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Well over 50 million credit agreements are created in the UK every single year and according to sources over 25 million of those could be unenforceable by law! If the solicitor can help you with something like this, they claim that you can keep 100% of any final settlement plus interest. You will also get to keep any products, services or good purchased beforehand. The consumer credit act was first created to protect the UK consumers, however, the original terms that allows the consumer to be protected weren’t clear enough. In the years that followed the credit industry was given free rein with little resistance from consumers. In recent years these unclear terms have now been changed as a result of the Consumer Credit Act of 2006 which makes it 100% clear to all parties involved that consumers are allows to challenge a situtaion if they see it to be an unfair credit agreement.

These companies check and recheck that your current agreement complies with the terms defined in the original documents, this credit act still exists today to protect the rights of lenders and borrowers who are in contract with each other. So how does something like this work exactly? First things first, you have to find a company or website online that offers this kind of protection, then once you find the site I suggest you taking some time to read up on any information they may have on their website. Unfair credit agreements can be a complex thing and the process must be followed carefully. Check the “who we are” and the “how it works” section, also be sure to check the FAQ section for any questions you might have. Listed below are some of the steps the company may ask of you in order to make a claim:

Fill in the online claim form. They will ask questions such as; name, email, address, how many credit agreements of yours are outstanding, name of lender, etc.

The company will send you a claim pack that includes a letter of authority allowing said company and a solicitor to deal with your credit agreement provider.

They will need copies of your original credit agreement if you still have them.

Once they receive the above information they will evaluate the claim and either move on with the claim or if nothing has been “broken” they will let you know.

On settlement of your claim you keep 100% of settlement plus any interest.

The best thing about this process is that you will never have to talk directly to your creditors. The company that deals with all of this will have a solicitor or legal counsel talk to the creditors on your behalf. Personally, I like this idea because a lot of times credit companies try to strong hold you or use scare tactics in order to get you to do what they want. In this situation you won’t have to worry about any of that, it’s completely safe, legal, and protected.

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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.

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There are others who help clients on ‘no win, no fee’ basis. Therefore, it is up to you to decide, which route you want to take in hiring a solicitors firm. What the solicitors firm does is, write to your creditors. Then they wait for the stipulated period before moving to file your claim.

The second way of making a claim for unenforceable credit agreement is by handling the claim process yourself. If you have credit cards, store cards or have taken a loan, you must write to the company and ask them to send you the agreement that you have signed with them.

In most cases, you have filled out an application form and not signed an agreement. If you have signed an agreement and the interest rates that will be charged, the due dates of repayment are not clearly documented in the agreement, then you can make a claim. You will write to the company and inform them that the credit agreement is unenforceable. You will have to wait 2+12 days to get a reply.

In case you don’t get a reply after fourteen days, you will have to wait a month further. In the meantime, you can send a reminder to the company. After the month has passed, you will write to the company and inform them that you are filing a claim in their area’s office of fair-trading. Print your name on the letters that you send to the companies, but don’t sign them.

You are likely to get a refund before you actually file a claim. Most companies know that they will loose and agree to a settlement. You may need some help working out what you can claim. Therefore, you can get a friend or an accountant to help you. You can get copies written by people to companies on the internet.

There are forums and blog sites from where you can get help. A large number of people are claiming for refunds on unenforceable credit agreement. When you start writing to the company and making your claim, don’t stop your payments. This can have an adverse affect on your claim. You can repay the loan amount, but do not pay the interest.

Therefore, it is really up to you to choose how you want to go about claiming for unenforceable credit agreement. If you choose a firm to help you, they follow the same process as has been explained. However, it’s really your decision. You can also get help from someone who has filed a claim or received a settlement.

The office of fair-trading has done a lot in protecting people from having to pay interest rates that they never signed an agreement.

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Basically, the act states that credit agreements must be set out in a particular way and to contain certain information, for instance the APR must be included in credit agreements and pre-contract information and also notification to the borrower of any variation of an agreement.

What has recently become apparent and successfully challenged, is that some (this figure has been widely speculated to be 70% but there is no easy way of knowing) of the agreements did not conform to the act and are therefore legally unenforceable. There is now a widely used term of Unenforceable Credit Agreements that refer to these potential unlawful agreements.

What this means for the borrower or you, is that under normal circumstances if a borrower defaults on a loan repayment or credit card, then the lender can take the person to court to reclaim the outstanding balances, but if the agreement between the lender and the borrower is unenforceable then the court cannot rule in favor of the lender and force the borrower to repay the balance.

In several reported instances, the lender is aware of this and does not actually take the borrower to court as they already know they would not win so to save costs (and probably publicity), they cancel the debt and write it off.

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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.

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A Payday Loan can assist you in this situation with short term loans of between £80 and £400.

Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.

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A Home Improvement Loan can help you with a new kitchen, bathroom, extension, loft conversion, conservatory, landscaping your garden or new furniture. You can even use it on non-house expenditure like a new car or repaying credit card or other debts.

Home Owner Loan

A Home Owner Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home Owner loan. The loan can be used for any purpose, and is available to anyone who owns their home. Home owner loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation. With a Home Owner Loan you can borrow from £5,000 to £75,000.

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Secured personal loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years.

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The amount you are able to borrow can start from as little as £500 and go up to £25,000. The repayment period will range from anywhere between six months and ten years. An Unsecured personal loan can be used for almost anything – a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.

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Cash Loan

A Cash Loan can assist you in this situation with short term loans of between £80 and £400.

Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a Cash Loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.

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