Credit Card Killer

[Yoda]

..found duplicate post.

[EXC]

Re: Credit Card Killer

Birmingham 'debt-buying' firm back in business after trading standards ban




Birmingham Post - Business - Business News - Financial - Birmingham 'debt-buying' firm back in business after trading standards ban

A Birmingham business which promised to make people debt free for as little as £1 has launched a new service, hours after it was banned from ‘buying’ debt.

Birmingham Trading Standards secured an interim Enforcement Order at Birmingham County Court against debt sale firm Momentum Network Limited, following an investigation that found its activities were causing “significant detriment” to vulnerable consumers.

It is thought that people handed over more than £1 million in fees to the firm, which traded as Credit Card Killer at Baskerville House in Centenary Square.But now the firm appears to be providing a service it describes as “Benefit Purchase”.

The OFT said that many of Momentum’s customers were enticed by the promise that they could become “debt free in two weeks” by selling their debts to the company for £1.

The company, run by husband and wife team Basil and Amanda Rankine, has been banned from engaging in ‘debt sales’, from making misleading claims or carrying on ancillary credit businesses. Credit Card Killer ‘bought’ £3m of other people’s debt in just two months. The OFT estimates that the firm raked in £1 million in up front fees from its ‘debt sale service’.

Court documents from an earlier hearing involving the Ministry of Justice estimates that Momentum Network ‘bought’ £3m of consumer debt between November 2008 and January 2009. It has also warned that the individuals who ‘sold’ their personal loan, credit card and car loan debts will still be liable to pay them back.

A notice on the firm website said today: “Momentum Network Limited no longer offers any of its former services.
“Instead Momentum Network Limited is offering a new service based on the courts finding on 22 April 2010, which highlighted possible issues with terminating agreements. “Benefit Purchase is a better description of the new service offered. “Terminate your agreement yourself and sell your benefit to Momentum Network.”

Momentum Network was stripped of its authorisation to provide regulated claims management services by the Ministry of Justice (MOJ) in July 2009.

The company appealed the decision and the outcome of the appeal is currently pending. The Office of Fair Trading warned that consumer debts can not be sold on without the permission of the original creditor. The OFT said: “Consumers are warned not to deal with companies, or agents working on their behalf, that claim to be able to buy debts without the consent of the lender. “Businesses that suggest otherwise are making clearly misleading claims. “Consumers who ‘sell’ their debts to one of these businesses run the serious risk that they will still be liable for their original payment obligations, lose the money they paid and continue to be subject to debt collection activity and negative credit scoring.”

A spokeswoman for Birmingham Trading Standards said: “We are aware of the new service that Credit Card Killer is offering. “We are seeking legal advice on whether it may be in breach of the injunction, but it will be a court that decides.”

A statement on the company website says: “We are glad to say CCK is still trading and we are looking at our marketing literature in light of the courts comments. “But as to our knowledge the law has not changed since the order was made or the past court judgments that support what we do.
“This is a very serious matter and we are delighted that the issue of lender, debt collector, credit reference agency conduct will finally be put under the spotlight. “I have always said do not tell us we are wrong, show us. As yet no one has shown us. If we are incorrect then it should be easy to prove it to everyone and we will be the first to concede to the truth.”

Basil and Amanda Rankine have featured as advisers in a number of TV debt programmes. The website boasts that the couple set up the business after they argued their way out of repaying approximately £115,000 worth of their own debt.

It is believed the Rankines charge indebted clients a flat fee of £450 plus 10 ten per cent of the outstanding debt for a loan agreement, in return for ‘buying’ it off them for just £1. There is a further charge of £350 plus ten per cent for additional agreements.

[Curlyben]

Re: Credit Card Killer

*Shakes Head*

If it looks like a duck, waddles like a duck, quacks like a duck and taste great with plum sauce then its still a DUCK.

[Amethyst]

Re: Credit Card Killer

Sale of Student Loans Act 2008 (c. 10)

[Andy1969]

Momentum Networks Ltd t/a Credit Card Killer.

I stupidly used the Rankines service Momentum Networks Ltd t/a Credit Card Killer... I paid a considerable amount of money and now I'm not only left with the debt my credit reference file is nothing short of shocking. As you'd expect the Rankines are pocketing the money and are not communicating with people.

They have now registered their company as non-trading, what happended to the millions they received and are still receiving... their website is clearly open for new business, dont they pay tax or is that just the normal people!!!

[Amethyst]

Re: Credit Card Killer

how long ago did you sign up with them and ''transfer'' your debts to them ?

any contact from the creditors ?

I think they do have a warning on their t&cs about credit ratings etc. as it is rather inevitable if you just stop paying.

how much have you paid CCK and how much £ worth of your debts have you ''sold'' ?

[Have Issues]

Re: Credit Card Killer

Sorry - I'm rather new at this - but if you transfer your debt to CCK then surely the bank can't report you to credit agencies - they should report CCK as they are the ones who now have the debt. Am I missing something?

[Curlyben]

Re: Credit Card Killer

Yep, what you are missing is that what CCK claim and what actually happens are TWO completely different things.

As far as the Banks are concerned YOU are the debtor.

[pt2537]

Re: Credit Card Killer

time to dispel myths

Liversidge v Broadbent [1859] - A debtor cannot relieve himself of his liability to his
creditor by assigning the burden of the obligation to some one else. Novation
required, not assignment.

[Guest]

Re: Credit Card Killer

Hi
We had a running debate with one of these people over on CAG.
It seems that the legislation they depend on is based on a remark made by a judge when he ruled that a section 78 request did not have to be complied with because the agreement had been terminated and therefore no longer “under an agreement “as required by the provision.
They extrapolate this to mean that if an agreement is terminated then it is no longer regulated and can there fore be sold.
The perceived wisdom on this is this they are correct, however as you so rightly say , the liabilities under the contract cannot.
I am not really sure what it is then that the debtor is selling?
Peter

[matthewsmith]

Re: Credit Card Killer

How was it doing now?

how long ago did you sign up with them and ''transfer'' your debts to them ?

any contact from the creditors ?

[Andy1969]

Re: Credit Card Killer

Sorry guys, I missed your questions:

I signed up to Momentum Networks Ltd t/a Credit Card Killer in Nov 2009. I paid over £5k for them to take on a considerable amount of debt.

Initially the first month was talking to someone on the phone. But after that nothing. A total blackhole and it has been ever since. My credit file was actually very good before, it was simply the percentage rate changes on the agreements that was killing me.

Over a year later my credit file is defaulted... I cannot even get a bank account and every creditor chases me on a weekly bases with threat of court action and home collections....

I'm now in more debt that I started and have since found more people on line who have used the services of Mr Rankine and has the same response, one even turned up in court and no body from CCK turned up.

If you can get out of the debts yourselves and I now know you can, do it. Do NOT under any circumstance use the services of Momentum Networks Ltd t/a Credit Card Killer or anyone associated with Mr Basil Rankine.
------------------------------- merged -------------------------------
And if you werent sure before - check the press :

Momentum Networks Ltd t/a Credit Card Killer

http://www.oft.gov.uk/news-and-updates/press/2010/43-10