BBC Panorama write off debt | Loophole clears couple’s debts | Write off illegal unfair loans | Consumer Credit Act 1974

BBC Panorama Programme: 'Can't Pay, Won't Pay'

As more people find themselves in debt, one couple found loopholes in their credit agreements to avoid paying tens of thousands of pounds. But a High Court judge had the final word.

Amanda and Basil Rankine ran up debts of £120,000 after their mortgage advice business collapsed and they found themselves unable to afford their monthly payments.

Clear your Credit Cards and Loans legally due to flawed Credit Agreements

Due to the changes in legislation of credit card and unsecured loan agreements pre April 2007 you could be entitled to write off your credit card or unsecured loan agreements.

On many occasions you could be able to disregard your credit card balance in full due to the high probability that the credit agreement you originally signed is flawed and completely unenforceable.

Under current consumer credit laws, when you enter into a contract with a bank or credit card company, the paperwork must contain certain prescribed details that you have clearly signed up to.

Debtor gets five-year stay on unfair loan agreement

Last week, a debtor secured a five-year block on his home repossession in a claims management case against his lender Blemain Finance, after consumer credit law was used to challenge his loan agreement.

The Claims Management Company acting for Cardiff-based Peter Bentley, used the meaning of unfair relationships under Section 140A of the Consumer Credit Act (CCA) 1974 to claim that his contract with Blemain Finance was an unfair loan.

Have you been the victim of unfair loan agreements? Take the 60 second test >

£21bn of credit card debt unenforceable and could be written off

More than £21bn of the UK’s credit card debt could be cleared due to unenforceable credit card agreements and could be written off, according to financial claims management companies.

They have based their projection partly on an estimate from money education charity CreditAction that total credit card debt in the UK now stands at around £53bn. It is estimated that 40 per cent of all financial products bought by consumers can be claimed against.

Claims management firms say that an average client has 10 financial products, of which four can be claimed against.

Do you have an unenforceable credit card? Take the 60 second test >

Previous estimates around the amount of unenforceable credit agreements put the figure at 25 per cent, but this does not tally with many observations. On average, they say their customers can claim against as much as 40 per cent of their credit agreements.

There are specific rules that lenders must adhere to when they sell a financial product to a consumer. If these have been breached, lenders should admit their mistakes and stop dragging their heels through the legal system. This only results in unnecessary additional legal costs for all involved.

Figures also show that the UK collective credit limit on credit cards is £158bn, which is an average credit card limit of £5,129 per person. The average interest rate on credit card lending is currently 17.6 per cent – 17.1 per cent above base rate (0.5 per cent).

The Bank of England announced earlier this month, however, that personal borrowing fell by £600m in July, taking the total owed by individuals down to £1.457 trillion.

Do you have an unenforceable credit card? Take the 60 second test >

185,000 PPI complaints to be reopened | PPI Claim

Companies which sold payment protection insurance (PPI) will have to reopen 185,000 rejected complaints in light of new guidance over how the scheme should be sold. Make a PPI Claim now >

The Financial Services Authority has ordered firms to redress the complaints under new guidance that will come into force at the end of 2009. It also means that companies representing more than 40 per cent of face-to-face sales in the single premium unsecured personal loan PPI market will review sales and redress those consumers identified as mis-sold.

£60m Mortgage PPI refund due to UK consumers | PPI Claim

Consumers will receive refunds totalling £60m under plans to help borrowers adversely affected by mortgage payment protection insurance (MPPI), PPI Claim.

The refund will be made as part of a package of measures for consumers agreed between the Financial Services Authority and MPPI providers, after concerns were raised about premium increases and reductions what was covered in the policies.

The FSA’s concerns centred on the terms permitting these changes and how clearly they were disclosed to customers. After talks between MPPI providers, trade bodies and the FSA, the industry has agreed to proactively refund increases in premiums, and reverse any reductions in cover, for customers who have experienced these changes to their policy in 2009.

Are you entitled to make a PPI cliam? Take the 60 second test >

Clear Your Credit Card Debt

Free Yourself of Credit Card Debt

In the current times of economic crisis, credit card debt has become widespread. If you are paying just the minimum monthly dues on your credit cards it is perhaps a futile attempt to get rid of the debt. In reality, this approach of clearing your credit card debt may take years as you are probably only paying off the interest portion of the credit, judging by the high interest rates that most credit card companies charge.

Now a solution presents in the form of making credit card claims to clear your credit card debt. So how can this happen? Well, most credit card users are unaware of one basic fact about lending companies, which is that in all probability your credit cards company cannot enforce the loan or credit agreement because of legal hassles. In fact, this is slowly gaining recognition, and many users are becoming aware that clearing their credit card debt is not so hard after all.

So, now you know that clearing the huge credit card debt is not so complicated, here is how you approach the problem. The first step is to get in touch with a mediator to approach the lender with the request to make a claim. This is best done by hiring a professional solicitor or company that specialises in making credit debt claims. This is because the right way to approach the lender is crucial to ensure that your loan agreements are unenforceable thus contributing to the success of your claim.

The next step is to identify the actual loans and credit debt that you wish to make a claim against. This can include your credit cards, loans, financial agreements. Once you have listed out your individual claims, you will need to provide the account and credit cards details to the company your hired to take care of the claims. The final claim will depend on the actual credit loan amount due, and it is best to let the same company handle all your credit card claims if you hold multiple accounts. The company then handles the necessary paperwork to arrange an audit at the lender location that will analyse any breaches on the lender’s part which then qualify you to a claim. Once the grounds for dispute are ascertained it is only a matter of time before the solicitor helps you to clear your credit card dues so you really are debt free!

Take the 60 second test at www.CreditIssuesUK.co.uk and see if you qualify to wipe out unenforceable credit card debts

1.5m UK consumers complain about finance providers | Payment Protection Insurance

The number of consumers complaining to financial providers about the level of service received has increased by two per cent to 1.51m since 2008.

Complaints about general insurance and pure protection topped the table with an increase of 19 per cent to 334,443 over six months. This is an overall increase of 72 per cent since the first half results reported in 2006 and is likely to reflect the rocketing numbers of complaints about payment protection insurance on loans, as well as payment protection insurance on credit cards and mortgages.

Start your Payment Protection Insurance Claim »

 Complaints about mortgage and loan arrears handling increased 41 per cent to 39,181 and complaints about misleading advice increased 19 per cent to 207,967.

Meanwhile complaints about the time providers took to deal with complaints fell by 23 per cent to 117,774. The proportion of complaints which took providers more than eight weeks to deal with dealt with increased from 10 per cent to 11 per cent. City watchdog the Financial Services Authority (FSA) said this was largely attributable to complaints to banks and general insurance intermediaries.

The proportion of complaints upheld by FSA regulated firms fell from 40 per cent to 38 per cent. This was largely attributable to a fall in the number of complaints upheld by banks, said the watchdog.

Firms are required to report to the FSA every six months on the number of complaints they receive and how they handle them.

Start your Payment Protection Insurance Claim »

GMAC fined £2.8m for ‘mistreating’ mortgage customers

FSA orders sub-prime lender GMAC-RFC to pay £7.7m in compensation for mistreating customers who fell into arrears

Sub-prime mortgage lender GMAC-RFC has been fined £2.8m for mistreating mortgage customers who fell into arrears and ordered to pay them up to £7.7m in compensation.

The Financial Services Authority (FSA) has issued one of its biggest ever fines to the US-owned company for its treatment of customers who had fallen behind on mortgage repayments or were going through repossession.

Unenforceable Credit Agreements. Are your Credit Agreements legally compliant?

Are you paying back much more than you owe?

A credit agreement is an agreement where credit has been given to you. It includes credit cards, personal loans, secured loans, store cards and vehicle finance.

Did you know?

The Consumer Credit Act 1974 was introduced to protect consumers from banks and lending institutions. It sets out guidelines that must be followed by banks when providing documentation for loans and credit agreements.

You can challenge a credit agreement by asking the lender to provide a true copy of the credit agreement. Once you have this, the agreement can be examined to decide whether or not there have been any breach of the law. This could entitle you to compensation. In some cases the creditor may be unable to provide a copy of the agreement and if this is the case you would not have to repay the money due on your loan.

Start your Unenforceable Credit Agreement Claim »

There are lots of ways in which lenders may have breached the law. Below are some examples:

Errors when calculating interest and incorrect APR rates

The law says that the agreement must contain a term which sets out the rate of interest that is being applied under the agreement and that the APR rate accords with the APR that has been calculated. If this has not been set out correctly, you have an entitlement to seek the write-off of the entire outstanding balance owing under your unenforceable credit agreement.

Failure to provide relevant documentation

If you request a copy of the executed agreement and the lender fails to provide a copy the lender cannot enforce the agreement until such time as a copy of the executed agreement has been provided to you. The lender commits an offence if the default continues for more than a month. Where the lender has lost the agreement the terms of the Consumer Credit Act have been breached. An application can be made to the court asking that the lender writes off the agreement.

Failure to disclose commissions and fees

Where a lender pays commission to a broker or other financial introducer the sums paid to the introducer should be disclosed on the loan agreement under the heading total charges for the credit. If the lender has failed to disclose the broker’s commission as part of the total charge to you for the credit then the agreement may be unenforceable.

What does is cost?

Specialist Claims management Companies can help you to check your Credit Agreements and see if there has been any breach in the law. Their claims experts have a great deal of success with Unenforceable Credit Agreements, prices start from £300 to review an unlimited number of credit agreements (make sure you choose a firm registered with the Ministry of Justice!).

 

Start your Unenforceable Credit Agreement Claim »

 

Possibly related posts:

• BBC Panorama write off debt | Loophole clears couple’s debts | Write off illegal unfair loans | Consumer Credit Act 1974
• Unenforceable Credit Card Agreements | Advice | Write off Debt Under the Consumer Credit Act 1974
• Clear your Credit Cards & Loans legally due to flawed Credit Agreements

 

 

 

Finance Mis-Selling Under The Consumer Credit Acts & PPI/PPP/ASU Insurances

Do you have a Loan with a lender which was signed before 6th April 2007 and which was for £25,000 or less?

If so it may be wholly unenforceable against you !!

The topic of finance mis-selling by lenders (including the high street banks) is certainly a very hot topic on consumer websites and consumer media programmes.

It is estimated that there are some 50 million loan agreements in existence which are unenforceable either because there are basic defects in the documentation or because the way in which the PPI/PPP/ASU insurance policies were sold impacted on those agreements making them unenforceable.

There are, essentially, two sorts of unenforceability (at least prior to April 2007 when the Consumer Credit Act 2006 took effect) and these can be conveniently referred to as “irredeemably” unenforceable agreements and “discretionally” unenforceable agreements.

The Technical Stuff

Section 65(1) of the Consumer Credit Act 1974, states that regulated agreements are enforceable only by order of the Court if they are improperly executed. By sections 61(1)(a) and 127(3) if they are improperly executed they are wholly unenforceable if the agreement does not contain all the terms prescribed by law and in the prescribed form. A breach of Section 65 creates “discretionally” unenforceable agreements and a breach of sections 61 and 127 create “irredeemably” unenforceable agreements. In the latter case the Court has no discretion whatsoever other than to declare the agreement unenforceable. The authority for this statement is both the Consumer Credit Act 1974 itself and the case of Wilson v First Counties both in the Court of Appeal ([2001] EWCACIV633) and in the House of Lords ([2003] UKHL40).

But this is for the Lawyers to get to grips with!

“Traffic Lights”

It may be convenient to consider such cases using a “traffic lights” approach. Some case will be “reds” others “ambers” and some “greens”.

A “red” is a loan agreement which is “irredeemably unenforceable” (ie the Court has no jurisdiction whatsoever to enforce such an agreement, even if they really want to or feel they ought to). This occurs where the breaches are breaches of what is described in the Act as “Prescribed Terms”.

An “Amber” is a loan agreement which contains breaches of the 1974 Act but the Court has a discretion as to whether to enforce or not (and on appropriate terms). This occurs where the breaches of a type known as “Other Terms”.

A “green” is a loan agreement which contains no breaches.

De Minimis (ie. tiny amounts)

It may come as something of a surprise to discover that even if a Prescribed Term is wrong by even a pound (or less) that the Court still may not enforce the Agreement. This point is made in the Wilson v First County case.

Wilson v First County

The Wilson case is interesting in that it involved a loan of £5,000 from moneylenders who charged Mrs Wilson a fee of £250 for putting the loan together. Mrs Wilson did not have the money and therefore it was added to the loan. By virtue of regulation 4 of the Consumer Credit (Total Charge for Credit) Regulations 1980, the £250 should not have been added to the amount of credit (and therefore should not have had interest charged on it) and by so doing the agreement was rendered irredeemably unenforceable. That meant she got her car back, did not have to make any further monthly payments and no longer had to pay back the remainder of the £5000 borrowed !

Human Rights

The case went to the House of Lords on a Declaration of Incompatibility by the Court of Appeal That Court felt that the effect of such a Judgment was that Mrs Wilson could get her car back (securities taken on irredeemable loan agreements must be returned) and she would have to pay no further sums to the money lenders. This seemed too much of a windfall to the Court of Appeal. In common parlance: a “double whammy”! Interestingly neither Mrs Wilson nor First Counties appeared in the Lords.

The House of Lords, in essence, said that the purpose of the Act was to protect the unsophisticated borrower against the sophisticated lender and all the lender had to do to make his agreement enforceable was to comply with the requirements of the Act. If he failed to comply then it was entirely right that he suffered in the way provided by the Act. The House of Lords effectively said that there was no human rights point at issue.

What is the trigger for a claim?

Most claims come via Case Management Companies to solicitors because the prospective client believes he may have been mis-sold a PP/PPI/ASU policy. Oddly, even if this is the case, this is not, of itself, likely to be the trigger for a claim through the Courts. Firstly, there has, obviously to be a “cause of action” (that is “the legal hook” on which the claim is based). This may be “misrepresentation” or “negligence” etc but there are many cases when the client was not even aware that such an insurance policy had been sold to him and it is very difficult, in those circumstances, to allege misrepresentation or negligence or the like. The procedure for a claim through the Financial Ombudsman is relatively straightforward and in cases where such a claim is possible, this would seem to be the preferable route. There are however many cases where the Financial Ombudsman service is not able to help. For example, if the lender, at the time of the loan, was not regulated by the Financial Ombudsman then the Ombudsman has no jurisdiction. Since 2005 the Ombudsman scheme became compulsory for all Lenders.

From the perspective of the Loan Agreement, however, the Court’s jurisdiction is likely to be invoked because the lender who has added the premium for this policy to the amount of loan and treated this premium as “credit” will risk having made the loan agreement irredeemably unenforceable and therefore it has become a “legal” dispute as opposed to merely a “mis-selling” issue.

An example situation

Take a loan of say £10,000. It is quite likely that the lender will have sold to the borrower a PPI/PPP/ASU insurance policy and the premium can easily be as much as £4,000 or more. The premium is, invariably, a “single premium”, paid upfront and almost invariably added to the amount of the loan. It is difficult to justify such insurance policies in any circumstance whatsoever and the only reason that they are sold is because the commissions on such policies are always surprisingly high (and in some cases are as much as 80% of the premium!). There may be circumstances in which a PPP/PPI/ASU policy may be of benefit to the customer but, almost certainly, that customer ought to have bought a “monthly paid” policy. On the example used above the premium for such a policy would be likely to be in the order of £60 per annum. There are many further downsides to the single premium policy, for example, they are frequently sold to people who could never have made any claim on those policies (how can you have an unemployment insurance policy for someone who is self-employed?). Similarly those polices frequently will not pay out if at the time that they came into existence the insured was say under 18, not working, had an illness or was over 65. Yet huge numbers of such policies have been sold by lenders to such persons. It is hard to avoid the thought that these single premium policies are almost fraudulent and are on an industrial scale. (The “Breakfast” program on BBC1 said recently that of all the profits made by Banks that 10% came from the sale of these policies).

Citizen Advice Bureau

The Citizen Advice Bureau has found that PPI is overpriced, difficult to claim on and often sold to the wrong people. They say that it adds between 13% and 56% to the cost of the loan and that only 6% of people ever claim on a PPI and 85% of those claims are then rejected (ie. less than 1% actually successfully claim). A large number of lenders have already been fined large sums of money by the Financial Ombudsman (eg a division of HSBC was fined £1 million and the Alliance & Leicester more than £7 million in 2008). It seems likely that the sale of further such policies will be outlawed by the FSA in due course.

The 2006 Act

For completeness it should be remembered that the 2006 Act which affects loan agreements made after April 2007 does away with “irredeemably” unenforceable agreements and now all agreement are only “discretionary” unenforceable if there are breaches. ie we now only have “Ambers” and “Greens” with effect from 6th April 2007.

PS. Similar law applies to credit cards too !!

Do you have an unenforceable credit card or loan, take the 2 minute test and find out instantly.

MBNA BANK IN DOCK OVER AN £8,000 CREDIT CARD BILL

Dodgy sales practices on deals for plastic can leave lenders at risk

A COURT has wiped out an £8,000 credit card bill because of mistakes made by the issuing bank when it set up the deal.

Campaigners say the case could open the way for thousands of other borrowers to have debts cancelled, due to errors or dodgy sales practices employed by lenders.

The main grounds on which Judge Smart at Newcastle County Court said Lynne Thorius’s credit card debt was unrecoverable was because lender MBNA could not provide a copy of the original signed loan agreement, which is a requirement under the Consumer Credit Act.

The judge also said that because Ms Thorius was mis-sold payment protection insurance (PPI), which added thousands of pounds to the overall debt, she should have her slate wiped clean.

The court pointed out that the firm had earned commission for the optional insurance policy, yet not disclosed it at the outset.

This type of insurance is sold to cover loan repayments if the borrower becomes unable to work through illness or unemployment. Complaints handling firms say this case would “open the floodgates for millions of consumers”.

Do you have an unenforceable credit card or loan agreement? Visit www.CreditIssuesUK.co.uk to find out if you qualify.

What Happens When You Default On A Loan?

Ever wonder what happens when you default on a loan?

Does the bank suffer a huge amount when this happens? Well, banks are set up so that money may be created from virtually nothing. So do we expect banks to suffer when loans go bad and creditors – as sometimes happens in life – become unable to pay their installments? No.

Write Off Credit Card Debt: Can you Do It Yourself?

It is quite possible for you to go through this whole procedure and write off credit card debt by yourself. There is nothing to stop you.

However, the implications for legally withholding payment of a debt in the event of no credit agreement being found are mixed. The creditor may register defaults (despite knowing that they are giving false information) and this will involve court hearings to get these removed which could be long and protracted.

If you handled this yourself (which you could by using publicly available paperwork in order to write off credit card debt) you would then need to know how to prepare your case for such court hearings, and how to handle any subsequent counterclaims by the creditors. Then there is always the danger of massive legal fees should there be delays, etc. This is why it is better to use a solicitor experienced in this specific field.

Much publicity was given recently to the man who decided to write off his credit card debt and take on his creditors himself. He succeeded, and quashed £100,000 worth of debt, only to be handed a £100,000 legal bill.

By using a qualified legal team there should be no need to attend court hearings, and you would have the assurance that all matters were being handled properly.

The author invites readers to visit www.CreditIssuesUK.co.uk and take the two minute test to see if you can write off credit card debt. Do you qualify?

Write Off Credit Card Debt: How does it work?

The Consumer Credit Act of 1974 allows borrowers to challenge unfair credit agreements. Credit Agreements up to £25,000 and issued before 6th April 2007 must comply with the terms of the Act.

Most UK banks and lenders have not followed their legal obligations under the Act over the years. This means that your credit agreements may be legally unenforceable. Recently, a high percentage of those agreements that have been challenged have been found to be unfair and unenforceable. The result is that you can write off credit card debt as it cannot be collected.

Solicitors manage every case at every stage in order to write off credit card debt. They take details of your debts and their specialist legal team challenge the agreements with the lenders. They obtain documentation on your behalf and then verify the legality of the contract. Their legal team will then, via specific correspondence, prove that your agreement is not valid. As it is unenforceable, they will require the card company to write off the debt. In any event you do not have to pay anything further as the agreement would be unenforceable.

The author invites readers to visit www.CreditIssuesUK.co.uk and take the two minute test. Do you qualify?

Write Off Credit Card Balances and Loans Taken Out Before April 6 2007

By now a lot of people have discovered that they can quite legally write off their credit card debt (or most loan agreements) if it dates prior to 6th April 2007 and does not contain certain details which are now mandatory. Unenforceable credit card agreements exist if these agreements lack such details, known as the ‘prescribed terms’.

Specialist Claims Management Companies will check your original loan or credit card agreement. If certain clauses in the contract do not comply with the provisions of the Consumer Credit Act 1974 and ancillary regulations then the debt will be deemed to be unenforceable. Their legal team will also ask the lender to wipe the debt from your credit record.

This applies to any of the following types of credit agreement (not just credit cards):

• Unsecured Loans
• Credit Cards
• Store Cards

Unenforceable Credit Card Agreements: Minimum criteria:

1. You must intend to write off any UK credit card debt or UK loan debt
2. Resident of England, Wales, Scotland or Northern Ireland
3. Have unsecured debts of over £2,000
4. Have at least one credit card or loan
5. The Credit Card or loan taken out before 6th April 2007

If you qualify in terms of all the above, and you would like to check if you can write off your credit card debt and/or other debts, then apply in confidence by taking the 2 minutue test at www.CreditIssuesUK.co.uk

£19 000 written off MBNA credit cards

How would you like to walk away from over £19 000 of credit card debt? Well that is the news that one Credit Issues client woke up to this morning.

An application was received at the Credit Issues office from a client with over £24 600 on 3 separate credit cards, with all cards being with the same bank, MBNA.

Following the detailed process that the team at Credit Issues employ and a careful examination of the credit agreements negotiations with the lender commenced. Credit Issues employed a highly skilled team of negotiators who primary objective is to secure the best possible outcome for the client, and in this case an outcome that has saved them over £19 000.

The original balance of the 3 cards was £24 614 and the final settlement after the negotiations had taken place, just £5000.

Credit Issues strategy of taking full ownership of the case in-house is one that delivers outstanding results for clients.

DEBT CHIEF CRITICISES GREEDY CREDIT CARD COMPANIES

CEO calls for responsible consumer lending as survey shows 25% increase in average credit card debt; BoE base rate 0.5% but APR’s up to 29.99%

In a worrying turn of events, the average person’s debt to credit cards, store cards or bank loans in the UK has risen to £6,400, reveals a survey released today by YouGov for Guardian Group Financial. (Figure excludes first mortgages)

CEO of Guardian Group Financial, Gary Forrest, said: “The shocking increase in average levels of personal debt is already taking its toll – over half of adults in the UK with these debts report being actively worried; some are losing sleep. And only 23% have told their partner about their debts! We call on credit companies to be much more responsible lenders. Putting up interest rates is definitely not the way to go about it!”

“Our survey shows another shocking trend”, adds Forrest. “The third and fifth largest areas where people are incurring debt on their credit cards are food and utilities, respectively. We regard this as a warning sign. Since April the Bank of England base rate has stayed at 0.5% and in that same period, average credit card rates have increased disproportionately – some by as much as 10% over the last six months. Given that one person is made bankrupt or insolvent every 4.35minutes, (Credit Action Today figure) and that currently a UK property is repossessed every 10minutes (CML figure), consumers increasingly need help to face up to and manage their debt problems and regain control over their lives – not to receive yet more pressure from the credit companies. This dangerous trend has to stop.”

Guardian Group Financial is a debt solutions company, offering a free counselling service to people worried about how to handle their debt situation. They also offer free initial advice to clients wishing to settle their debts in a manageable and realistic way. The company is leading the way to forging a Code of Conduct for the sector, in lieu of legislation for which they have lobbied Government, to assist consumers in finding reputable debt solution companies.

GGF Debt Counselling Free Helpline is 0800 622 6824

Guardian Group Financial (GGF) specialises in delivering credit management solutions. The debt management programme serves as a gateway for people to start prioritising their debts and to regain control. It allows them to pay their household bills first (mortgage, gas, electricity, council tax etc…) then offer a reduced payment to their unsecured creditors (personal loans, credit cards, HP agreements etc…).

The Guardian Group Financial management team is headed by ex-High Street Home Loans director Gary Forrest and senior manager Allan Starling bringing their market experience and expertise to the debt management industry. They lead key personnel from the lending arena, the legal profession and the debt management sector.

The arrears helpline is free to all consumers who may have a query or require assistance in controlling their financial situation. The helpline is aimed at treating those with immediate financial issues and as an advice vehicle for those treading a financial tightrope. Guardian is in a position to offer callers a full debt management programme, if required, with a highly competitive pricing structure to help people with a short term solution to long term problem.

Credit Issues

Credit Issues operates as part of GGF. Key changes to the Consumer Credit Act 1974 means that some credit cards and unsecured loans issued before 6th April 2007 could be unenforceable. Unfortunately some lenders/institutions may have failed to have internal systems robust enough to ensure adherence to the requirements of the Act in relation to consumer agreements.

Recent case law and amendments to the Act means that agreements can be challenged on the basis of their non compliance with the strict requirements of the Act which was designed to protect consumers. For example the aim of the Act was to make sure consumers understood what rights they have and what redress was available if dissatisfied.

Irrespective of whom the credit card or unsecured loan provider is, so long as the balance is over £2,000 Credit Issues could help. Not only are we seeking to clear or reduce the balance of the credit card or unsecured loan, we will also seek to reclaim any mis-sold payment protection insurance or accident sickness cover together with interest.

Recovering Extortionate Charges – MBNA | Credit Issues Ltd

Our successes here at Credit Issues in challenging credit card and personal loan balances by requesting “true copies” of the original credit agreements has proved a powerful and effective approach.

Several rulings by various District Judges have validated that strategy and in most cases so far, those “true copies” have not been made available. So with no documentation forthcoming, a positive outcome for Credit Issues’ clients challenging the entire balance (whether they are being pursued by the original lending institution or the debt has been assigned to a debt collection agency) is highly likely.

So far, we’ve successfully challenged in excess of £1.5 million for our clients and we’re on track to reach a target of £10 million worth of personal debt successfully challenged.

Even if those “true copies” actually do arrive, that doesn’t mean that we give up! Credit Issues recently negotiated a reduction of over 75% to a major Visa credit card balance after identifying incorrectly stated APR on behalf of a client in just those circumstances. And if it goes beyond that, and you approach the steps of the court for the hearing accompanied by your Credit Issues appointed legal team, even then all is not lost. The lender (Bank of Scotland) caved in on the court steps before the hearing itself and as a consequence the judge approved the deal done that enabled the client to walk away from the entire debt and as well as having his court costs paid.

However, in addition to achieving balance reductions and clearance, Credit Issues also look to get back the sometimes excessive charges that have been applied to client accounts. That’s especially been the case with MBNA, the credit card provider that is ultimately owned by Bank of America. Earlier in the year MBNA categorically stated that they would not acknowledge or deal with companies such as Credit Issues, however only a few short months later MBNA offered to negotiate on every case on Credit issues’ books!

That change of heart by MBNA following lengthy discussions with the Credit Issues team has proved very profitable for our clients and the extent of the capitulation by MBNA has surprised even us! In one case, we sought to recover £160 in extortionate charges – MBNA refunded all charges to the sum of £632.08. In another we claimed £75 in extortionate charges – MBNA refunded all £477.23 worth of charges. Perhaps the most impressive was our claim to recover £1,035 in extortionate charges on behalf of a client and to his delight MBNA refunded all the charges applied amounting to a grand total of £3,069.44.

Do you have an unenforceable credit agreement? Visit www.CreditIssuesUK.co.uk to find out if you qualify.

Lenders Scare Tactics and Disinformation – CCA 1974

An increasing number of consumers are realising that you can challenge legally unenforceable debts. Credit Issues has done just that with £1.5 million of consumer debt this year alone.

They’ve proved successfully that a contract which breaches the terms and requirements of Consumer Credit Act 1974 is not enforceable by the lender or the Court. People who may have been capable of supporting the credit card or loan commitments they made in the past may now face difficulties because of redundancy or a reduction in household income. Circumstances for which they are entirely blameless! So more individuals are exploring this legitimate means of challenging and reducing their total debt.

Lenders are naturally concerned about this rising tide of consumer awareness of just how the Consumer Credit Act 1974 can be used to their benefit and numerous stories, articles and spoilers have begun appearing in the press suggesting that the approach is untried, unproven and not worth pursuing. Many suggest that challenging debt in this way is similar to the position on reclaiming bank charges. Following a spate of banks refunding customer’s charges, thanks largely to a campaign by Martin Lewis, OFT intervention has merely put everything on hold for the time being.

Using the Consumer Credit Act 1974 section 78(1) and the mechanism of requesting “true copies” of the original credit agreement is in no way similar to the position on bank charges. The issue to be decided on bank charges is not necessarily their validity, but rather whether the amount charged is ‘fair and reasonable’. That requires a subjective judgement based on an opinion of what is “fair and reasonable”.

In the case of challenging personal loan or credit card and store card debt using the “true copy” approach, an identified breach of the terms and requirements of the Consumer Credit Act 1974 is a matter of objective and legal fact. No opinion or subjective judgement is required. The agreement is either in breach of the Act (in which case it is unenforceable) or it isn’t. And if it isn’t, Credit issues will advise you of that fact and won’t waste your time and money by pursuing a case that has no chance of achieving the result you desire.

So don’t believe the lender’s scare stories and propaganda. The requesting “true copies” approach works because the lenders know that they cannot argue against the fact that they are in default when they do not provide a copy of the agreement. With no documentation forthcoming, a positive outcome for Credit Issues’ clients challenging the entire balance (whether they are being pursued by the original lender or a debt collection agency) is highly likely. If the documentation requested does arrive, it often turns out to be just a copy of an original application form. This in itself does not constitute a credit agreement, it simply confirms that you applied for such a credit agreement. So the situation is entirely as above and again a successful outcome is highly likely.

Even if the requested “true copy” of the agreement actually does turn up, that doesn’t mean that the chances of challenging the debt have gone. Credit Issues negotiated a reduction of over 75% to a major Visa credit card balance when the client’s agreement was found to have incorrectly stated the APR. Indeed in a very recent case the lender caved in on the steps of the court just before a scheduled hearing and the client walked away from the entire debt and any negative information on his credit file was to be removed. The judge also instructed that the claimant to pay the client’s costs in the action, so his court costs were paid as well!

Bank Of Scotland Write Off Debt. Why it Pays to Get the Experts!

With all the confusing adverts in many newspapers, on the radio and on the Internet, deciding which Claims Management Company to trust when it comes to challenging credit card and personal loan debt may not seem an easy one.

 Many claims management businesses operate what we here at Credit Issues Ltd term the “Packaging Model”, whereby they take your application and pass it on (package it up) to a solicitor who is prepared to ‘buy’ the case.

That’s not that unusual as solicitors often buy cases to increase their work load, however, bear in mind that those solicitors may be working on several types of cases including matrimonial, conveyancing or employment, meaning the time they can dedicate to this specific area of law and their experience of it may be very limited.

Credit Issues has a full para-legal team in-house, specialising in reviewing your credit agreements and advising on the best course of action and access to proven expert solicitors and barristers if required. Our Negotiations Team spend their days talking with your card and loan lenders and perhaps more importantly, we are prepared to take it right to the wire on your behalf!

Our successes in challenging credit card and personal loan balances through the mechanism of requesting “true copies” of the original credit agreements has proved a powerful and effective approach. Several rulings by various District Judges have validated that strategy and in most cases so far, those “true copies” have not been made available. So with no documentation forthcoming, a positive outcome for Credit Issues’ clients challenging the entire balance (whether they are being pursued by the original lending institution or the debt has been assigned to a debt collection agency) is highly likely.

Even if that documentation actually does arrive, that doesn’t mean that we give up! Credit Issues recently negotiated a reduction of over 75% to a major Visa credit card balance on behalf of a client in just those circumstances. But even if it gets beyond that, and you approach the steps of the court for the hearing accompanied by your Credit Issues appointed legal team, don’t despair!

That’s just what happened recently to Mr. M. who was the defendant in a claim brought by the Bank of Scotland in the Leeds County Court. The lender caved in on the court steps before the hearing itself and as a consequence the judge approved the deal done, that the claimant (Bank of Scotland) would not enforce the credit agreement and agreed to discontinue the claim. So, even at that eleventh hour, Mr. M. walked away from the entire debt and any negative information on his credit file was to be removed. The judge also instructed that the claimant was to pay the defendant’s costs in the action, so his court costs were paid as well!

Personal Debt In Scotland Rises

Recent data indicates that actual personal insolvencies in Scotland rose by a dramatic 137% in stark contrast to figures published on Protected Trust Deeds (a version of an IVA north of the border) which suggest a modest 1.6% increase quarter on quarter, which of course reflects only those who have approached a licenced insolvency practitioner to establish such an arrangement. This may seem counter intuitive when set against other data that suggests Scottish homeowners have emerged relatively unscathed from the housing price slump this time round with just 1% of owner–occupiers in negative equity.

However, that may help explain the relatively low ratio of those successfully going through the PTD route. People whose finances were already stretched found themselves in an untenable position made worse by redundancy and a reduction in the household income. However they still retain sufficient equity in their property to make a PTD acceptance unlikely as creditors will be inclined to deny any “IVA-like” suggestion and propose that the debts are paid in full when the equity is greater that the debt owed.

More immediate and practical action is available to reduce the levels of unsecured debt at least is possible on a UK-wide basis through Credit Issues. Key changes to the Consumer Credit Act 1974 that apply nationwide means that the total balance on some credit cards and unsecured loans issued before 6th April 2007 could be cleared completely. Credit Issues’ central strategy and approach of challenging enforceability through scrutiny of “true copies” of agreements has been proven. Several recent, successful, English court cases against well-known lenders have concluded with District Judges consistently ruling that the debts were indeed disputed on substantial grounds and that the agreements were indeed unenforceable. There is no reason why this approach should not be equally successful in Scottish Sherriff Courts.

Credit issues team successfully removed one client’s liability to credit card debt, despite it being assigned by a major lender to a debt collection agency, and he was able to clear the entire balance of £16,029.50. Irrespective of who the credit card or unsecured loan provider is (even if that debt has been “sold” to a debt collection company), so long as the balance is over £2,000 Credit Issues could help challenge or reduce the balance of your credit card or unsecured loan and also reclaim any mis-sold payment protection insurance or accident sickness cover together with interest. That at least will take the pressure off and reduce the gross amount of debt outstanding.

A Proven Means of Reducing Debt or Just a Scam?

Consumers are being urged to continue the battle against lenders collecting legally unenforceable debts by a growing number of companies and recent reports suggest that literally hundreds of thousands of potential court cases could be in the system.

Credit Issues alone has successfully challenged in excess of £1.5 million of consumer debt and increasing demand for its services has resulted in the firm aiming to challenge £10 million of consumer debt over the course of the year.

But isn’t increasing consumer awareness of lender failings just a scam or taking advantage of a loophole though? Many people seem to take the entirely moral standpoint of being unwilling to entertain an attempt to challenge any unsecured personal loan or credit card debt on the basis that they “knew, or should have known, what they were getting into”. This course seems to be “running away” from a debt obligation and rewarding lack of prudence, planning and foresight. But the same accusation could be levelled at pretty well every lender, all the financial institutions, major clearing banks, MPs and even Her Majesty’s Government at the moment! The issue may not be whether it’s a defensible ethical course, but rather whether sufficient preparation and professional assessment has been undertaken by the credit management company to ensure that they are not wasting your or the court’s time by taking on a case that has no real chance of success just to make a fast buck!

Lenders are making some £9 billion a year out of interest and fees from what very well may have been irresponsible lending, but if the contract between two parties breaches prescribed terms under current UK legislation (Consumer Credit Act 1974) it is not enforceable by the lender or the Court. People whose finances were capable of supporting the commitments they made only a few months ago may now find themselves in an untenable position thanks to redundancy or a reduction in household income. Circumstances for which they are entirely blameless, so why not look at any legitimate means of challenging and reducing your total debt?

The lender cannot force you to pay the debt back and they do not have the right to sell the debt on to a debt collector or any other third party and provided you select specialist advice from an advisor or company registered with the UK Ministry of Justice, you can at least challenge a significant proportion of your unsecured debt commitments.

Credit Issues is just such and approved organisation and has successfully pursued almost £ 1.5 million worth of debt so far this year using the central strategy of challenging enforceability through scrutiny of “true copies” of agreements.

Several recent, successful, English court cases against well-known lenders have concluded with District Judges consistently ruling that the debts were indeed disputed on substantial grounds and that the agreements were indeed unenforceable. Most recently, the Credit Issues team successfully removed one client’s liability to credit card debt, despite it being assigned by a major lender to a debt collection agency, and he was able to clear the entire balance of £16,029.50. Irrespective of who the credit card or unsecured loan provider is (even if that debt has been “sold” to a debt collection company), so long as the balance is over £2,000 Credit Issues could help challenge or reduce the balance of your credit card or unsecured loan and also reclaim any mis-sold payment protection insurance or accident sickness cover together with interest.

That’s not a scam or a get-out. It’s a legitimate and entirely defensible avenue open to hard pressed families, who through no fault of their own, face severe debt worries. The only caveat consumers should bear in mind is the importance of choosing a firm with a full on-site specialist legal team and proven published details of successful cases and an impeccable professional reputation.

Debt Consolidation Loans a Good idea?

When you are looking for an easy way to both minimise and reduce the number of payments going out each month you might consider the option of a debt consolidation loan.

Many companies claim that debt consolidation can give you a new start because it permits you to consolidate all your loans into one monthly payment, usually secured against your property. If you’re fortunate enough to be a homeowner, this route can work, although some consolidation loans are available to tenants.

It’s certainly often the case that the combined interest rates on all the individual loans or credit agreements you have will usually be higher than the rate of interest on a single debt consolidation loan. Paying off all of the debt you have been juggling for years with a debt consolidation loan while maintaining payments against this one large loan may also help to improve your credit score.

Choosing a debt consolidation loan does have certain drawbacks though. A consolidation loan with a relatively low interest rate will be easier to get if you have previously paid your debts on time and in full and do not have any substantial arrears on payments of mortgage, personal loans or any credit cards. If you are in the position of juggling your finances to accommodate debt due to redundancy or sudden loss of income you may well have missed several payments or be in arrears with some lenders and your credit score will reflect this. Consolidation loans at an attractive enough rate of interest may prove difficulty to get.

If you are in negative equity, there may not be sufficient capital “locked up” in your home to get the size and amount of consolidation loan you need to cover all your outstanding debt. The debt consolidation loan will have to be sufficient to redeem all your existing loans and agreements, so you will be paying the full the amounts outstanding plus any interest and possible early redemption charges as well as PPI sums that may be added to the total. The consolidation loan itself will involve you in new rates and charges going forward.

If your debt is largely in credit cards or unsecured personal loans, then consider challenging and reducing that debt entirely. Key changes to the Consumer Credit Act 1974 means that the entire outstanding balance on some credit cards and unsecured loans issued before 6th April 2007 could be challenged through a now validated legal process. The ability to challenge a regulated agreement on the basis of its non compliance within the strict requirements of the Act has proven to be a winning argument for Credit issues, with several successful court cases already in the bag.

No matter whom the credit card or unsecured loan provider is, so long as the balance you owe is over £2,000 Credit Issues can successfully challenge the debt and investigate possible reimbursement for any mis-sold Payment Protection Insurance or accident and sickness cover together with interest.

So, while a consolidation loan may be an option to consider, before you commit to paying every penny of interest and charges on your debt and get involved with more charges, fees and interest payments on a continuing basis, find out if you could mitigate the debt you’ve got in the first place and reduce your outgoings to the point where you don’t need yet another loan at all.

The Recession By Numbers

• £84m is the interest the Government has to pay each day on the UK’s net national debt of £743.6bn. This is projected to rise to £118m a day (£43bn) in financial year 2010 – 2011.

• Total UK personal debt at the end of March 2009 stood at £1,459 billion.

• Total consumer credit lending to individuals over the last 12 months ending March 2009 was £232 billion.

• Average household debt in the UK is £9,280 (excluding mortgages). This figure increases to £21,580 if the average is based on the number of households who have some form of unsecured loan.

• Average owed by every UK adult is £30,475 (including mortgages).

• During March 2009 Britain’s personal debt increased by £1 million every 50 minutes.

• 3,000 people made redundant every day and 1 in 33 people currently in work are expected to become unemployed in 2009.

• 1 property repossessed every 10 minutes.

• 1 person declared bankrupt every 4.5 minutes.

• 33,600 applications for credit have been turned down every day during the past six months.

• Citizens Advice Bureaux deal with 7,241 new debt problems every day.

• A recent poll conducted by the Resolution Foundation found that nearly 3 million people earning between £12,000 and £27,000 per year worry ‘all the time’ about their personal finances.

• We work the first 83 days of any given year just to earn enough money to service the interest on our debts

• Total credit card debt in March 2009 was £53 billion.

• The UK collective credit limit on credit cards is £158bn, which is an average credit card limit of £5,129 per person.

• The average interest rate on credit card lending is currently 17.6%, which is at least 17.1% above current base rate.

The number that matters: 0800 622 6824 and talk to credit issues about challenging your credit card and unsercured loan debt.

Challenging debt through Credit Issues

Credit Issues recent run of successes in challenging credit card and personal loan balances through the mechanism of requesting “true copies” of the original credit agreements has proved a powerful and effective approach.

Several rulings by various District Judges throughout the country have validated that strategy. In most of the successful cases to date, those “true copies” are simply not available and with no documentation forthcoming, a positive outcome for Credit Issues’ clients challenging the entire balance (whether they are being pursued by the original lending institution or the debt has been assigned to a debt collection agency) is highly likely.

After Credit Issues have carefully ensured your case meets the qualifying criteria, they then request “true copies” of the original agreement from your lender. But what happens if that agreement actually does turn up? Does that mean your chances of challenging the debt have gone? Not necessarily!

Credit Issues recently negotiated a reduction of over 75% to a major Visa credit card balance on behalf of a client in just those circumstances. After intense scrutiny by Credit Issues experts, the agreement was found to have incorrectly stated the APR. Following a without prejudice (off the record) offer by Credit Issues to the lender, a reduction in the balance outstanding from £12,300 to £3,000 – a saving of over £9,000 – was agreed, much to the client’s delight. The credit file will be recorded as “partial settlement” which the client is also pleased about.

So even if all seems lost, don’t give up challenging debt through Credit issues. We will only take on your case if we genuinely feel there is a good chance of success on your behalf. Unlike some other debt/claims management companies that have jumped on the bandwagon, if our experts say your case isn’t strong enough, we’ll tell you so! But such is the skill, expertise and experience of our in-house legal team that, if there is a way of successfully challenging or reducing your debt, we will find it.

How to Clear All Your Unenforceable Credit Agreements

Over the last 12 months there has been an increase in the amount of people who find themselves in debt.

This is due to a number of reasons and matters have not improved with the onset of recession here in the UK. However, in times of doom and gloom there are always companies who re-focus their attentions to try and help consumers save money in this type of market environment.

One of the recent types of financial services gathering momentum is that provided by companies who will look at your existing credit or loan agreements and see if they are valid or invalid.

Firstly, back in 1974 the UK Government, through its financial regulatory body came up with a set of conditions under which credit card and loan companies had to adhere to in terms of their practices. This was all covered by the Consumer Credit Act 1974. As part of being allowed to trade under this act the lenders had to abide by a very detailed and specific set of criteria. Simple enough you might think!

However, over recent years it’s come to light that a large number of credit card and loan providers were not being taken to court because of non-payment of their loans. In fact some consumers were also managing to get their loans completed wiped clean from the slate, meaning they were not paid, or at least only a fraction of the outstanding was payable. Loan types that are exposed to this are; secured loans, unsecured loans, hire purchase, credit cards, store cards.

Over the last 12 months more and more specialist Unenforceable Credit Agreement companies are now seeking out credit card or loan applicants who may have an agreement that does not comply with the 1974 CCA and as such is unenforceable.

Here is a list of the main terms and conditions which companies must adhere to:

• The lender no longer holds a copy of the credit/loan agreement.
• The exact amount of credit (or credit limit) hasn’t been detailed on the agreement.
• The interest rate has been incorrectly calculated.
• The credit limit has been increased on a credit card without being formally requested.
• The standard charges are not considered to be fair.
• The sale of an adverse credit product where the applicant has a clean credit history.
• A deposit has been paid and it isn’t outlined in the agreement
• No rate of APR is displayed, although some secured loans are variable rate.
• The agreement does not mention a ‘cooling off’ period.
• The agreement has not been signed.
• If the loan is secured, this must be detailed on the agreement.
• A person has been advised that they can only get a loan if they take out Payment Protection Insurance (PPI).

Credit card and loan companies must follow a straightfoward set of criteria and there is no excuse for them being so slack in ensuring they complied with the 1974 Consumer Credit Act. However, it turns out that there could be potentially 10,000’s of UK invalid credit agreements, which could in turn cost the lenders millions in lost revenue.

Would you like to know if you have an unenforceable credit agreement? Visit www.CreditIssuesUK.co.uk and take the two minute test to find out if you qualify.