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Solicitors warned on debt write off claims :D :D :D

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  • Solicitors warned on debt write off claims :D :D :D

    Solicitors warned about firms that mislead the public about chances of getting debts written off

    21 April 2009
    Solicitors are being warned not to accept business from introducers which mislead consumers about the prospect of getting loans, credit card and other debts written off.
    The Solicitors Regulation Authority (SRA) is issuing the warning following a rash of misleading statements in adverts, especially on the internet, making dubious claims or leaving out important information which might breach consumer protection regulations.
    Some of these adverts wrongly suggest that almost all loan or credit card agreements in place before April 2007 are unenforceable under the Consumer Credit Act and can therefore be written off.
    SRA Chief Executive Antony Townsend said, "These ads appear to offer an easy way out of difficulty to people who have debts they are struggling to pay. But many credit agreements do meet the legal requirements and, therefore, can't easily be challenged as unenforceable."
    "We've noticed a sharp increase in the number of solicitors getting involved in this activity since last autumn. The SRA is currently investigating 10 firms. Any that are found to have breached Rule 1—the core principles—of the Code of Conduct may face the Solicitors Disciplinary Tribunal."
    The SRA is liaising closely with the Claims Management Regulation Monitoring and Compliance Unit at the Ministry of Justice, which regulates introducers. The Head of Claims Management Regulation at the Ministry of Justice, Kevin Rousell, said: "We won't tolerate claims management businesses that set out to mislead consumers and will do our utmost to make the regulatory regime a hostile one for those not willing to follow the rules. Action against solicitors that aren't complying with their Code of Conduct is also essential to ensure regulation is working effectively from both ends and that solicitors do their due diligence, including when dealing directly with consumers."
    Citizens Advice has warned that the claims handlers often charge about £500 upfront to check a credit agreement, even though there is no guarantee of success. Where people have several debts, the fees can mount up to several thousands of pounds. People may then be sold a "no win, no fee" agreement to take legal action that can cost them even more.
    The SRA advises solicitors to check the advertising of the claims introducers they are dealing with or are approached by. They should avoid accepting business from introducers that make claims like the following:
    • "Eighty per cent of credit agreements are unenforceable."
    • "Fifty million credit agreements are created every year—at least 25 million are unenforceable."
    • "We'll get your credit cards written off within six weeks!" "Fast results guaranteed!"
    • "We have a 100 per cent success rate."
    • "A positive outcome is guaranteed."
    • "We can write off all your outstanding debt, all previous payments could be returned, and you could keep any goods purchased."

    Antony Townsend warns: "Dealing with firms which con consumers who are already in debt in that way is indefensible, and would be unacceptable to all conscientious solicitors."


    Solicitors Regulation Authority - News releases
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

  • #2
    Re: Solicitors warned on debt write off claims

    That is excellent news
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

    Comment


    • #3
      Re: Solicitors warned on debt write off claims

      The worm is starting to turn..

      Comment


      • #4
        Re: Solicitors warned on debt write off claims

        Bout time, great news.

        Comment


        • #5
          Re: Solicitors warned on debt write off claims

          Better late than never eh !

          Comment


          • #6
            Re: Solicitors warned on debt write off claims

            You think - Whilst I agree there are charlatans out there the main reason for this is they don't want consumers to exercise their lawful rights. They don't want consumers to use the technicalities of the law to get out of trouble - after all have they tested any of these agreements before making this spurious announcement - I doubt it - I'm sorry despite all the hoop la its merely an effort to maintain the status quo - after all many of us KNOW thousands of the pre 2006 agreements ARE IN FACT unenforceable for many various reasons - remember it's the very reason this government emasculated the 74 CCA by removing sec 127

            Anyway another reason it's crap is a solicitor would undertake a loss survey to ensure the claim had merit BEFORE entering into a CCA so warning them is just another piece of spin to make it look like they are doing their job
            ------------------------------- merged -------------------------------
            & just to finish my little rant next time you complain to the SRA ask the handler if they are or have ever been legally qualified
            Last edited by righty; 21st April 2009, 23:03:PM. Reason: Automerged Doublepost

            Comment


            • #7
              Re: Solicitors warned on debt write off claims

              they aren't telling solicitors who deal with uneforceable agreements to stop it, simply the ones who work with those CMC's who advertise in a misleading manner and prey on vulnerable people.

              Which CMCs do Stephenson's work with?

              Also what happens if the law is changed again following the of 127(3) to make the removal of 127(3) retrospective? Then genuine claimants on made up excessive top loaded hidden commissions would be screwed as well as the debt avoiders. And you can't say that thats a complete impossibility.

              Why did non of these CMCs exist BEFORE 127(3) was revoked?
              #staysafestayhome

              Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

              Received a Court Claim? Read >>>>> First Steps

              Comment


              • #8
                Re: Solicitors warned on debt write off claims

                Of course they are Ame. - Using the CMC's as an excuse is just a means to an end. It's all meant to frighten Solicitors not to deal with such cases. CMC's DID exist before just not for this market because it was virtually unknown - also I note your comment about the law being changed - would that be because of the CMC's or because consumers were being too successful - as with this government I suspect the latter - if so that'a very poor argument "Be successful & we'll stop you" - that being the case be ready for the authorities crack down on sites like LB

                Also how many consumers are going to walk in off the street to seek help from their local solicitor most of whom haven't a clue when it comes to the complexities of the CCA - very few I suspect and that assumes they will even find a solicitor to take them on. - No IMHO that at the very least these outfits, good & bad, raise awareness as to the issues & we just need to try & make consumers aware that there are good & bad (without naming names of course) - perhaps as someone has already suggested a questionnaire that consumers can use in their dealings with the CMC's in order to determine their suitability, any commissions, do I get ALL of my compensation etc

                Please remember the way to Hell is paved with good intentions
                Last edited by righty; 22nd April 2009, 17:33:PM.

                Comment


                • #9
                  Re: Solicitors warned on debt write off claims

                  Thought you might like to look at this bunch Fair Judgement: Unenforceable Loan Personal Injury Solicitors

                  Whilst strictly there is no need to as it's in the public domain, according to Paul they have referred to his case in their blurb without consultation

                  Comment


                  • #10
                    Re: Solicitors warned on debt write off claims

                    Thincat I have moved your post to its own thread

                    Thincat CCA issues - Legal Beagles

                    PKea

                    Comment


                    • #11
                      Re: Solicitors warned on debt write off claims

                      Righty ,I agree with you, and yes the financial institutions should be held to account for their disregard of the CCA 1974 and often the 'mistakes' and missing prescribed terms were to cover very unfair practices.

                      We have already had the moral arguments so think thats dealt with already so won;t go back over it. I do think there is a danger of exactly what you have said, the law being changed 'because consumers were being too successful' and that removes the protection there for people who need to use the regulations to right wrongs. Also people who have major problems and have suffered terrible treatment by lenders and dca's are now being treated rather more cynically. Challenging credit agreements IS now seen as a get out of debt free card, and that is sad, IMO.

                      The companies who do charge huge fees for handling these agreements, cold call people, and give exagerated promises at a time when people are desperate and vulnerable, so yes I am glad the solicitors association, and the oft, are cracking down on those CMCs.

                      Of course any publicity for making people aware of their rights is good. Misleading people isnt.
                      #staysafestayhome

                      Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                      Received a Court Claim? Read >>>>> First Steps

                      Comment


                      • #12
                        Re: Solicitors warned on debt write off claims

                        I don't disagree but lets not tar everyone who are NOT a free to use website with the same brush something which the SRA are effectively doing - after all their 'advice' is NOT balanced - they don't say for example that their ARE some decent firms who take no payment whatsoever - No I imagine that there will be a few snotty letters making there way to the SRA as we debate - the SRA has overstepped it's remit - they are there to deal with matters AFTER the fact not before & it's for the Law Society to give guidance to lawyers

                        Also I ask again are you suggesting that consumers should not be too successful in case the law is changed - if so that's an appalling argument - as you MUST realise that even though all over the web that because bank charges run into billions we can only be scratching the surface when it comes to the vast numbers of consumers who are & have been ripped off by the banks - the more there are who's remit is to help consumers the better - be they a site like this or a CMC

                        I repeat I certainly don't think we should 'go easy' cos the government might change the law - personally I can't see them backing the lenders for some time yet - particularly after the devastation they have caused - note that because of strong protests & the behaviour of the DCA's themselves their right of entry has been put on the back burner
                        Last edited by righty; 23rd April 2009, 08:41:AM.

                        Comment


                        • #13
                          Re: Solicitors warned on debt write off claims

                          No they don't say there are some firms which are okay - but then the warning is to those who deal with the firms who do mislead vulnerable consumers.

                          I don't think they are tarring all with the same brush any more than the MoJ publishing the guidance over misleading advertising in january.
                          http://www.claimsregulation.gov.uk/u...2009%20(1).pdf

                          They are simply warning solicitors not to deal with those companies who are breaking those rules.
                          #staysafestayhome

                          Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                          Received a Court Claim? Read >>>>> First Steps

                          Comment


                          • #14
                            Re: Solicitors warned on debt write off claims

                            Hi there,

                            I have found this post to be extremely useful. Could anyone supply me with a recognised institution that will fight my case free of charge or on a no win no fee basis. Thanking you in advance.

                            Comment


                            • #15
                              Re: Solicitors warned on debt write off claims

                              In a word bickster & whilst I don't speak for the site I think the word will be NO If you want to use a CMC I'm afraid it has to be your choice & your choice alone - Just remember to do lots & lots of research before you do

                              On the other-hand you could try & do it yourself with the help of the site members of course

                              So tell us your story eh!

                              Comment

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