to try chasing.


If you own property then they will take you to court as they can prove you have a valuable assest.

But if you rent instead of having a mortage, the bank has no way whatsoever of knowing if you work or are on benefits, and if you work what your salary income vs rent and bills outgoings are.

Meaning they wont bother taking you to court as that will cost them a few thousand quid extra,
and if at court it turns out you are on benefits (so no spare income) or are on a low wage which after all reasonable living costs such as your rent/food/bills/travel to work you can only afford to repay £5 per month,
then that is all that you can and will be asked to repay by the court.


Many people think that the banks have magical powers which mean that the month you stop repaying your cards they can just post you a court summons which will mean you have to go court where they will order you to repay hundreds of quid per month,
however in reality that is total and utter nonsense!


Look at the facts and numbers given by the bank of england itself about how many tens of millions the banks are writing off everyday this year-
http://www.walletpop.co.uk/2010/09/01/banks-write-off-debts-of-3-5bn-as-borrowing-brits-hide-financia/



Between April-June this year 2010 the UK banks wrote off 3.5billion pounds of debt of the people who refused to repay it.

When you think there are only 35million people aged 18-65 in this country,
that equates to the banks writing off £1,000 for every single person aged 18+ in this country!

And if you use a conservative estimate that only 1/20 people actually refuse to repay debt and so have to have it written off by the bank,
that means £20,000 of debt written off per person. :cool:

jadex

Sceptic001 wrote: »

The headline on the article is grossly misleading. In what sense has the OFT "killed" the debt write-off industry? It has issued guidance to consumers. It is like saying that the health warning on cigarettes killed the tobacco industry. :mad:

true, and also OFT has no power, they are neither parliament nor court

and, to be precise, debts are not written-off, they still exist (even statute barred) but can't be enforced to pay back via court

jadex

danothy wrote: »

I would agree with the sentiment when it's the chancers who've heard about unenforceability and don't understand that it's to protect people from being unfairly pursued rather than to get out of paying a legitimate debt.

chancers are everywhere in every aspect of life
some chancers do try to not pay back their debts
other chancers print out hundreds of pdf files on company printers using not-their-own paper and toner
other chancers pay for x-rated movies and claim it as MPs expenses
other chancers get disability benefits and attend dancing lessons
other chancers (banks) had 30 years to comply with CCA1974 act but they thought about themselves as "being the law and above the law"
and so on....