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Frequently Asked Questions
How does it work?
The Consumer Credit Act of 1974 sets out very stringent requirements that a lender must comply with when lending money. Credit agreements up to £25,000 and issued before 6th April 2007 can be challenged to determine if they comply with the terms of the Act. Many UK banks and lenders have not adhered to their legal obligations under the Act. This means that your credit agreements may be legally unenforceable. Recently, a high percentage of those agreements that have been challenged have been found to be unfair and unenforceable. The result is the debt cannot be enforced.
Which type of debts may be unenforceable?
Provided they were issued before 6th April 2007, secured or unsecured loans including consolidation loans, credit cards, store cards, and car loans/finance, up to £25,000.
How long does it take?
Your lender must produce a physical copy of of your agreement within a prescribed period of request. Once they have provided this, legal experts can determine its enforceability. This can take up to 42 days. Should it be found unenforceable in their opinion, your outstanding balance can be challenged without delay. The response times from lenders to requests for information that the debt cannot be enforced can vary. Typically 4-9 months should be allowed from the time the agreement is challenged.
How much does it cost?
A £99 fee is all you pay for legal experts to request a copy of your agreement from your lender. The information they receive back is then scrutinised by them and a decision is made as to the enforceability of the contents.
If your agreement is considered unenforceable, you may then instruct the legal experts to proceed to the next stage and commence challenging your debt, with the ultimate aim being to have the debt proved unenforceable. A fee is then payable amounting to 10% of the outstanding balance for balances of £10,000 and over. For balances of less than £10,000, a minimum charge of £999 per agreement applies.
It is possible for this fee to be paid in six equal instalments, approximately the equivalent of making six minimum payments on your card(s)/loan(s). The fee covers all legal costs associated with your claim and you only pay this if your agreement is determined unenforceable.
If I decide not to challenge my agreement, can I get my £99 back?
A refund is an option within 15 days of making your initial payment. However, an administration charge will be deducted for a cancellation against the £99 fee. Please advise immediately if you decide not to challenge your agreements.
What if I am already in Default?
Even if you are in default, your agreements can still be challenged and when proved to unenforceable, it can sometimes be possible for registered defaults to be removed. This service may incur an additional charge.
Is it legal?
Absolutely, 100% legitimate. If the banks and lenders do not follow the legislation, they are breaking the law. The law is used to protect YOU, the consumer. The banks and lenders, don't want the general public to become aware of this error.
Can I continue to use my credit card?
No. Once your agreement is in dispute, using your cards may affect the ability to successfully complete your claim.
Should I continue to make payments to my credit cards/loans?
You must continue making payments until your agreement is put into dispute. Once your challenge has been initiated, you can stop making payments. Legal experts will inform you when this is.
I am getting harassed by my creditors.
It is possible to stop creditor harassment as debt collection agencies will have to withdraw while the agreement is in dispute and will not contact you again if and when the debt is proved to be unforceable.
What happens if my lenders contact me after I start a claim?
Third party legal experts will deal directly with your lenders. This should stop them contacting you to discuss the debt. If they do, you should not answer any questions or get into a conversation. You should notify them that you have passed the matter over to legal experts and that any correspondence be put in writing to them. This action by your lender may be used against them to help win your case.
Are there any adverse repercussions?
No. It is likely, however, that the lender(s) will close any account associated with the disputed agreement. After the claim is resolved, it is possible to remove any derogatory information which could have been incorrectly placed on your credit file by your lender whilst the agreement is in dispute. (It is your responsibility to make your legal representatives aware of this)
Can I do this even if I have a bad credit history?
YES.
Can you help if my lender has a CCJ or Charging Order against me?
YES. If legal experts believe that the credit agreement on which the judgement or order is based is unenforceable, then the debt is put into dispute whilst challenging it's enforceability. As soon as the debt is put into dispute, all legal action against that debt is frozen immediately. This will give your legal representatives the time they need to build a claim against that credit agreement. It is possible to stop the CCJ or Charging Order and get it reversed by challenging the credit agreement on which it was based. This is an additional charge for this service.
Can I do this myself?
Yes you can. Contact your local Citizens Advise Bureau and they will advise you how to contact your lenders.
Do you offer debt advice?
NO. debtclearance4u is an independent sales agency and not a financial services company.
Call now on 01246 291941 to see if help is available.
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