Unenforceable Car Finance Agreements

Could your car finance be written off?

It is the finance company’s responsibility to you, the consumer, to ensure that all aspects, all terms and each section of the agreement fulfilled the required terms and conditions of the 1974 Consumer Credit Act. If they failed in this duty to you then your car finance agreement may be unenforceable. When a motor finance claim is successful you will receive a cheque for the full amount of compensation awarded. Compensation is due to potential contract irregularities within any past or present motor finance agreements.

When you signed your car finance agreement it was the lender, not you, who produced the contract that was to be used. In most circumstances you would have had no choice over the terms within the agreement.

If you have a car with an outstanding finance agreement you may be able to claim to have the remaining balance written off. If a car finance agreement is unenforceable the lender may be forced to write off the debt with the possibility of you keeping the car. When you arrange car finance the agreement, contract and/or terms and conditions relating to the finance need to comply with all the relevant rules, laws and regulations. Even if you have ‘paid off’ your car finance in full, you may still be able to claim compensation.

Credit Cards Write them off!

Unenforceable Credit Card Agreements? Truth or Scam?

Whether it’s to spread the cost of an expensive purchase over several months, treat ourselves or to gain points towards a reward item, UK consumers are using credit cards more than ever – and owing close to £180 billion as a result. The balance has historically been heavily weighted in favour of the lenders who have been allowed to increase interest rates at will, charge any amount of fees they choose and increase credit limits without having us sign new agreements. A recent report by the Citizens Advice Bureau ‘Daylight Robbery’ looks at the extent of the problem of ‘extortionate credit’ and has as one of its conclusions:-

“This report argues that the existing legislation on extortionate credit is neither effective nor accessible to consumers. The current ‘test’ that determines whether a credit agreement is extortionate is heavily weighted in favour of lenders. Moreover, the test can only be invoked if a borrower is prepared to risk heavy legal costs in taking the initiative and making an application to the court.” This is no longer the case! You don’t have to risk heavy legal costs in taking the initiative. Its no-win-no-fee! And you certainly won’t have to go to court. Most lenders do not go to court and even if they do your solicitor will attend for you. If your credit card was taken out before 7Th April 2007 it is regulated by the Consumer Credit Act of 1974. This law requires ‘proper execution’ of the finance agreement you signed. It is not properly executed if it does not contain all the prescribed terms and conform to the regulations made under section 60 (1) of the act. It is in breach of the act. There is a long list of prescribed terms and regulations which credit finance agreement must adhere to – see below. Crucially you must have signed a document containing ALL the prescribed terms as described in the 1974 Act. If not your finance agreement is not enforceable without an order of the court and section 127 (3) requires the court to dismiss the application for the enforcement order. It may be considered ‘irredeemably unenforceable’. The Act was so complex and difficult that many lenders were caught out by its detail or simply chose to ignore the requirements of the law.

The Process

1.You need the account number of the cards you are claiming for. If doesn’t matter if you don’t have the agreement as your claims manager will request this from your lender.

2. Sign a request called a Section 77/78 which gives authority for your claims manager to request the information your lender holds on the account together with your original credit finance agreement.

3. Write a cheque for £10 payable to your lender so that your claims manager can request your credit finance agreement and account file.

4. NOW YOU WAIT! Your lender, under the Data Protection Act has 16 days to comply then is given a seven day warning – then another 28 day warning. In total 51 days! So be patient. At this point some lenders employ ‘dirty tricks’ in an attempt to delay matters. It is important to keep a record of the time scales involved and it may be quicker if YOU also request a copy of the agreement you signed. Keep checking with your claims manager to see if the information they need from your lender has been supplied.

5. When the lender sends back your account details claims manager will then be in a position to ‘audit’ the agreement. Some claims managers use ‘in house’ solicitors belonging to the company; some use a ‘panel’ solicitor who works for several claims companies and some use ‘auditors’ trained in assessing finance agreements. The audit of a credit finance agreement is straightforward. It is checked against a list of prescribed terms and regulations and scores as a ‘breach’ or ‘compliance’. You must have signed an agreement showing for example;-the annual simple and compound interest rates for purchases, balance transfers and cash advances together with the APR. It is not acceptable for these to have been supplied in a separate document. Your audit should show exactly why your agreement is non compliant.

6. If your agreement is unenforceable it will be allocated to a solicitor who will be responsible for your case. If you wish to keep a clean credit history it is best to continue making payments as although the agreement is unenforceable and therefore you cannot be required to make anymore payments, lenders put default marks on your file anyway. Some claims management companies claim to have any adverse credit marks removed and some do not. This is a grey area at the moment and it is important to discuss it with your solicitor first. If you want to keep your credit file clean keep on making your monthly repayments. Although you will possibly not get these back.

7. You sign a ‘conditional fee agreement’ with the solicitor who lodges a breach of the 1974 consumer credit act with your lender and prepares the case for court. You will not pay any costs than the intial fees.

8. It is unlikely that the lender will go to court. You may be made offers of ‘substantial reductions’ such as 60% off your balance. You must inform your solicitor of any correspondence with the lender and take advice. If you do accept an offer without consulting your solicitor and taking his or her advice you will become eligible to pay your solicitors fees. This is because the solicitors’ costs are funded by claiming against your credit card lender. If you receive an offer of a reduction in the balance rest assured it is a matter of time until the lender writes of your debt!

Unenforceable Credit Agreements: Making You Debt Free

With the incidence of bankruptcy and personal debts on the rise, many a consumer or even small business owners are left feeling overwhelmed by their out of control credit debts. If you are in a such as situation, and are praying for a miracle that will make your credit debts disappear, well then, there is one just waiting to happen. Indeed, it is not divine intervention that is going to help you clear your debts for you. Instead it is the credit company itself! Perhaps you have heard about companies that promise to help you do just that, stating that most credit agreements are unenforceable. So how do you go about proving this?

For starters, it is the devious nature of most credit agreements that come to the rescue of unassuming customers, just like you and I. If you carefully peruse your credit contracts you will notice the mention of what is termed the Consumer Credit Act, which first came into effect in 1974 and was thereafter updated in 2006. This law provides regulations that define and lending policies including credit cards as well as personal and even unsecured loan, in an effort to make lending a mutually reasonable arrangement. This Act sets forward certain testing criteria to assess the credit agreement with regard to interest rates and redemption penalty clauses. Making the credit agreement open for scrutiny has brought to light that most such contracts do not follow the regulations set forth by the Act thus deeming them potentially unenforceable.

So is your credit agreement really unenforceable? While this sounds bizarre, it is essentially true. In fact, most credit agreements signed in the United Kingdom before April 2007 may not really conform to the Act and are therefore unenforceable. In fact, there are changes in the nature of the law which are responsible for making those agreements that have not been modified to take into account the newer policies unenforceable, and this is not merely a loophole.

It thus brings us back to the original question. Are there credit agreements that can be proved to be unenforceable? Yes! That is indeed accurate, factual and very feasible and could apply whether you have debt via unsecured loans or credit cards, or even PPI insurance which can be reclaimed as most were mis-sold to customers who often didn’t need them or we never eligible to claim in the first place!

There are companies who undertake this procedure on your behalf, and may ascertain if your agreement falls under the unenforceable category by submitting your agreement details via the Internet. This may then proceed to an investigation phase where reports are submitted based on an audit with your credit company. An initial fee for each credit agreement may be charged, depending on the levels of service required. If your credit agreement is proved to be unenforceable, a lengthy legal procedure is initiated, which may be over a period of months and then your debt can be disregarded completely. In the end, by establishing that your credit agreement is in fact unenforceable you can claim a debt write off and be free of your credit debt forever!

Are Your Credit Agreements Unenforceable?

Are Your Credit Agreements Unenforceable?

A credit agreement is described as a legal contract where a person or entity is loaned money for a period of time. But if these contracts were not properly drawn up they are not legally binding. If you have signed such a contract and feel you were not given a clear understanding of what you were getting into, for example what your interest rates were to actually be listed as, you may be able to claim that your agreement is an unenforceable loan agreement. You may possibly be eligible to have that agreement dissolved.

Have you found yourself under the strain of paying excessive fees from credit cards, mortgage companies or car loans? The credit act of 1974 may offer you some relief. You may be under an unenforceable credit agreement. Millions of these agreements have been produced but are not binding. But you will only find out if you hire a solicitor through a claims management company to look into this financial activity.

There are solicitors who will take your case on a no win no fee basis. A number of these debts can be reduced or wiped out with no further payments. It will not be necessary to return any merchandise purchased. If you are concerned this action may affect your credit adversely as long as your debts are being paid you have no problem and if your credit is bad you may find your credit rating will actually improve due to the technicality that the debt once settled never existed.

Solicitors who handle these unenforceable loan cases are experienced in getting you a fair settlement from the companies who have taxed you with debt so unfairly. Given the proper information from you will be help in getting you a fair and equitable settlement from unenforceable credit agreements. If you entered into a credit agreement before April 2007 take a serious overview of your credit agreements. You may be able to have them written off!

Unenforceable Credit Agreements? How do you Know If you Have Them?

Unenforceable Credit Agreements

Some very important straightforward information about unenforceable credit agreements. If you have any unenforceable credit agreements you could reclaim thousand of pounds!

1. There is a good chance that some of your loans or credit cards are unenforceable credit agreements and so cannot be enforced by your lender. Even your mortgage agreement could be unenforceable
2. More and more people every day are finding they have debts they don’t don’t have to pay back, as more and more unenforceable credit agreement claims prove to be successful
3. There is a right way and a wrong way to approach your lenders in order to establish if you have unenforceable credit agreements
4. Many new claims management companies have started up in business offering to approach the lenders on behalf of people just like you. They do two things: establish if you have unenforceable credit agreements; take care of all the complex paperwork if you do have a case to make a claim
5. However, some of these claims management companies deliver a better level of service than others – the industry is so new that the most reputable companies have not been identified yet – issues such as speed of service, responsiveness, cost and most importantly, success rate will determine the best companies to appoint as your agent
6. You have the power to choose which company you use, but it can be very confusing as there are so many of them.
7. Unenforceable agreement Comparison sites offer you FREE, unbiased information to guide you – suggestions as to what to look for and which questions you should ask your credit claims management company.

What Can YOU Claim For As Potential Unenforceable Agreements?

The type of lending that could be unenforceable credit agreements and are open to what might be called “Financial Claims Compensation” is shown below.
Credit Cards
Car Finance Loans
Secured and unsecured loans
Store Cards
Payment Protection Insurance (PPI)
Mortgages

It should be pointed out that this is NOT the same as any of the following: debt management, an IVA or bankruptcy. Your credit finance agreements are audited to see if they comply with the 1974 Consumer Credit Act. There are a number of reasons why they might not comply and therefore qualify as unenforceable credit agreements. It is a little bit like the idea of mis-sold endowments, which hit the headlines a few years ago, but there is more to it than just mis-selling. Your credit cards and loans could be completely written off!

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