I was listening to the radio a few days ago an heard an advert saying that if you took out a credit card before March 2007 you can legally write off all the debt on it due to a loophole.  If you have heard a similar advert and are considering trying to write off your credit card debt there’s a few things you need to know.

You are legally entitled to challenge any Consumer Credit agreement that was signed prior to 6th April 2007.  This is because there are flaws in the Consumer Credit Act 1974.  There are many companies on the Internet that will offer to do this for you but they can charge anywhere form £100 – £400 per credit card plus other fees.

You can actually do this process yourself for a lot less although it can be more daunting not having the proper guidance so for some people going with these companies may be better.  If you decide to go thing

alone the first thing you should do is send a request for your Consumer Credit Agreement.  You can send a request along with the statutory fee of £1. This must be a true copy of the original agreement between yourself and the credit card company.

write off credit card debtThe credit agreement must have both signatures and the prescribed terms on the same side of the same page.  The credit card company are obliged to supply you with the credit agreement within 12 working days.  If they fail to do so, the debt is now in dispute. Once the debt is in dispute, the credit card company are not allowed to chase you for repayment or mark your credit file with defaults. If they try and pass the debt onto a debt collection agency, they will be breaking OFT regulations.

Many creditors are sending what they call ‘reconstructed’ agreements. These are not the original agreements, just a document that they have drawn up to show you what they think your credit agreement should look like. They will then claim that this satisfies their obligation in response to your CCA request. In they eyes of the regulators, that is debatable and it leaves you in a bit of limbo. This doesn’t always mean they don’t have the original, it just seems that they don’t want you to know if they do or don’t.

You should also send a SAR.  A SAR is used to obtain all records about yourself from your credit card company that they are holding under the data protection act 1998.  When a company holds information about you they must register with the data commissioner and ensure that they adhere to the act. Under the Data Protection Act you may request all information held with the company.  The fee can be no more than £10.  If your credit card company fail to send you the information within 40 days you can report them to the to data commissioner.

Once you receive your credit agreement you should check the following to tell if it is enforceable?

* All the below criteria must be contained on one side of one single document.

* It must clearly state “Consumer credit agreement regulated by the consumer credit act 1974

* It must contain both the creditor & the debtor signatures.

* It must contain all the terms including repayment schedule, interest rates e.t.c.

Your agreement should also be clear and easily readable.  If it does not meet these criteria then your debt may not be enforceable.  You should be aware that credit card companies will do their best to make you pay the debt and this can prove daunting.  That’s why it may be best to go with a company that will act on your behalf.  If you can find a “no win, no fee” company, that’s all the better.

Popular searches for this article:

Tagged with: • •

Filed under: Credit Cards

Like this post? Subscribe to my RSS feed and get loads more!