Over the last financial quarter in the UK the financial doom and gloom has deepend and a different breed of debt related company has begun to grow very quickly .
This recent issues started as far back as the 1970’s when a Consumer Credit Act was drawn up, and within which was an agreement between the lender and the applicant} that Credit Card and Loan companies had to undertake when dealing with the people takin on the credit card or loan. These practices covered aspects such as Interest rates, cooling off periods, monthly payments etc. Basically these criteria HAD to be present on the credit application terms and conditions, even if it was to be in small print. Plus the applicant had to sign the application which had these T&C’s.
However, in the case of a lot of credit and loan companies they did not follow the credit agreement guidelines and as a result they have left themselves open to having what’s known as ‘Unenforceable Credit Agreements‘ or UCA.
What this means to person who took out a loan or got a credit card is that if they did so before April 2007 then they could ‘legally’ challenge the ‘validity’ of that initial agreement, and in plenty of cases can either have the debt(s) totally cleared or agree with the credit company to reduce it by a large amount.
In the light of this ‘blunder’ there are now a deluge of credit related organisations who will help applicants get their original credit contracts checked for UCA and in the process make themselves a lot of money. Nothing wrong with people wanting to know if they have Unenforceable Credit Agreement that as the applicant could potentially be saving themselves thousands which they could then spend elsewhere.
Most of these companies will charge an initial ‘investigation’ fee just to look at the applicant agreement to see if it’s Unenforceable while others will be work on the basis of not getting any payment if they don’t win your case. These companies for now have the full backing of the law after a few test cases in the courts but for now the so called ‘greedy’ credit card companies are being inundated with 1,000’s of requests for copies of applicant credit agreements as more and more people deep in debt are trying to have all their debts totalled wiped clean.