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Credit Agreement

Do You Have A Flawed Credit Agreement?
If So, You May Not Have To Pay The Loan Back.

There has been some news in the press of late about how it may be possible to make a financial claim against the bank who you have a credit card with, due to the potential ‘unenforceability of the credit agreement. If successful, this can result having the current outstanding debt of the credit card completely cleared. What most consumers don’t yet fully understand is how it is possible to make a financial claim such as this.

The key lies in the credit agreement that you first signed when you took out your credit card. In order to find out if your credit agreement may be flawed and therefore, potentially ‘unenforceable’ by the lender, is to have it correctly evaluated - which is why it is important to seek out a reputable financial claims company who has a panel of solicitors experienced in the Consumer Credit Act. Any credit agreement signed by a consumer prior to the 6th April, 2007, is governed by the Consumer Credit Act of 1974 and must comply with its regulations.

They will be able to communicate directly with your lender and obtain a true copy of the original credit agreement you signed when you first took out your credit card. Once this is obtained, only then can their solicitors fully evaluate your credit agreement. If they are able to identify breaches of the prescribed terms within the credit agreement, and believe you have a valid case, only then will they make a financial claim on your behalf.

Many people mistakenly believe that making a financial claim involves a financial process. This is not the case. To make a legitimate claim, the credit agreement must be put through a legal process. Although many financial claims are resolved in the consumer’s favour within six months, some cases do end up in court. This happened in the north west of England recently when a judge found in favour of a couple when he declared the credit agreement they signed with their lender was “irredeemably unenforceable”. This meant they didn’t have to pay back the outstanding balance of over £17,000.

The goal of any financial claim against a credit card provider is to have the outstanding balance completely written off. Although it is not impossible to achieve this by yourself, it is a lengthy and complicated process, and one that really requires the experience and expertise of a legitimate financial claims company that is authorized by the Ministry of Justice. Their goal is to ensure they follow the correct procedures in order to retrieve a true copy of your original credit agreement from your lender. There is a lawful process that needs to be adhered to when requesting a copy of your original credit agreement with regards to the information being released under the Data Protection Act. There is also a recognized time period that the lender must respond to the request within and provide a true, legible copy of your credit agreement.

Whether the outcome is the lender complies with the request and discloses a copy of the credit agreement in the allocated time frame, or refuses, or is unable to do so, it is imperative your chosen financial claims representative has the legal team in place to proceed with the financial claim process. As long as a copy of your credit agreement is supplied by your lender, a thorough and accurate evaluation or ‘Audit’ then needs to be carried out by an experienced solicitor.

Any credit agreement contains prescribed terms, which need be adhered to by both the lender and the consumer. A full “Audit’ carried out by a Solicitor experienced in the Consumer Credit Act of 1974, will be able to identify if all the prescribed terms have been included in the credit agreement, and if any breaches have occurred.

Providing the correct procedure is followed when requesting a true copy of the credit agreement, the lender has to supply it. However, should the lender refuse or be unable to provide a true copy of the credit agreement, then the Solicitor will proceed the legal process appropriate to the lack of disclosure.

Another vital component to maximize the success of any financial claim is ensuring you choose a financial claims management firm who has After The Event Insurance in place. This means that you, the consumer, are protected on a ‘No Win No Fee’ agreement with regard to legal fees incurred by either party’s legal team. An underwriter will only agree to provide adequate insurance cover if they believe you have a legitimate financial claim, so it is imperative that an established and highly experienced legal team evaluate your credit agreement thoroughly.

Consumers who make a financial claim against their credit card lender are not taking advantage of a legal ‘loophole’ – it is their legal right. The credit agreement is a legally binding contract for both parties.

Debt Clear Solutions is an established financial claims management company that can provide all of the components necessary to maximise success for their clients’ financial claims. In partnership with a major city law firm, plus a Barrister who is an expert in Consumer Credit Law to advise on individual cases, where required, Debt Clear Solutions is able to provide the highest quality of legal expertise available.

Debt Clear Solutions also has After The Event Insurance cover in place with one of the largest insurance companies in the UK to ensure they can pursue the legal process necessary, on behalf of their clients, on a ‘No Win No Fee’ basis.

To speak directly with one of their dedicated Claims Specialists, call Debt Clear Solutions today on 0208 123 9524

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