Do You Have an Unenforceable Credit Agreement?

When the Consumer Credit Act of 1974 was amended in 2006 to keep up with the advances in consumer protection that has been the trend in recent years, a loophole was spotted in the Act which meant that lots of credit agreements were unenforceable. Not just a few thousand, but probably millions of credit contracts were deemed unenforceable because of the nature of the content in the contract itself.
Actually this wasn't so much a loophole as a shift in the law, which recognized that lenders were becoming lazy in what they were showing to their customers. Banks, in particular, were perceived as too greedy to bother to provide people with what were called the prescribed terms. The upshot was that if any contract did not contain these prescribed terms and was drafted before April 6th 2007 then it was deemed an unenforceable credit agreement. The debt still existed, in the sense that it could not be written off in most cases, and usually remained on a person's credit history for the normal time. But the collection of that debt could not be enforced, even by a judge in a court.
But what does that mean to any ordinary person who wants to take advantage of this? Well, firstly one has to ask the lender for a true copy of the original contract, and this must be shown within a certain time period, or the lender is in breach of the law. Furthermore, the document must contain items such as the term of the loan, the true APR and certain other details, and it must be signed. If any of these things are omitted then it is said to be unenforceable.
There are services which can check this for people. Usually a fee will be charged for this. There is also an option for people to do this themselves, though not everyone is confident about this and would rather the matter was handed over to an expert or a lawyer. If the unenforceable credit agreement is uncovered then there is no obligation to pay it. This is especially useful if the account has been sold to a debt purchasing company (or debt collection firm) as they buy delinquent debts in bulk and rarely care about the paperwork. Seven out of ten such contracts will no longer exist.
Visit the Unenforceable Credit Agreements site and see if you can save a small fortune by identifying those niggling debts that you no longer have to pay!
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