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!

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