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I found this article in a newspaper section under finance when I was on the train last Friday. Is there any mileage in pursuing.............
Sorry the article did not copy and past that well, but the gist is there.
Legal loophole may write off your credit-card bill
^••••••••••••••••••••••••••••••••••••••••••••••••• H
Act to cancel debt
CREDIT AGREEMENTS within the UK are regulated undertheCpnsumerCred-it Act l974.This includes credit cards, unsecured loans, car finance and secured loans up to £25,000. Regulation under the Consumer Credit Act 1974 was intended to provide the consumer with a framework ensuring that relevant information was provided; the intention was to enable the consumer to make an informed decision when purchasing any credit related products.
The 1974 act includes numerous
clauses that define, among many
other terms and information that
should be included within
the agreement and
the way in which it
should be author
ised. If the agree
ment hasn't been
executed correctly,
it enables the con
sumer to challenge _
the validly of the agree- ~
ment. If it can be demonstrated
that the agreement is unenforceable, it
is possible to write-off the loan or credit
card balance.
A common failing by the lender is that under section 77 of the Consumer Credit Act 1974 (duty to give information to debtor under fixed-sum credit agreement) consumers have a right to request their original agreement from their lenders, however many lenders are unable to provide the original agreements. This makes it very difficult for the lenders to prove that the debt is repayable. Other common problems relate to terms and conditions which may not have signatures.
Many companies now operate in the financial claims market and will readily advise you whether or not your credit card meets the criteria to be challenged, generallyyou must have signed your agreement before April 6,2007 and the balance should be in excess of £5,000. If these initial criteria are
met, then a more detailed examination of your agreements can take place to establish whether they are enforceable or not.
Companies offering claims-management services should either be directly regulated by the Ministry of Justice or operate as an introducer to a duly authorised company. Such companies operate in many different ways, some have in-house legal teams, others have an external panel of solicitors. The basic principles behind handling your claim are the same, but the service you can expect will very much depend on the individual company handling your claim.
Each set-up has its pros and
cons. A company offering , in-house legal representation may work far more slowly than one with a panel of solicitors; a
panel of solicitors can cope with large volumes of cases
much more effectively. For obvious reasons, this
is a very popular service, given the hardship that so much of the UK population is experiencing at present. Demand for card reviews is growing daily. It is important to make sure that the company you select can cope with the increased demand that the market is experiencing.
Many claims-management companies ask for an up-front fee and this fee varies from business to business. Claims-management companies whose up-front fee is small can initially sound like a more appealing proposition, but customers should take time to choose the best deal for their needs. Small up-front fees usually indicate that the firm will rely on charging clients a proportion of the settlement that they negotiate with the lender. This can prove quite costly. A larger up-front fee may at first seem more expensive but it often works out cheaper. Consumers should be able to find a claims-management company offering a package that best suits their individual needs, but it pays to shop around.
Sorry the article did not copy and past that well, but the gist is there.
Legal loophole may write off your credit-card bill
^••••••••••••••••••••••••••••••••••••••••••••••••• H
Act to cancel debt
CREDIT AGREEMENTS within the UK are regulated undertheCpnsumerCred-it Act l974.This includes credit cards, unsecured loans, car finance and secured loans up to £25,000. Regulation under the Consumer Credit Act 1974 was intended to provide the consumer with a framework ensuring that relevant information was provided; the intention was to enable the consumer to make an informed decision when purchasing any credit related products.
The 1974 act includes numerous
clauses that define, among many
other terms and information that
should be included within
the agreement and
the way in which it
should be author
ised. If the agree
ment hasn't been
executed correctly,
it enables the con
sumer to challenge _
the validly of the agree- ~
ment. If it can be demonstrated
that the agreement is unenforceable, it
is possible to write-off the loan or credit
card balance.
A common failing by the lender is that under section 77 of the Consumer Credit Act 1974 (duty to give information to debtor under fixed-sum credit agreement) consumers have a right to request their original agreement from their lenders, however many lenders are unable to provide the original agreements. This makes it very difficult for the lenders to prove that the debt is repayable. Other common problems relate to terms and conditions which may not have signatures.
Many companies now operate in the financial claims market and will readily advise you whether or not your credit card meets the criteria to be challenged, generallyyou must have signed your agreement before April 6,2007 and the balance should be in excess of £5,000. If these initial criteria are
met, then a more detailed examination of your agreements can take place to establish whether they are enforceable or not.
Companies offering claims-management services should either be directly regulated by the Ministry of Justice or operate as an introducer to a duly authorised company. Such companies operate in many different ways, some have in-house legal teams, others have an external panel of solicitors. The basic principles behind handling your claim are the same, but the service you can expect will very much depend on the individual company handling your claim.
Each set-up has its pros and
cons. A company offering , in-house legal representation may work far more slowly than one with a panel of solicitors; a
panel of solicitors can cope with large volumes of cases
much more effectively. For obvious reasons, this
is a very popular service, given the hardship that so much of the UK population is experiencing at present. Demand for card reviews is growing daily. It is important to make sure that the company you select can cope with the increased demand that the market is experiencing.
Many claims-management companies ask for an up-front fee and this fee varies from business to business. Claims-management companies whose up-front fee is small can initially sound like a more appealing proposition, but customers should take time to choose the best deal for their needs. Small up-front fees usually indicate that the firm will rely on charging clients a proportion of the settlement that they negotiate with the lender. This can prove quite costly. A larger up-front fee may at first seem more expensive but it often works out cheaper. Consumers should be able to find a claims-management company offering a package that best suits their individual needs, but it pays to shop around.
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