Over the last financial quarter in the UK the financial doom and gloom has deepend and a different breed of debt related company has emerged very strongly .
It all started back in 1974 when a Consumer Credit Act was drawn up, and within which was an agreement between the lender and the applicant} that loan and credit card organisations had to undertake when dealing with the applicant. 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 acknowledge these T&C’s by signing the agreement too.
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 loads of companies who will help applicants get their Credit Agreement contracts nulled and in the process make a lot of people previously deep in debt very happy. Nothing wrong with people wanting to know if they have Unenforceable Credit Agreement that as the applicant will in some cases be able to save ten thousand pounds plus, in credit or loan debts which they could then spend elsewhere.
Most of these companies will charge an initial ‘investigation’ fee just to look at the credit/loan contract to see if it’s if it meets the UCA validation criteria and 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’ loan and credit organisations are being inundated with 1,000’s of requests for copies of original credit or loan documents as more and more desperate people are trying to have all their debts totalled wiped clean.