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'

The Rankines had 13 credit cards

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.

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’.

Credit Issues 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. Our 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 if you really want to 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.

How to clear your debts easily and legally

Do you need to do something about your credit card and loan debt?

Are your monthly payments out of control?

Can’t see a way out of the spiral of debt?

 

If you are worried – why not have your credit card and other finance agreements audited to see if they are invalid and therefore unfair and unenforceable agreements.

Over the last five years there has been an increasing number of court cases where ordinary people have taken their lenders to court and had their credit card and loan balances written off due to them being deemed unenforceable agreements and in some cases been awarded compensation too. The most famous being Mr and Mrs Rankine who appeared on the BBC Panorama Programme recently.

It isn’t debt management, an IVA or bankruptcy. It is a new and rapidly expanding industry which examines your credit agreements taken out before April 2007 to see if they comply with the terms and conditions of the Consumer Credit Act 1974. The act was put in place to protect the consumer but the banks and lenders ignored this.

This Act states what MUST be contained in your agreement and if it does not, it is unfair and unenforceable. And you can therefore claim to wipe out the balance of your credit cards and loans.

It is a straight-forward, easy process. Your legal representative will, with your written permission, ask your lenders for copies of the credit agreement you may have signed. This will then be audited and if any non-compliance or breeches are found it will be an unenforceable contract. And you can then claim to have it written off.

Did you know that a staggering proportion of credit agreements taken out before April 2007 are unenforceable! Its true. Most of them DO NOT comply with the terms and conditions of the 1974 Consumer Credit Act. And this makes them invalid and unenforceable.

Now you can find out if your credit agreements are unenforceable by having them audited by a solicitor. This could give you freedom from debt and peace of mind.

Mis-sold investments scam similar to that of mis-sold loans

Yet another despicable banking scam hit the financial headlines today (see Money Mail) as Barclays persuaded hundreds of elderly, loyal customers to invest their life savings in a risky fund – Aviva Global.

It is one of the worst performing funds of its type and true to form, the fund’s value fell by 45% in a year, almost halving those savings.

So why did Barclays mis-sell a high risk fund to vulnerable and trusting customers by persuading them it was low risk? Simple – because bank staff were paid a commission to sell them. And why were they paid a commission? Because Barclays was being paid by Aviva to sell the fund through the bank.

Barclays have now reclassified the risk as ‘adventurous’and blamed the whole debacle on a procedural error. Interestingly it is also what the banks call a ‘procedural error’ to charge more APR on personal loans or credit cards than that stated on the original Consumer Credit Agreements. Or to sneak in the one off brokers’ fee into the total charge for credit on the Agreement – thus deftly getting illegal APR on that too.

Customers who have been missold loans are usually unaware of it until the Agreement is challenged, and in the case of Barclays and Aviva, the advisors told their customers that the funds were suitable for cautious investors and gave them no idea of the true risks. They also told them to put all their money into the one pot – another breach of banking regulations.

But will Barclays now come clean and admit to misselling? Not a bit of it. When challenged with the accusation that they were deliberately mis-selling to vulnerable and loyal customers who trusted the bank but were the last people able to afford to gamble their life savings, Barclays refuted the claim and is refusing to pay compensation to all of those who claim they were misadvised about the risks.

A spokesman for bank said that it was simply a procedural error to rate the fund as ‘balanced’ and it is now rated as ‘adventurous’.

The people who were misled into taking risky investments are rightly demanding compensation and are not getting it. But people who took out a personal loan or credit card agreement before April 2007 for over £2,000 and less than £25,000 have every legal right to challenge that agreement and if it was mis-sold it will be rendered unenforceable. You have rights. Use them

Sending unsolicited credit card cheques or increasing credit limits could make entire loan unenforceable

Have you recently received a letter through the post from your lender offering you increased credit limits or providing you with credit card cheques you never asked for?

If so, and if your original loan agreement was taken out before April 2007 you may well find that the agreement is unenforceable.

It is an increasingly common and odious practise to encourage us borrowers to spend more at this penny pinching time of recession, when we should, on the contrary be consolidating, not increasing, our debt. But where the banks are breaking the law is by not sending out a fresh credit agreement for the customer to sign agreeing to the increased limit or the cheques. This is a requirement set out in the Consumer Credit Act but as with many rules and regulations surrounding the Act, is routinely flouted by the lender.

This irresponsible lending echoes the mistakes made by banks eager to make a profit by lending to sub-prime borrowers in the boom years – a practise that is widely accepted as the cause of the Credit Crunch. Lenders are only deepening this crisis by attempting to get potentially vulnerable consumers to dig themselves into an even deeper pit of debt. Research shows that many consumers believe that since the lender has offered a new more generous credit limit without this being requested, then it must be affordable and within their means

Savvy borrowers should challenge their loan agreements through a specialist Claims Management Company as soon as they receive unsolicited credit card cheques or an increase on their credit limit.

Credit card cheques usually carry more expensive charges than credit cards and are sent to customers to use for purchases or payments. The amount is settled on their credit card bill.

Barclaycard, Capital One and MBNA were among the biggest issuers of credit card cheques at the industry’s peak in 2007 when the practice was estimated to net the banks about £650m a year. They usually invite cardholders to pay off other debts, make home improvements or even treat themselves to a holiday.

Back in 2006, the Office of Fair Trading called for unsolicited credit card cheques to be banned, but this recommendation was not acted on by the Government. Instead an option was introduced so that card customers can request not to be sent cheques. Who is going to bother to do that? Ministers want to ban firms from sending out unsolicited credit card cheques to consumers and legislation IS now to be introduced to stop card firms raising a customer’s credit limit when this has not been requested.

Have you been mis-sold a credit card or loan agreement? Take the two minute test and find out instantly if you qualify to have your unenforecable credit agreement reviewed.

Secret selling of PPI can make a Loan unenforceable

The Competition Commission recently ruled that lenders must stop selling Payment Protection Insurance (PPI) alongside loans after years of hard-selling techniques that raked in billions on insurance cover that often cannot be claimed on.

Along with reclaiming unfair bank charges, consumers are now thronging to get compensation for mis-sold loans and credit cards.

Ironically, one of the hard-selling techniques of flogging PPI to unsuspecting consumers includes making the sale of PPI a condition of the loan and failing to inform the borrower. If this is the case the loan potentially becomes unenforceable in a court of law. If the borrower did not request PPI and the Consumer Credit Agreement contains a computer generated tick in the box for PPI instead of a hand ticked box – the law presumes that the borrower was not informed of the inclusion of the insurance and the entire loan might be written off.

Barclays is trying to challenge the ban on the lucrative sale of the infamous personal protection insurance and along with all the other lenders, the bank is trying to claw back money they are losing by other equally questionable means.

Banks are looking at every way they can to make money out of lending money, and one of the most obvious ways is to raise APR rates on personal loans. They are now predicted to settle at a whopping 10% by summer.

A year ago, when base rate was 5.25%, a £7,000 loan typically cost 6.9% – a difference of only 1.65%. Now with base rate a mere 0.5%, the cheapest rates for the same-size loan average around 8.5% making an eye-watering margin of 8%.

If the banks will stop at nothing to make money out of us, we should feel able to turn around and fight them at their own game and challenge whether they have sold us an unenforceable credit card or loan.

Don’t be pushed into bankruptcy – challenge unenforceable loans and credit cards

Figures published today by the Insolvency Service show the number of personal insolvencies reached 29,774 in the first quarter of 2009 – an increase of 1.6% on the previous quarter and 19% on the same period a year ago.

The figures consisted of 10,713 Individual Voluntary Arrangements (IVAs), an increase of 12% on the corresponding quarter in 2008 and 19,062 bankruptcies, representing an increase of 24% on the corresponding quarter last year.

Bankruptcies have continued to rise sharply throughout 2008. Many people are being ‘pushed’ down the bankruptcy route as a quick and lucrative fix for unscrupulous non-regulated advisers. Individuals are saying that they have been persuaded to declare themselves bankrupt and have been charged up to £5,000 for the privilege.

Bankruptcy is an option for people who are really struggling with debt and it should not be entered into lightly. It is important to remember that there are a range of options open to people in debt – not just bankruptcy – and people should never be coerced or feel forced into a particular option. Bankruptcy is a complex process and requires careful, trained advice as it can affect someone’s assets and employment prospects as Bankruptcy Restrictions Orders (BROs) can remain in effect for 15 years.

However, there is good news and another option.

Many individuals and business owners are legally challenging unenforceable credit cards and loans taken out before April 2007. Speciailist companies can check if your credit card or loan can be legally written off due to non-compliance with the strict requirements of the Consumer Credit Act 1974.

For every ‘statistic’ there is a real person on an IVA or debt management plan that is determined to pay off what they can afford. It is encouraging to see so many individuals reviewing their credit agreements against the Consumer Credit Act and checking if they can be legally written off before persuing an IVA or debt management plan.

Banks ‘responsible for their own demise’

The Treasury Committee has released a report which blamed the failure of the banks on the institutions themselves.

It said that they were the “principal authors of their own demise” and that bankers had made “an astonishing mess of the financial system.

However, the committee’s wrath was not entirely aimed at the private banking sector. It added that the supervisory system that was designed to protect the public from systemic risk was in part to blame.

The Banking Crisis: dealing with the failure of the UK banks report claimed that the origins of the current economic situation were many and varied.

John McFall, chairman of the Committee said: “We have experienced a comprehensive failure of the banking system at all levels.”

The British Bankers’ Association came to the institutions’ rescue promptly, saying: “Banks are helping their customer to manage through in these difficult times.”

But, if banks are doing all they can to help their customers during the downturn, why is the FSA taking over all regulation of retail banking – including customer service.

Do you have an unenforceable credit card or loan agreement, which can be legally written off? Visit this site and take the test to find out instantly if you qualify www.CreditIssuesUK.co.uk

Managing Debt and Deficit

Two people we know of (let’s call them Gordon and Alistair) are unfortunate examples how ignoring mounting debt can lead to heartache and worries. Addicted to spending, they now face the future with uncertainly, not knowing who to turn to and being harassed by the young upstart neighbour David and suffering lectures from the crotchety old Vince who keeps on saying he told them so.

They admit that their accumulated debt now amounts to 12% of their total income, bigger than all their friends, and that debt burden will double in the next few years to £1.4 trillion. Know it alls and nosey parkers are saying it is unlikely to return to previous levels for a generation. They still hope for a bounce-back in their earning capacity next year, but others say there will be a further shrinkage even then, and they’ve still got to borrow £175 billion just to get through. Optimistically, they claim that they’ll get back on an even keel again in nine years time, but no one seems to believe them.

Maybe Gordon and Alistair should contact Credit Issues who can give them proven and practical advice on how to manage debt. Debt management, IVA, loan, or bankruptcy? The decision as to which solution is best for Gordon and Alistair should come down to a comparison between which solutions they qualify for and which solution would allow them to repay their debts as fast as possible with the least possible money.

In fact, if they qualify, they could even challenge some of that debt. Several rulings by various District Judges throughout the country have validated Credit Issues’ central strategy approach to debt relief by challenging enforceability through scrutiny of “true copies” of agreements. In most cases, due to inaccuracies within a lending institution’s administration procedure, those true copies are simply not available and a positive outcome for Credit Issues’ clients is highly likely. That’s the case whether the client is being pursued by the original lending institution or the debt has been assigned to a debt collection agency.

So long as the balance of debt is over £2,000.00 (£1.4 trillion should just about do it – but that won’t affect our fee charging structure) Credit Issues could help as it has already done with dozens of clients. Not only will Credit Issues seek to successfully challenge the balance of the unsecured debt, they can also investigate possible reimbursement of any mis-sold payment protection insurance. Gordon and Alistair, don’t put it off any longer. We’re waiting for your call. It’s never too late to take positive action and put debt worries behind you.

People Abandon Saving to Repay Debt

The credit crunch crisis has triggered a dramatic retreat from savings last year, as for the first time since 2000, British consumers are paying off more than they borrowed.

Last January, consumers borrowed 66 pence for every pound they saved. However, when financial turmoil struck in the summer, there was a rapid turnaround and by the last quarter of 2008, we were paying off £1.76 worth of debt for every pound saved. New savings during this period almost halved. Over the course of 2008, £38.6 billion of non-mortgage debt was paid off – more than was borrowed in 2007 and 2008 put together! But, as a nation, we saved £103 billion – almost 30% down on the savings figure for 2007.

For many people, the concept of “saving” is strange and unknown in any event! Repaying debt is the obvious priority for almost everyone at present. Surveys have shown that we are tightening our belts all round, taking steps like cancelling planned holidays, in order to reduce the debt burden. A large part of that non-mortgage or secured debt is tied up in credit cards or personal loans.

Managing those unsecured debts is a priority, especially with the employment situation worsening (and due to get even more dire as floods of school leavers enter the workplace later this year). However, many of those unsecured credit card, store card or personal loan debts may be unenforceable and could not only be reduced, but cleared entirely. Credit Issues is continuing the fight against lenders collecting legally unenforceable debts on behalf of a growing number of clients. And with some success!

So far during 2009 Credit Issues has successfully challenged over £1million worth of consumer credit card and personal loan debt with various high street names including the Co-op, Tesco, Royal Bank of Scotland, NatWest, Mint, Lombard Direct, Littlewoods, Direct Line as well as various debt collection companies.

Tools are available to consumers which mean that, if agreements do not comply with the strict requirements of the Consumer Credit Act 1974, some credit card or unsecured loans taken out prior to 6 April 2007 could be successfully challenged. So by all means look at minimising your saving ratio, but it’s worth investigating how you could minimise your unsecured debt burden initially by contacting Credit Issues today.

Credit Issues Debt Challenge Formula Proves A Winner

Credit Issues continues its recent run of success in challenging credit card and personal loan balances through the mechanism of requesting “true copies” of the original credit agreements with lenders on behalf of its clients.

Several rulings by various District Judges throughout the country have validated Credit Issues’ central strategy and approach to credit card and personal loan debt by challenging enforceability through scrutiny of “true copies” of agreements. In most cases, due to inaccuracies within a lending institution’s administration procedure, those true copies are simply not available and a positive outcome for Credit Issues’ clients is highly likely. That’s the case whether the client is being pursued by the original lending institution or the debt has been assigned to a debt collection agency.

Key changes to the Consumer Credit Act 1974 means that some credit cards and unsecured loans issued before 6th April 2007 could be totally written off through a legal process that has no impact on your credit score or rating or your ability to obtain credit in future. 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 and has confirmed that such agreements are indeed unenforceable. In the past few weeks that’s been exactly the outcome for a number of clients represented by Credit Issues’ experienced in-house legal team and specialist lawyers.

Credit Issues can help clear credit card debt

One client was able to clear £9,834.38 credit card debts with NatWest while another couple managed to challenge a £19,770.79 personal loan with the same lender. The Royal Bank of Scotland was successfully challenged over separate £7,988.32, £10,053.26 and £11,495.33 credit card balances by three clients. Two other Credit Issues clients successfully challenged separate credit card agreements with NatWest on different cards issued by the same lender – in one case £9,908.10 and £8,175.92 and in the other, totals of £8,104.53 and £3,323.96 respectively.

No matter who the credit card or unsecured loan provider is, so long as the balance is over £2,000 Credit Issues could help as it has already done with the clients mentioned above. Not only will Credit Issues seek to successfully challenge the balance of the credit card or unsecured loan, they can also investigate possible reimbursement of any mis-sold payment protection insurance or accident sickness cover together with interest.

Visit the Credit Issues website and take the two minute test and find out instantly if you qualify.

Have an Unfair Credit Card or Loan? Claim Your Agreement is Unenforceable

Challenge Unenforceable Credit Agreements

Under the Consumer Credit Act of 1974, there are specific rules that lenders must follow when making a new credit card or loan to a consumer. If these rules are not followed, the credit agreement can be deemed unenforceable. Unenforceable agreements can lead to debts being either reduced or completely cleared.

 

So how do you know if you have a bad or unfair credit card or loan that could be deemed unenforceable?

Unless you know consumer law extremely well, it is hard to go about this process on your own. However, there are two different paths that you can take which will be discussed here. It is up to you to decide which way that you want to go.

The first method that you can take to get your agreement deemed unenforceable is by doing your own leg work. The first step that you need to take when you are doing this alone is to write to each lending company that you have a credit agreement with and request a copy of all the original documents. Also, you need to enclose an additional check for £1.00. However, many professionals suggest that you do not include a check with your signature or anyone else who is on the loan, just in case the lender is unscrupulous enough to forge the documents. Not all companies will do this, but it is better to not take your chances.

The reason that you need to request a ‘true copy agreeemnt’ from a company is that many companies simply do not have these documents. This could be for many reasons. They could be stored in a large warehouse or the company’s record keeping is bad. Or, the company could have merged many times over since you signed the credit agreement and with all the moving around, these documents may never be found. Also, the documents could be old and impossible to find amid thousands or millions of others as well. This all works in your favor. To put it simply, if you take it to court and the bank or lending company can’t produce the original documents, the agreement will be deemed unenforceable.

Alternatively, if you do not want to go through the trouble of obtaining records on your own and filing court documents, you can find many services online that you can hire. Many services are inexpensive, so much of the time they are worth it if you really feel as though you have a chance. It can be very reasonable and certainly less trouble to hire a professional to make sure that your loan documents are valid. Most importantly, by relying on the expertise of professionals, you give yourself the best chance of a favorable outcome.