Unenforceable Credit Agreement - An Overview

In the United Kingdom, it all comes down to the Consumer Credit Act of 1974 that clearly states how the terms of a credit agreement must be stated in a contract. You might get shocked to know that all the banks and financial institutions get customers to sign contracts which do not follow the terms as stated in the act and therefore, are liable to be declared unenforceable credit agreements.
The Consumer Credit Act of 1974 clearly states that the terms and conditions of the loan must be clearly written in the contract. This is something that most credit card companies have always avoided. If you have any credit cards, store cards, car loan or any other financial loan before April 2007 there is a probability to have the loan written off. However, before you think you can become debt free, you must find out if you have any unenforceable credit agreements. Some of the details that must be written in a credit agreement are:
- The total loan amount - The interest rate - Number of Installments - Due date of each installment - Signatures Of both the parties
If you did not sign an agreement and got a loan, or the terms of the loan were not clearly stated, the agreement can be deemed incomplete and non-applicable.
To find out if you have an unenforceable credit agreement, you need to look at the agreement that you have signed. The correct procedure for this is to write a request to the loan or card company and ask them to send you a 'true copy' of the loan agreement that you have signed with them. You must give the financial institutes twelve days to send you a 'true copy of the agreement. You have to give them another thirty days' time period to provide you with the copy. If they don't, you must report them to the Trading Standards in their area that they have committed an offense.
This, by no way means that you should stop paying off the loan or rush off to a solicitor. You must do your own homework first. Ask for copies of the credit card or loan agreement. Wait for the company to give you a reply. If they default then you may proceed.
A number of firms ask for an upfront payment to help you get your unenforceable debt written off. You must find a solicitor who is willing to work on a 'no win, no pay' basis. They will study the agreements that you have signed, and will write to the credit companies and will follow up on the case, until it is settled.
If you think you have any unenforceable debts, you must follow the proper procedure to get them written off. Even after they have been written off, you must get a copy of the letter stating the same. As this requires legal and financial expertise, make sure that you hire the right person to guide and assist you. You can also do it on your own without any help or get free help by looking at the Consumer Credit Act of 1974.
Simon P Jennings is a personal insurance consultant. To get more information about Unenforceable Credit Agreements you may contact him today.
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