Unenforceable Loan Agreements - Ethical Approach to Debt Relief?

With the country heading deeper into a recession more people are struggling to make their unsecured debt payments. Consumers are looking for solutions to get rid of debt racked up on credit cards and loans and seeking financial stability. Some people turn to the usual debt solutions, i.e. IVA's, Debt Management and Trust Deeds which are great solutions to reduce hassle from creditors and get you one lower payment each month but more and more people are going down the 'Unenforceable' route to get rid of their debts.
Unenforceable Credit Agreements
If you have a loan or credit card taken out before April 2007 recent changes in the Consumer Credit Act means you may be eligible to have the balance written off entirely. The Consumer Credit Act was brought into play to regulate lending below £25,000 but recent changes to specific clauses in the act have left legal 'loopholes' which can be used to the consumer advantage. So do we consider UCA's to be an ethical approach to debt relief?
Are UCA's Ethical?
Now this all depends on your view of the unsecured lending industry. Although many people consider 'Unenforceable Credit Agreements' a scam as they are relatively new and haven't been around as long as other solutions such as Debt Management or IVA's, but you have to look at both sides of the coin. OK, so you are effectively using the law to your advantage to write off your credit card and loan balances but when we take into account how the banks and lending companies conduct their business do we consider their practices ethical?
For instance, PPI. (Payment Protection Insurance). How many times do you hear in the press of another lending company mis-selling PPI? Now, PPI is suppose to be a good thing because lets say, a scenario arises where you are in financial difficulty, this could be losing your job through redundancy or becoming ill and cannot work, then you are suppose to be protected by your PPI policy. But why do we here so many complaints of people not being able to claim as your policy suggests you can? Because time and time again PPI is being mis-sold. Consumers don't get told the full story when applying over the phone and advisors will tend to 'dress it up' and miss out all the things you should know in the terms and conditions. Now do we consider this ethical behaviour?
This is just one area we could look at. Bank charges are another. How did they get away with charging us so much for so long? £35 for going £0.10p overdrawn was ridiculous but how long did the bank charges saga go on for? Seemed like forever! But finally justice was served... So when you take into account how much money banks and lending companies make from us, the consumer, and how they conduct their business, do we still feel Unenforceable Credit Agreements are unethical?
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