Wipe Out Your Credit Cards And Loans

Wipe Out Your Credit Cards And Loans

Do you know that you can wipe out your credit cards and loans? When you are in debt, you will go through life quite an unhappy person, as you never know whether the debt collectors may come calling in. Fortunately, there are various solutions that can help you to wipe out your credit cards and loans. These methods are collectively known as debt management solutions.

Debt management solutions will enable you to wipe out your credit cards and loans no matter which types they are. You will need the assistance of a professional debt management company in order to be able to wipe out your credit cards and loans with success. A professional debt management company will take a personal look at your own financial condition in order to determine the solution that is most appropriate to wipe out your credit cards and loans. A good solution will take your financial ability into consideration in order to ensure that you can manage it. Without carrying your solution to the end with dedication, you will not succeed to wipe out your credit cards and loans.

In this effort, it may be advisable to go for debt consolidation, whereby you effectively merge all your debts into one place. This means that you won’t have to pay for all your various debts separately, but will instead make just one monthly payment to cover all of them.

If you take unsecured debt consolidation in order to wipe out your credit cards and loans, you will have to pay higher rates of interest in view of the greater risks taken by financial institutions. On the other hand, you will need a great deal of commitment in case of secured ones so that you do not risk losing the property you have used to obtain the loan.

Debt consolidation is a good way to wipe out your credit cards and loans. It is, however, important that you ensure you are dealing with a company of good repute. In addition, you will need to take your own financial situation into consideration. In this way, you will be able to have peace of mind when you wipe out your credit cards and loans.

Are Credit Card Penalty Charges Unlawful?

How to Reclaim Credit Card Charges

If you have a bank account, credit card or loan of any type you will no doubt be aware of the fees you are charged by your bank should you transgress their rules of business. Types of charges include late payment fees, exceeding overdraft and credit card limits, bounced cheque fees, refused direct debits, standing orders and other payments. It is possible to reclaim credit card charges easily.

British Consumer Law states that any charges credit card providers and banks levy on their customers must be proportional to the actual costs the lenders incur. The question is this, ‘does it really cost £35 to send an automated letter when someone’s gone 1p over their limit?’ The credit card lenders are not supposed to fine you; yet over the years that is what they’ve done whenever people have missed credit card repayment dates or exceeded their credit limit. For this reason you should be able to get back the last six years’ worth of fees and charges. It is no surprise that the UK credit card industry made somewhere in the region of 9 billion pounds profit last year from interest and charges paid by consumers.

Even the OFT says credit card charges are unfair

It was not realised at the time but a report in April 2006 by the Office of Fair Trading (OFT) was absolutely crucial in supporting the case for reclaiming credit card charges. Having investigated credit card charges the OFT said, in plain English, that it would not launch a specific investigation on any card companies with charges lower than £12. While the OFT ruling had no technical power, across the board, most credit card companies reduced their charges to £12. This was of course a positive step but actually this amount, I feel, is still far too excessive. The real administration costs are usually little more than a few pounds. It has made it a lot easier to reclaim back the difference between what you were charged and the £12 figure. Therefore for each £35 charge, you could receive a refund of at least £23 although many people receive the whole £35.

The bank charges test case doesn’t impact on reclaiming credit card charges.

You may have read of the OFT’s decision to introduce a Bank Charges test case which has led to the financial regulator, the FSA, putting a hold on reclaiming. It’s important to understand this is specifically about bank charges and does not apply to credit card charge re-claims.

There are a number of excellent companies who offer a first class service in reclaiming credit card charges for you. They act on a no-win-no-fee-basis and usually charge a percentage of the total charges refunded to you which varies from company to company.

Step-by-Step Guide to Reclaiming Credit Card Charges

If you have a credit card of course you will no doubt be aware of the fees you are charged by your lender should you transgress their rules of business. Types of charges include late payment fees and exceeding credit card limits, bounced cheque fees, refused direct debits, standing orders and other payments. It is possible to reclaim credit card charges easily.

The following steps detail how to reclaim credit card charges if you want to do it yourself. There are however a number of excellent companies who can do this for you if you don’t have the time, energy or patience to do this yourself.

Remember the prime aim here is to receive a refund of the money. So think of each step as part of a negotiation, to make your reclaim as quick and easy as possible. You should treat each credit card, whether a current or closed, as a separate reclaim.

Reclaiming credit cards charges won’t impact your credit score

Many people worry about the impact of reclaiming charges on their credit rating. Yet don’t worry. Banks and credit card companies can’t put a note about your reclaim on your credit reference files, though the fact you missed a payment or went beyond your credit limit in the first place will have impacted it. While the reclaim won’t be on your overall file, individual card companies may keep their own notes on you as a ‘difficult customer’ and this may impact any future applications you make to them. So take out a spare card just in case.

Step 1. Find all your charges and add them up

You need to find all the fees you have been charged by each credit card lender. You can go back six years in England and Wales or five years in Scotland; these time periods are limited by law. This includes late payment and ‘over the limit’ fees but not standard account fees or interest.

What if I don’t have the details?

How many people have all their bills going back six years? If you’ve online banking access, first see what’s available there, if not send a letter to your credit card company requesting a fully comprehensive list of all past charges. Some will send you the information if you phone to ask so you could try this first.

Either way, you’ve a legal right to do this under the Data Protection Act. Unfortunately card companies are legally allowed to charge for this info – the maximum amount is £10 – and card companies being card companies, they tend to charge the full amount. So to save time, enclose a cheque for postal order for ten pounds in your letter.

The card company only has a maximum 40 days to respond. If you don’t hear anything back, follow up with a phone call and – if still getting a wall of silence – then report it to the Information Commissioner for a breach of rules

Step 2. Take out a ‘backup’ credit card in case your lender closes your account

If your card is still in use, some providers may decide close your account when they pay out. So if you’re still using the card you need to take this into account. Luckily it’s much easier to sort out with credit card reclaiming than with bank charges reclaiming. If you’re still using the card, there are a number of simple steps you can take.

If you can simply pay the debt off, great. If not, apply for a new card or cards to gain a big enough credit limit to shift the debt to; this should also save you money. Don’t be overly scared by the prospect of this; the Financial Ombudsman has ruled against providers closing accounts and it happens less than it used to. So if yours is closed it’s worth making an official complaint – and you may be due even more compensation.

Step 3. Write to your credit card company and ask for your money. Remember if you don’t want to do this yourself you can use a claims company to do it for you. This will save you time and energy.

Now it’s time to contact the credit card company to ask for your fees back. All you need to do is write and say you believe all your past charges were ‘disproportionate’ and detail them. Say you want your money back. The past OFT report improves the chances of a successful reclaim, although it does mean there are different amounts you can ask for depending on when you incurred the charges, and how much work you want to put in.

How much should I ask for?

It is up to you about how hard you are willing to push your lender. Remember the OFT has indicated any charges higher than £12 are unfair.

Charges after June 2006. For any charges on or after June 2006, you were most likely charges £12 and as this is already set to the OFT recommended amount; you simply need to ask for the full £12 amount to be refunded.

Charges from before June 2006. Credit card charges from before this date will usually have cost between £30 and £35. With these, you can ask for either the full amount of each charge to be refunded or the difference between the actual charge and the OFT recommended fee of £12; for example, a charge of £35 minus £12 would give a refund of £23.

Providers are much more likely to pay out the ‘difference’ figure than the full figure; so if you just want the easiest route, this is for you. Alternatively, many have succeeded in getting the full fee back (especially for pre-June 2006) as credit card companies aren’t keen to justify their charges in court. Though this may mean more of a fight, and you could end up needing to ask the Financial Ombudsman to take on your complaint or start court action.

Whilst most people shouldn’t need to get this far, it’s likely to take slightly longer – but balance this with the possibility of receiving a bigger payout. Having said that, as I believe the charges are unlawful, I think it’s worth asking for the full refund at this stage. You can always change your mind later on if you are offered a settlement for the difference between what you were charged and £12.

If you were to go to court and win, you would be entitled to add 8% interest (not compounded) on top of your claim, from the date you were ‘first deprived’ of the money (i.e. the date of each charge).

Therefore as a negotiating tactic, you may want to ask for the interest as part of your initial claim. Do understand though, you’re not legally entitled to interest unless you win in court; but asking for interest now is all part of pushing the lender. You may get the interest on top but even if not, asking for it could help push the provider to settle quickly, as it may just say “here’s the money, without interest”. You will need to decide if you want to take it to court or take the offer. It’s up to you.

Credit Card Crisis! How many cards do YOU have? Write Them Off!

Credit Card Crisis

How many credit cards are too many? Remember when you got your first credit card? There was probably a feeling of excitement or appreciation for the fact that this little piece of plastic somehow meant that you were maturing into the responsible adult you always thought you’d be.

Then came the next one and the next one after that. Eventually, after you got a decent job and starting accumulating bills and other loans, you began to get more than a few credit cards in the mail every month. Many of those said you were preapproved and all you had to do was call a phone number and you’d have yet another credit card in no time. That’s where the problem started. Most people have at least three or four credit cards. In some cases, people have accumulated more than nine or ten credit cards. It comes to the point where you have to ask yourself ‘how many credit cards do I really need?’ To speak the truth, all those easily attained credit cards were just a trap trying to get you to spend money on them so that yet another company would be able to hold you accountable for an unpaid debt.

And if you’re one of those people who just kept spending money on all the credit cards you had, you’re probably feeling the tight squeeze of owing so much money to so many different credit card companies. This is where it stops. Realistically, a person doesn’t need that many credit cards. One good method of maintaining a good financial record is to limit the number of credit cards you have. You should have one main card that you use. This card should be the one with the lowest interest rate, and the one that gives you the most benefits in terms of reward plans and credit limit. Every 12 months or so, you can request an increase in your credit limit. If you are a good customer then they will likely grant that request.

It is a good idea to have another credit card with a reasonable interest rate and relatively high credit limit as well. But this should be a card that is rarely used (a good tip is to only have one or two minimal charges on this card simply to keep it active and open) and is mainly kept as a means of a “back-up” plan should you need a larger amount of money for an emergency or an unexpected and necessary purchase. It’s up to you whether or not you would have a third one, but if you do, stick with the same plan you have for the second card and do not use it often. There is absolutely no need to keep acquiring credit cards and piling up a large list of debts owed.

Consolidate on one card and keep another as a “just in case” credit card. Any additional credit cards will only give you headaches and leave you with empty pockets.

If you have credit agreements taken out before April 2007 there is a new unenforceable credit agreement claim which is becoming more and more known about here in the UK. It is possible to have your credit finance agreements –agreements such as credit cards, store cards, secured and unsecured loans, car finance agreements, and those with payment protection insurance ( PPI) ‘audited’. They may not comply with the terms of the 1974 Consumer Credit Act and if they do not they are unenforceable credit agreements. This means you can claim to have them written off. That is the balance completely cleared. For NO FEES at ALL a solicitor with handle your claim. This is on a no-win-no-fee basis so it is risk free. Many people like me, have found this to be the perfect solution to their debt problems.

Call 0845 475 5435 NOW to make a claim.

The extent UK Credit Card usage

UK Credit Card Crunch

It was announced at the beginning of 2009, that Capital One, one of the UK’s largest credit card providers, will be increasing credit card rates by 14 per cent. The company justified the rate hike in a notice to clients claiming that it’s costing them more money to lend funds due to “changes in the credit environment.” There is certainly a change in the economy that is affecting Brits across the nation. This is a fact that’s difficult to dispute. The changes are hitting households in a variety of ways. British consumers that have found themselves in financial trouble with credit debt are being offered a lifeline. The UK government has recently intervened on their behalf with some new directives. They have outlined new regulations that give credit cardholders a 30 day grace period to consult with the Citizens Advice Bureau in reference to their money woes. There is an additional 30 day period in which payment demands will remain on hold while consumers attempt to work out repayment plans with creditors.

The Citizens Advice Bureau is a charity organization that helps people resolve legal and money problems by providing free, independent and confidential counseling. The organization has over 3,200 locations throughout the UK. The group also works to influence policymakers concerning consumer issues, debt problems, and other areas of public concern. The government is also forbidding credit card companies from changing their interest rates during the first 12 months of a new customer’s business.

This protection has been enacted due to complaints surrounding major increases in interest rates only weeks or months after accepting a promotional offer by a credit card company. This is good news for most credit card consumers. There will probably be far fewer lower introductory offers with rock-bottom interest rates extended to prospective new customers as a result however. There are signs that we Brits are starting to take notice of the seriousness of the current credit crunch.

Research by Abbey credit cards show that more than 50 per cent of those in the UK have cut back on dining out at restaurants and pubs. The survey also reflects a reduction in British carry out trends as well. Many are opting to cook meals at home in an effort to cut back on living costs. Most credit counsellors agree that charging restaurant meals is not a good financial practice so this is an encouraging trend. According to an Abbey Banking study in October 2008, disposable income has decreased 29 percent compared to two years ago. The study indicated that most Brits are spending about 75 per cent of their cash on “essential” items such as rent or a mortgage, food, and other household bills. Two thirds of UK citizens typically are out of money before payday according to the report.

These are disturbing statistics but are a true reflection of many individuals’ financial situation. This report makes it clear that individuals need to improve in the areas of budgeting and planning. There are many changes occurring in the present economy. UK citizens are feeling the pressures of the credit crunch along with many other countries throughout the world. There is an amount of hope on the horizon, however, as we Brits adjust our attitudes and the government reaches out to consumers with new regulations.

Financial Agreement Claims – Help for Families During the Credit Crunch

Are you feeling the pinch during the credit crunch? Help may be at hand in the form of a new finance claim. This new and fast growing financial claims allows customers to audit any finance agreement taken out since April 2007 to assess whether it has issues which could make it unenforceable. All agreement must follow the rules laid down in the 1974 Consumer Credit Act. Many agreements fail to do this. This means you may be able to wipe out your credit card and loan balances. It doesn’t matter if you are in arrears or following a debt management plan or IVA. You can still claim.

The types of agreements which are potentially unenforceable are;-

• credit card agreements
• store card agreements
• car finance agreements
• higher purchase agreements
• unsecured loans
• consolidation loans

You need to find a reputable financial claims management company to act on your behalf. How do you find one from the ever increasing number? And what do you look for?

Up front fees

This is a sore point for some people who wonder why ‘upfront fees’ are charged at all. The vast majority of financial claims managers charge fees in order to carry out a full and detailed audit. These range from around £195 to £495. Basically this is to look at your agreement in detail and assess it for breaches. There is a great deal of work involved. The process takes up to a year at the moment. The rational behind this is that the companies need some form of liquidity as every business does. The fees are refunded if your agreement is found not to be unenforceable. Some companies take a small administration fee.

BUT NOW YOU CAN CLAIM FREE! YES NO FEES AT ALL! Call 0845 475 5435

Auditing – Don’t be mislead

Your agreement must be obtained from your lender before you have a definitive answer as to whether you have an unenforceable contract or not and this will cost you £10 usually. Some companies offer this free and some request £1.00 which is the minimum fee stipulated under the data protection act. It is only after a full audit that you will know if you have a claim or not. Some companies mislead clients by saying they offer a free audit when in reality they ask the same preliminary telephone questions that all companies ask to establish if it is worth considering a full audit or not. For example was the agreement taken out prior to April 2007? What is the balance? Different companies claim for different balance amounts. Who is the lender? Some have more of a reputation for writing unenforceable agreements than others. This is not a full audit. As far as I know there is no company out there yet which offers a solicitors audit – free.

Successful Claims

The majority of companies have been in business for over a year now. Some will be ‘introducers’ for other main companies. They should be able to tell you how many successful claims they have achieved and the length of time it took to achieve the results.

Back end fees

Some companies charge fees at the completion stage of your claim. Be sure to ask if this is the case for you. Some charge 30% while some charge a fix amount of £1000. Most companies don’t charge any fees.

Other fee structures

I have come across some peculiar fee structure whereby some companies offer to handle your claim for you paying them six months credit card repayments. Others offer to take over your debt for you and leave you debt free in six weeks. I would not take these seriously. There are plenty of straightforward ways to clear your cards for a reasonable fee, no misleading promises of a free audit and certainly no back end fees.

Time scales

The process is a long one relying on the co-operation of your lender which of course is not likely to be forthcoming. The legal to and fro-ing will take up to a year. There is no way to avoid this so claims of speedy conclusions, at the moment, are false. The lenders use all sorts of tactics to delay matter for example refusing to send the copy of the agreement to your claims manager but only dealing with you and completely ignoring the requests made by your solicitor.

Be patient, persist and it will pay off in the end.

Mortgages and secured loans can also audit.

Your claims management company and ‘audit’ any mortgage offer, current or redeemed going back 12 years.

Your solicitors will look extensively at all the different aspects of the agreement

• Mortgage Indemnity Guarantees
• Unfair early redemption penalties
• Sub Prime mortgage agreements
• Payment Protection Insurance Policies
• Secret commissions
• Miscalculated APR’s
• Unfair charges
• Unfair Terms and Conditions
• Any form of ‘unjust enrichment’ by the lender
• Overpayments

Where your agreement is deemed as ‘unfair’ in any way you may be entitled to compensation. Levels of compensation will be assessed by the level of unfair treatment you may have received. In all cases the solicitors will seek to recover monies that may have been over paid or charges that have been unfairly levied whilst also seeking damages from the mortgage provider for wrong doing.

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