The Background to the New Unenforceable Agreement Claims Industry
According to the Claims Management Industry, about 50 million Credit Agreements are signed in the UK each year. It is believed that tens of millions of credit agreements could be discovered to be unenforceable. Some research suggests that lenders may have issued over 20 million credit agreements in the UK, ranging from credit card agreements to secured and unsecured loans, which are likely to be in breach of the 1974 Consumer Credit Act, They may be considered improperly executed and therefore 'unenforceable'.
If your Credit Agreements are audited as being unenforceable what does it mean for you?
Many consumers are now enjoying the success of freeing themselves from debt, by instigating claims against the lenders who have effectively used the consumer to make billion of pounds through irresponsible lending- 9 billion alone this year in interest and fees according to news reports.
Unenforceable agreement - a contract between two parties which due to irregularities and breaches of prescribed terms under the UK 1974 Consumer Credit Act legislation is unenforceable by the lender or the Court. The lender is unable to force you to pay the debt back. They do not have the right to sell the debt on to a debt collect or third party. Many UK consumers are starting to realise the true extent of their consumer rights and are now sick of the debt based society we are forced to live in.
Thousands of consumers are challenging the lawfulness of their Finance agreements to establish whether they are unenforceable because they are in breach of contract. A national debt advice organisation says its offices in some of the most affluent parts of the UK are being overwhelmed by demands for help.
Where a borrower's credit agreement is declared improperly executed or 'unenforceable', experts advise that you should continue to make your contractual payments until such time as the claim has been resolved and once your claim has gone through your credit file will be in tact. As a result of a successful claim the following may happen; -
* The loan is written off by the lender leaving a zero balance achieved.
* Your credit file will show the credit agreement as either 'settled in FULL' and may have a correction notice added, or the account insert may be removed altogether. You will have to push for this though.
Many, many people have successfully pursued their creditors and have had thousands of pounds worth of debt written off. If you are uncertain about your own credit agreements you should seek specialist advice from an adviser registered with the UK Ministry of Justice.
Author Resource:-
Julie Ashton is a teacher.She writes on a range of financial matters,debt, debt management options, and particularly about the new Unenforceable Financial Agreement Claims industry. Unenforceable finance agreements are just one of the many claims Credit Claims Compare discusses on its website, together with other forms of claims such as;- DIY debt elimination methods, reclaiming credit card charges, reclaiming bank charges, reclaiming mis-sold PPI payments. http://www.creditclaimscompare.co.uk Check out more on Credit Cards Written Off. Truth or Scam?
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