Writing off debt - any lawyers around here?
Discussion
Family member has asked me ( because I am a " financial type" apparently ) about how he has heared that it may be possible for some loans and credit card debts established before 2007 to be written off.
By all accounts it is because of a change in legislation, which may effectively make the loan unenforceable.
I have not got a scooby doo what he is on about and I don't have much debt.
Anyone here any wiser?
By all accounts it is because of a change in legislation, which may effectively make the loan unenforceable.
I have not got a scooby doo what he is on about and I don't have much debt.
Anyone here any wiser?
THere are a number of companies that have sprung up to "clear your debts".
There is some confusion of what they can and can't do. They are promising alot, but as the process takes up to a year to complete they need not prove evidence of delivering on those promises just yet.
There are some fees involved with looking at these cases. (Think £500 for the first case then a couple of hundred for the follow ups.)
We have an agency with one of the providers, I'm not sure how confident I am that it has any merit though.
There is some confusion of what they can and can't do. They are promising alot, but as the process takes up to a year to complete they need not prove evidence of delivering on those promises just yet.
There are some fees involved with looking at these cases. (Think £500 for the first case then a couple of hundred for the follow ups.)
We have an agency with one of the providers, I'm not sure how confident I am that it has any merit though.
G'kar said:
therealpigdog said:
G'kar said:
It's the latest bandwagon for the ambulance chasers wanting to make a few quid off the feckless.
are you suggesting the banks are feckless?
On one hand I agree with what you said.
On the other the banks have known about the deficiencies in their credit agreemnts for a good many years.
They did nothing to sort those problems.
This may now be coming back to bite them.
As far as I understand these new style of adverts that have been appearing on daytime TV they are offerring to clear your debts in certain circumstances. However, you will totally destroy your credit rating for several (5+) years ahead and make it nigh on impossible to get a credit card, cheque card, loan, mortgage etc during that period.
Basically if you can't afford it don't buy it as a lot of people are now finding out.
Basically if you can't afford it don't buy it as a lot of people are now finding out.
Grey Ghost said:
As far as I understand these new style of adverts that have been appearing on daytime TV they are offerring to clear your debts in certain circumstances. However, you will totally destroy your credit rating for several (5+) years ahead and make it nigh on impossible to get a credit card, cheque card, loan, mortgage etc during that period.
Basically if you can't afford it don't buy it as a lot of people are now finding out.
See this is the odd thing, the firms are saying that this is one thing the lenders wont be in a position to do. Basically if you can't afford it don't buy it as a lot of people are now finding out.
ETA, but as I've said I've not as yet sen any evidence either way
Edited by scotal on Thursday 5th February 11:12
I think the title is a little misleading.
Maybe wiping out debt would be better.
Writing off debt is remove something from your bottom line, debt that is owed to you
eg removing something from your own accounts receivable.
A debt that you consider either uncollectable or worthless.
The wiping out of debt is these debt consolidation people.
The get high rate credit card debt and try to bargin for a better rate,or try for a reduced pay off figure, or pay them off with one loan at a reduced rate usually secured by property.
Maybe wiping out debt would be better.
Writing off debt is remove something from your bottom line, debt that is owed to you
eg removing something from your own accounts receivable.A debt that you consider either uncollectable or worthless.
The wiping out of debt is these debt consolidation people.
The get high rate credit card debt and try to bargin for a better rate,or try for a reduced pay off figure, or pay them off with one loan at a reduced rate usually secured by property.
I'm sure it was discussed on the business forum recently.
IIRC, there were rule about changing terms without a signature which were changed in 2007. If you have a CC from before that and they changed anything which you didn't sign for, such as an increased credit limit, they broke the rules. This makes the debt unenforcable, so you still owe but they cannot make you pay it, not even in court. Therefore they cannot do anything against your credit rating, no CCJ or whatever as no court will rule in their favour. After 6 years, the debt is null and void.
Doesn't work for mortgages, just for CCs and loans.
IIRC, there were rule about changing terms without a signature which were changed in 2007. If you have a CC from before that and they changed anything which you didn't sign for, such as an increased credit limit, they broke the rules. This makes the debt unenforcable, so you still owe but they cannot make you pay it, not even in court. Therefore they cannot do anything against your credit rating, no CCJ or whatever as no court will rule in their favour. After 6 years, the debt is null and void.
Doesn't work for mortgages, just for CCs and loans.
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