CreditCards Blog

Does anyone know about this at all? there are companies out there who say that if your consumer credit agreement is dated before april 07 and is not completely correct you can get companies to take up legal action for you and get a full refund of your credit balance and often compensation

waste of time/money , all stuff you can do for free (be aware that a couple just lost a court case with costs of 100,000 doing this)

http://www.oft.gov.uk/news/press/2008/consumeralert

Claims regulator and OFT warn consumers about risks of being misled over the enforceability of consumer credit agreements

MoJ/OFT Consumer alert 21 August 2008

The Claims Management Regulator at the Ministry of Justice and the Office or Fair Trading (OFT) are warning consumers to think carefully before responding to businesses claiming that they can arrange for outstanding balances under loan, credit card and other consumer credit agreements to be written off and secure compensation.

Consumers are advised to seek independent advice before using the services of businesses that offer to find ways to render consumer credit agreements unenforceable. Businesses can only provide claims services if they are authorised and regulated by the MOJ under the Compensation Act 2006. Such businesses may also need to hold an appropriate OFT consumer credit licence.

Consumers may be asked to pay large up-front fees, often up to 500, for the businesses to review their credit agreements. Some businesses are claiming that many of these agreements are completely unenforceable, that consumers can have debts cancelled and claim back thousands of pounds. Consumers should think very carefully before committing themselves to making claims and handing over hundreds of pounds in advance to do so, even where refunds may be promised if the claim is unsuccessful.

Consumers with specific debt problems may wish to contact their local Citizens Advice Bureau who will often be able to provide advice free of charge. Free, impartial advice can also be obtained from the contacts at the end of this alert.

Hi all

I am really surprised that Martin has not brought it to the attention of more people that some credit agreements are apparently unenforceable.

I know there are claims touts out there but according to the many posters on the Consumer Action Group forum, it is possible to make a claim yourself. It seems a bit too good to be true, but I'd be interested in ML's take on it. He must be aware of it, which means there must be a reason for not highlighting it.

Any thoughts?