What is an Unenforceable Credit Agreement?

The Consumer Credit Act of 1974, which regulates consumer law and spending, gave borrowers many rights against the companies that loaned them the money. Unless the bank that you borrowed the money from followed explicit rules for loaning money, you may have an unenforceable credit agreement.
So what exactly is an unenforceable credit agreement? Put simply, it is an agreement that made between yourself and a bank for some type of credit that does not comply with the requirements of the Consumer Credit Act. There are many types of credit that are covered by this agreement, ranging from unsecured personal loans to automobile purchase loans. Secured loans and consolidation loans are covered as well, provided the amounts borrowed was under ¤25,000.
Although the credit laws changed in April of 2007, any credit agreement that was signed before still falls under the old laws. While the new laws make it a bit harder to claim something as unenforceable, the old laws are very specific and you may be able to get a court to decide that it is unenforceable if you go that route.
Also, some of the old agreements could only be enforced by the courts and if the courts decide that they had excessive interest, high charges or other deceptive practices, these cases could be simply struck from the court. That means the agreement is now unenforceable and you may no longer be obligated to pay this debt back anymore. You could continue to do this with all your debts that fall into this category, potentially enabling you to reduce or eliminate much of your debt.
While many people have thought of unenforceable credit agreements as too good to be true, there are thousands of people who have been successful in going to court and getting the judge to rule in their favor and clear their debt. In fact, many independent studies have shown that almost 8 out of 10 credit agreements before April of 2007 contain errors of some kind. While not all of those will invalidate the agreement, it is still an impressive number.
In short, unenforceable credit agreements could end up saving you thousands of pounds and possibly make your life a bit easier with less debt. If you feel that you may have an agreement like this, you owe it to yourself to take action to free up your life of the extra debt.
Find out now if you have an unenforceable credit agreement. Cancel your debt now!
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