Figures are already showing that a staggering number of credit agreements taken out prior to April 2007 are legally unenforceable. The reason is due to a change made by the UK Government in 2006 to the Consumer Credit Act 1974. It provided consumers with better rights to challenge their credit agreements, focusing on the specific criteria of what needs to be clearly stated by all banks in each agreement.
Is it real?
Yes, in fact the first case was successful in 2003 with the ruling on unenforceable contracts made by the House of Lords. The Office of Fair trading deemed that many of the terms and conditions contained within agreements for credit cards and personal loans were unfair, therefore the contracts were unenforceable. This gives the lawyers the ability to clear the balance on credit cards and personal loans.
Is this legal?
Yes! The process of writing off the balance is a completely legal.
Is there a risk?
No. There are a significant number of processes at application stage that can identify if a case may or may not be successful.
Will it negate my card/loan account?
Once the balance of your card or loan has been cleared then it is highly likely the lender will close your card or loan account. However there is nothing to stop you from opening another card or loan account with different company.
What happens when I apply online?
When you enquire online it is important to establish that any Financial Compensation Claims company offers a refund policy. Enquiries are normally passed to one of their specialist partner consultants who will contact you and arrange to complete your application. They keep you informed as to the progress of your case every step of the way.
How do I know I am getting the best advice?
The whole process is regulated by the Ministry of Justice, they have specific rules and guidelines that must be followed on each and every case.
Have I got any alternative route of redress?
Yes, you could approach the Financial Ombudsman.
Will I need to go to court?
It is very unlikely that your case will ever go to court, most lenders agree before court action begins. In the event of your case progressing to court their specialist partner lawyers will attend for you.
Can I keep using my card?
No, once the claims company has agreed to take your application they strongly advise that you do not continue to use your card, doing so may affect the ability to successfully complete your claim.
Will I be able to get another credit card or loan?
Yes, nothing in the process should affect your ability to apply for another credit card or loan with a different lender.
Do you have an unfair, illegal Credit Card or Unsecured Loan? The Author is a huge fan of Credit Issues
dear sir/madam
my name is ullah and i am 54 years old and i am suffering learning difficulties also i am jobless. i have got about £15000 laon and credit card debt which i cant efford to pay back. i have got mortgadge+service charges+council tax+gas bill+electicity bill+phone bill+waterbill+my expenses icant afford to pay those even .my sone help me every moth to pay my mortgadge but now the other amount of i really cant pay .how would i can right of my debt? please do assist me.
thank you
a ullah