Is your credit card agreement unenforceable?
As many people are coming to understand if a credit card was taken out prior to the 6th April 2007 there is a very significant chance indeed that it is an unlawful credit card agreement and it is possible to write off the debt. The Consumer Credit Act 1974 has a fundamental requirement that any agreement must comply with certain prescribed terms.
Examples of Unenforceable Credit Card Agreements
• The lender doesn't have a copy of the agreement.
• The amount of credit (or credit limit) hasn't been stated on the agreement.
• The interest calculation is incorrect.
• The agreement hasn't been signed by both the debtor and creditor.
• An increased credit limit has been provided on a credit card agreement without it being requested.
• The credit charges are not deemed to be fair.
• No rate of APR is displayed.
• There is no mention of any 'cooling off' period.
What will be the result if the credit agreement is lost?
Sending the lender a S77 request entitles the borrower to get a copy of the credit card agreement. It is necessary to include a postal order for £1 as required by the act.
The lender has to send a copy of the agreement within 12 days failing which it is in default. If the lender cannot provide a copy of the actual, signed credit agreement they aren't in a position to enforce the debt as it is an illegal credit card agreement. It is then possible to require them to remove data they hold about you from their records and those held by credit agencies.
Will This Have a Negative Impact on Credit Ratings?
Provided payments are kept up during the legal challenge, no credit rating will be affected. Those who have adverse credit will actually improve their credit rating. This is because the debt was deemed to have never technically existed so no adverse credit entries can be registered for a debt that doesn't exist. These entries can be removed when a case is successful.
How Long Will it be Before the Outcome?
The duration of any case does vary depending upon the institution and complexity of the case. Most cases are usually settled within 6 months, sometimes a lot sooner.
What Happens if the Unlawful Credit Card Agreement Case is Successful?
If it is decided that there is an illegal credit agreement, it is possible that the entire debt will be written off. This will mean that the balance is completely wiped and will not show on credit reference agency records.
What About Credit Card Debt that Cannot be Written Off?
For more recent credit card debts that cannot be written off, it is worthwhile considering a Debt Management Plan or even an Individual Voluntary Arrangement (IVA). It is imperative the serious debt problems are dealt with as efficiently as possible.
So it is possible to get debt written off yourself but most companies will only take seriously a threat issued by a solicitor.
IF YOU HAVE A CREDIT CARD AND YOU THINK THAT YOU MAY BENEFIT FROM A REVIEW OF THIS CARD AND WHETHER IT COMPLIES WITH THE CONSUMER CREDIT ACT 1974, PLEASE CONTACT THIS FIRM WITHOUT FURTHER DELAY.
Tuesday, 9 December 2008
Friday, 28 November 2008
Credit Cards Written Off
Are your loans and credit cards unenforceable?
We can get you on the road to reclaim.
You might be abe to stop paying back your credit agreements and be due a refund of all or part of the payments you have made.
I myself have had £50,000 worth of credit card debt written off!
Help With Debt can check that your credit agreements comply with the Consumer Credit Act 1974.
WHY?
If a credit agreement does not comply with the Consumer Credit Act 1974 it may be deemed to be unenforceable.
Our solicitors can then act on your behalf to attempt to:
Write off any outstanding balance
Reclaim previous payments of interest and charges
We can audit Credit Agreements of up to £25,000 with a minimum outstanding balance of £5,000 for loans and £500 for credit cards including:-
Credit Cards
Secured Loans
Unsecured Loans
Hire Purchase
Consolidated Loans
Car Loans/Finance
Who Will Qualify?
Any individual in a credit agreement that is regulated by the Consumer Credit Act 1074
The Agreement must pre-date 6th April 2007
Loans to be between £5,000 and £25,000 and be on-going
Credit cards must have a limit of £25,000 and have a balance outstanding of £1,000
So do you have any agreements that we can audit for you? You could be within weeks of writing off thousands of pounds
Thursday, 27 November 2008
A new Start. Fresh debt advice
This month has taught me a valuable, but ultimately disappointing lesson. After coming up with the idea for a debt solutions business based upon the right advice at the right time and indeed setting up the same with two contacts I find myself engineered out of the business.
I was told earlier this month by my two erstwhile partners that they no longer wished to pursue the business. I was encouraged to strike out and set up on my own.
This I did as the debt solutions company to me was something I believed in and not a means to an end.
How naive I was, no sooner was I out the door and transferring my shares, than my ex partners began ring fencing the business, and tying in the contacts that I had brought in.
No matter, I will prevail. I will re-establish what I do, re configure all my templates and come back stronger and wiser.
If you read this and would like to help, send those in debt my way.
I was told earlier this month by my two erstwhile partners that they no longer wished to pursue the business. I was encouraged to strike out and set up on my own.
This I did as the debt solutions company to me was something I believed in and not a means to an end.
How naive I was, no sooner was I out the door and transferring my shares, than my ex partners began ring fencing the business, and tying in the contacts that I had brought in.
No matter, I will prevail. I will re-establish what I do, re configure all my templates and come back stronger and wiser.
If you read this and would like to help, send those in debt my way.
Thursday, 30 October 2008
Eunoia and Debt
Eunoia is the shortest English word containing all five main vowels. It comes from the Greek word euvoia, which means well mind. It could also mean “beautiful thinking”.
What has this got to do with debts and debt relief? Well I think that we all need some beautiful thinking, or positive movement of mind to try to unshackle our thoughts from impending doom and destruction that seems to be pre-eminent when ever one turns on the TV or radio.
The media are obsessed in this 24 hour instant news world with reporting every nuance and twist and turn of monetary machinations. If we dwell too long we will find that we spiral ourselves into a tumult of despair and foreboding.
In this Autumnal snap of Arctic air, take time today to stand in the wind and breathe deeply. Fill your lungs with cold, life giving breath, empty your mind of grim thoughts and resolve to change your life for the better.
What better way to do that than to pick up the phone and speak to a Help With Debt Advisor. Help With Debt and Eunoia, a perfect combination.
What has this got to do with debts and debt relief? Well I think that we all need some beautiful thinking, or positive movement of mind to try to unshackle our thoughts from impending doom and destruction that seems to be pre-eminent when ever one turns on the TV or radio.
The media are obsessed in this 24 hour instant news world with reporting every nuance and twist and turn of monetary machinations. If we dwell too long we will find that we spiral ourselves into a tumult of despair and foreboding.
In this Autumnal snap of Arctic air, take time today to stand in the wind and breathe deeply. Fill your lungs with cold, life giving breath, empty your mind of grim thoughts and resolve to change your life for the better.
What better way to do that than to pick up the phone and speak to a Help With Debt Advisor. Help With Debt and Eunoia, a perfect combination.
Tuesday, 21 October 2008
Write Off Credit Card Debt
It is possible to utilise a debt solution that doesn'y actually involve spending a penny repaying your creditors. I am able to utilise the provisions of the Consumer Credit Act 1974, to legitimately help people who may owe thousands of pounds turn around to their credit card company and say I'm not paying you a penny. The credit card companies can do nothing about it an dhave to write the debt off.
It works even better with Debt Purchasers, who whilst they may purchase the right to pursue the debt, often forget to take delivery of the documents evidencing the debt. Silly Billys.
Do you want to know how to do it?
Drop me a comment and I'll tell you how.
It works even better with Debt Purchasers, who whilst they may purchase the right to pursue the debt, often forget to take delivery of the documents evidencing the debt. Silly Billys.
Do you want to know how to do it?
Drop me a comment and I'll tell you how.
Thursday, 16 October 2008
Three Trillion invested in markets and still no bank lending
Governments around the globe have invested Three Trillion in bailing out banks and underwriting their trading with each other. Central Banks in Europe, Asia and America have pumped many billions more into money markets to allow banks to lend to each other, combined with underlying Government guarantees of interbank trading. There has been a co-ordinated global reduction in interest rates by 0.5%, and may be more to follow.
The net result of this has been an initial rallying of stock markets around the globe and rises in the value of some bank stock.
What has not happened is a movement in banks trading with each other, or the passing on of that 0.5% interest rate cut.
Banks are simply not interested in lending at present. This could cause catastophic harm to world economies, which is why we are at present seeing stock markets around the globe crashing. The Nikkei was this morning down 11%, its biggest drop in history. London has opened sharply slower this morning and it is expected that the Dow will be marked down later when trading starts in New York.
So what more can be done. Well I hate to crow but I did forewarn of this last week. Central banks and Governments must now do more, and if that is not enough they must do more again. The Central Banks must try to find a link between their interest rates and the global bankers willingness to lend to each other. Without credit finance being made available to homeowners and businesses, world recession which we are in , will be deeper and harder than needs be neccessary, and indeed could escalate into a global depression.
It is a struggle that the Central Banks cannot afford to lose, but what this may cost yet, nobody knows.
The net result of this has been an initial rallying of stock markets around the globe and rises in the value of some bank stock.
What has not happened is a movement in banks trading with each other, or the passing on of that 0.5% interest rate cut.
Banks are simply not interested in lending at present. This could cause catastophic harm to world economies, which is why we are at present seeing stock markets around the globe crashing. The Nikkei was this morning down 11%, its biggest drop in history. London has opened sharply slower this morning and it is expected that the Dow will be marked down later when trading starts in New York.
So what more can be done. Well I hate to crow but I did forewarn of this last week. Central banks and Governments must now do more, and if that is not enough they must do more again. The Central Banks must try to find a link between their interest rates and the global bankers willingness to lend to each other. Without credit finance being made available to homeowners and businesses, world recession which we are in , will be deeper and harder than needs be neccessary, and indeed could escalate into a global depression.
It is a struggle that the Central Banks cannot afford to lose, but what this may cost yet, nobody knows.
Wednesday, 15 October 2008
How a pre-pack administration can save a business
How a Pre-pack Administration can save a business.
If you have a business that is facing great creditor pressure, including court summonses or statutory demands or visits from bailiffs, then it is possible to save a decent business (but not the Limited company shell) by selling that business to a "newco" possibly set up by the existing directors.
Following are the steps that need to be taken to place a distressed business into a pre-packed solution
Step 1:
A Company would take advice from an insolvency practitioner. We can recommend one if required. Directors may be worried about wrongful trading, which is continuing to trade when they realise that the company is insolvent and may not be able to trade out of that insolvency, thereby possibly incurring personal liability.
This advice should be thorough and a report prepared in writing for the board and possibly for the bank. All options such as company voluntary arrangement, trade sale, refinancing, aadministration, creditors voluntary liquidation and pre-pack administration should be explored.
If there are good reasons for a pre-pack the option needs to be considered by the directors. If it is decided by the Board to enter a pre-pack administration a board meeting should be held and a resolution passed stating the company's board will consider the option in greater detail. It's likely the resolution will include the appointment of formal advisors either insolvency practitioners (IP), turnaround practitioners or accountants to act as advisors to the board.
Step 2:
If the plan is to sell the business (not the company!) to a "newco" then a business plan for the newco must be drawn up. This would include a detailed profit and loss forecast, cashflow forecasts and balance sheet forecasts. This will give an indication of working capital requirements. The proposed administrator will require this as evidence that the new company can be viable.
If the plan is to sell to an existing trading company, the IP will require copies of management information and accounts from that buyer. Again this is necessary to ensure the purchaser is viable and can afford any payments for the assets being acquired.
Step 3: - Compliance issues.
Under insolvency practitioners guidelines (known as SIPS) the IP must market the business. Often this requires sending sales memos to a database of potential buyers the IP may hold, an advert on his website or a local or national newspaper. If he gets no interest or no indication of interest he can then sell to the newco or third party.If there is a lot of interest and offers, beware your business could fall into a competitors hands.
The IP will also get formal valuations of the assets, intellectual property and or goodwill of the insolvent company. Any offer needs to be commensurate with valuations.
At this stage if the directors are planning to buy the business they must be careful. Directors of a failing company have a fiduciary duty of care to the company and its creditors. Starting "newco" can put that at risk of conflict of interest. It's likely that separate legal advice will need to be taken in relation to both companies.
The IP will be unable to charge costs for pre-plan work but he may well charge a consultancy fee together with disbursements which may include those fees of other external professional advisors.
Step 4: - Raising finance
You will need finance to fund the acquisition of the assets and business. There are many specialist lenders who can provide: factoring, asset based lending, loans and bank facilities. But this is likely to be difficult to raise and will probably require personal guarantees from the directors.
The detailed plans that you have prepared will enable those funders to make a decision on whether or not to support the new venture.
Step 5
If you can raise the finance, the proposed administrator has satisfied his compliance requirements and the board of newco believe they can fund the acquisition then it will be possible to move ahead.
A contract will be drawn up that appoints the proposed administrator formally. He will then initiate the pre-pack administration by contacting any floating charge holders like banks or lenders with security. If they have no objections (and often they are involved in funding newco) then he can proceed.
Assuming all is approved then the administrator makes an application to Court stating his proposals. The business will be sold to a newco or third party almost immediately.
Summary
If you are interested in a pre-packaged administration you should seek proper advice, we can provide that advice and put you in touch with advisors we trust to smooth the process.
If you have a business that is facing great creditor pressure, including court summonses or statutory demands or visits from bailiffs, then it is possible to save a decent business (but not the Limited company shell) by selling that business to a "newco" possibly set up by the existing directors.
Following are the steps that need to be taken to place a distressed business into a pre-packed solution
Step 1:
A Company would take advice from an insolvency practitioner. We can recommend one if required. Directors may be worried about wrongful trading, which is continuing to trade when they realise that the company is insolvent and may not be able to trade out of that insolvency, thereby possibly incurring personal liability.
This advice should be thorough and a report prepared in writing for the board and possibly for the bank. All options such as company voluntary arrangement, trade sale, refinancing, aadministration, creditors voluntary liquidation and pre-pack administration should be explored.
If there are good reasons for a pre-pack the option needs to be considered by the directors. If it is decided by the Board to enter a pre-pack administration a board meeting should be held and a resolution passed stating the company's board will consider the option in greater detail. It's likely the resolution will include the appointment of formal advisors either insolvency practitioners (IP), turnaround practitioners or accountants to act as advisors to the board.
Step 2:
If the plan is to sell the business (not the company!) to a "newco" then a business plan for the newco must be drawn up. This would include a detailed profit and loss forecast, cashflow forecasts and balance sheet forecasts. This will give an indication of working capital requirements. The proposed administrator will require this as evidence that the new company can be viable.
If the plan is to sell to an existing trading company, the IP will require copies of management information and accounts from that buyer. Again this is necessary to ensure the purchaser is viable and can afford any payments for the assets being acquired.
Step 3: - Compliance issues.
Under insolvency practitioners guidelines (known as SIPS) the IP must market the business. Often this requires sending sales memos to a database of potential buyers the IP may hold, an advert on his website or a local or national newspaper. If he gets no interest or no indication of interest he can then sell to the newco or third party.If there is a lot of interest and offers, beware your business could fall into a competitors hands.
The IP will also get formal valuations of the assets, intellectual property and or goodwill of the insolvent company. Any offer needs to be commensurate with valuations.
At this stage if the directors are planning to buy the business they must be careful. Directors of a failing company have a fiduciary duty of care to the company and its creditors. Starting "newco" can put that at risk of conflict of interest. It's likely that separate legal advice will need to be taken in relation to both companies.
The IP will be unable to charge costs for pre-plan work but he may well charge a consultancy fee together with disbursements which may include those fees of other external professional advisors.
Step 4: - Raising finance
You will need finance to fund the acquisition of the assets and business. There are many specialist lenders who can provide: factoring, asset based lending, loans and bank facilities. But this is likely to be difficult to raise and will probably require personal guarantees from the directors.
The detailed plans that you have prepared will enable those funders to make a decision on whether or not to support the new venture.
Step 5
If you can raise the finance, the proposed administrator has satisfied his compliance requirements and the board of newco believe they can fund the acquisition then it will be possible to move ahead.
A contract will be drawn up that appoints the proposed administrator formally. He will then initiate the pre-pack administration by contacting any floating charge holders like banks or lenders with security. If they have no objections (and often they are involved in funding newco) then he can proceed.
Assuming all is approved then the administrator makes an application to Court stating his proposals. The business will be sold to a newco or third party almost immediately.
Summary
If you are interested in a pre-packaged administration you should seek proper advice, we can provide that advice and put you in touch with advisors we trust to smooth the process.
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