I have just spoken with a friend and they are currently going through a process with a company to shut down their credit cards and not pay a penny back due to the terms and agreement being void or something like that.
She has 4 credit cards, obtaining her first when she wasn't even the legal age a good few years ago.
The company has written to the credit card companies requesting certain information about the agreement, which they have not responded (given a certain amount a days). The next step is for this company to proceed in making the credit cards unenforceable. In the meantime they have said the credit card people cannot hassle you and should freeze the accounts until the issue to resolved.
I ask if this process will effect your credit rating and she says no.
Anyone heard of this??? sounds to good to be true!!!!!!!!!!
I have done the bank charges thing in the past which got me a result, but this I have not heard off.
What are your views??
Not sure what happened but I am all paid up and finished...they even owe me money now ))
Hi Hammer.
I have heard of companies that will try and debts written off because the original agreements did not contain all required to be enforceable under the 1974 Consumer Credit Act. I do not know how successful these companies are and whether like the bank charges the banks just pay up rather have a test case lost against them.
It is often said that if it is too good to be true then it usually is and I would be dubious about paying anyone any money for such a service. In addition, if the money is genuinely owed, I find it a little distasteful of companies trying to persuade people to evade paying back what they can afford.
The bank charges and payment protection reclaims are different as these are unfair charges and levies forced on vulnerable people by the banks and the claimants only get back what was theirs in the first place. The legislation covering IVAs and bankruptcies is in place to protect debtors and offer recovery to creditors so I would be wary of evasion schemes purporting to use loopholes in credit card agreements. If these companies are making false promises, then there is a danger that the might of the banks will be unleashed on claimants, and I would be surprised if there was any comeback in the event of bankruptcy or repossession.
My view of this is it's debt avoidance plain and simple.
Presumably the money was borrowed with the intention of repaying it, so why should someone get out of paying it because they've discovered a loophole? If they can't afford to repay it then they need to take advice from an Insolvency Practitioner.
Last edited by Skippy on Thu Nov 20, 2008 2:27 pm, edited 1 time in total.
I agree Skippy as it detracts from those who are in genuine trouble and tars all debt advisors with the same brush. I do think people should have the recourse to law where they have been unfairly treated but this is different. Hammer did say that their friend was given a credit card when she was underage and if this the case then the debt should not be enforceable. It is wrong and predatory of the banks to give credit facilities to those under the age of eighteen.
That is definitely wrong and very scary - how many more people are getting into debt before they are even legally allowed credit?
I was looking at it from the point of view of the couple on Panorama last week who spent and spent and then got out of paying by saying the debt wasn't enforceable. Ironically they now owe as much in legal fees as they did on their credit cards - what goes around comes around!
But I suppose in these times if someone came to you saying that the 2,000 on your credit can be wiped out, due to the company not following appropriate procedures in the beginning, I mean don't we all remember all the credits cards landing in the porch left right and centre, not bothering about checking peoples credit, age, just a free for all.
The hiding of how much APR they would charge to those now in the know about such things
Seems it might come back to haunt them now with this.
But at the same time I agree with you guys, you got to have some sort of responsibility in paying back what you borrowed.
Would the credit card companies do the same to you if they could get more money????
Not sure what happened but I am all paid up and finished...they even owe me money now ))
I take your point and credit card companies certainly have not covered themselves in glory. Where there have been abuses there should be the law there to protect you, but I find it hard to believe that the courts would allow people with sufficient means to put two fingers up to their creditors. I would be afraid that people would pay a fee, be promised the Earth and when the **** hit the fan these companies would wash their hands of the problem.
Just spoken with my friend about fees, and yes they charge £295 per credit card (or other debt like HP etc). If the process fails they return the money....so the plot does thicken.
With the under age credit card maybe, but the others I would be like you guys, the what if........could happen and things would go from bad to worse for you.
Not sure what happened but I am all paid up and finished...they even owe me money now ))
As always I totally agree with the advice and comments given by Michael Peoples (secretly I am a big fan of him, as he is a really good guy who actually cares and gives good advice, ok I am also biased because I used to work with him! but he is genuinely one of the good guys and in this industry you meet far too many of the other sort!) I note you quote that they want £295 per card I wonder how much of this they would return if (and when!) they discover you do not qualify for the debt to be written off!. I personally would not pay any money out in this sort of situation you are likely to lose it and end up in an even bigger debt....the advice 'if it sounds too good it probably is'..rings true
))
