What makes a credit agreement legal
With an overwhelming publicity surrounding “how to get your credit card debts written off” recently we thought we had better lay out what is right and what is wrong.
The method of getting rid of your credit card debts is a fairly complex one that relies on exploiting the 1974 Consumer Credit Act. This is an act that sets out guidelines for how a credit agreement should be put together and of course implemented. If these guidelines are not met it is sometimes possible to write off your debt.
Although it should be noted that any credit card company will certainly not just rebate or write off the debt without a battle first. With this in mind it is best that if you are going to try to write off your debts using this practise it is best that you engage a very good solicitor to do the work for you. This may result in fees but if the debts are high enough it may be worth it.
What Causes a Credit Agreement to be Illegal?
- The lender will always need to be able to produce copies of the original credit agreement if it is demanded. If they cannot produce the agreement then under the law the debt is not enforceable.
- Each and every credit agreement will need to be signed by you and the lender and if it is not then again it is invalid.
- When engaging in a credit agreement it is imperative that the APR is stated. This means that the interest on the agreement needs to be clearly stated and also any other costs involved.
- If the credit term and the amount of finance is also not clearly stated on the agreement then there may be grounds to challenge the agreement as unenforceable.
- For any of these methods to work the agreement needs to have been taken out before the 06/04/2007 as a new consumer credit act came into effect that is updated.
At this stage the information in this article is only brief and should not be relied on if you decide to pursue a challenge. It is imperative that you consult an experienced solicitor if you feel that you want to take any of the above forwards.
In the meantime instead of trying this it may be better to talk to a professional debt company that is ideally suited to helping people in debt. Try our free debt calculator it will only take 60 seconds and all of the companies on Confused Debt are pre-vetted and verified by us.
