How to write off loans taken out before April 2007
Unenforceable credit agreements do not just apply to credit cards, it applies to loans too. If you have a loan taken out before April 2007 then there is a high possibility it is unenforceable. If this is proved then you may not have to make pay more repayments and the debt will effectively be written off.
What do you mean by ‘Unenforceable’?
For any credit agreement to be valid, whether it’s a loan or a credit card, they must contain ‘prescribed terms’ as set out in the Consumer Credit Act 1974. If some or all of these prescribed terms are missing then the credit agreement is invalid, meaning the lender cannot legally collect the money from you. If a lender tries to take you down the legal route and you end up in court, the court could not make an enforcement order on your debt for the lender as the agreement is invalid, hence rendering the contract ‘Unenforceable’.
There are a lot of loan and credit card agreements in circulation which were incorrectly drafted at the time of execution and subsequently do not contain all the ‘prescribed terms’. As long as the debt was taken out before April 2007 then there is a high possibility that you can prove the unenforceability of your agreement.
Why does it only apply to agreements before April 2007?
In 2006 the Consumer Credit Act was updated from the 1974 version to a revised 2006 version and subsequently the relevant sections were removed. This being section 75 which protects consumers from lenders who supply improperly drafted agreements. As 7th April was the start of the next financial year following the amendments, you can only prove unenforceability on agreements before this date.
How long does it take?
This is very specific to the circumstances of the case, i.e. who the lender is, how much was the credit agreement was for and when it was taken out. It could be anything from 8 weeks up to a year. Give us a call on 0800 043 2027 and we will put you in touch with the legal company who can give you a better overview of timescales.
Why does a legal company have to help me, Can I not do it myself?
Anyone can write to their lender and ask them to write off their debt but it will be highly likely that you claim will be rejected. Even if enter into correspondence with them, unless you have the legal experience you may soon become unstuck and if you push it to far and ed up in court, you may be left with a large legal bill to pay.
Our recommended solicitors are experienced in communicating with creditors at a legal level and know exactly what to look for in your credit agreement to prove its unenforceability. Not only that, we only recommend companies that do not charge any audit fees, which unlike some claims companies, will charge you an arm and a leg before you even know if you have a claim or not.
How can I see if my debts qualify?
Use our Contract Checker to see if the debts you have qualify to be challenged for unenforceability. If they do then we will also recommend the most suitable legal company to help you. |
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