A Look at the Illegal Credit Agreement Loophole

This supposedly works by using a loophole in the law that means that unless a credit card agreement follows a set of strict rules, then it is invalid and so cannot be implemented legally. The practical effect is that any money owed on accounts set up with one of these agreements cannot be collected, and so doesn't have to be repaid. There are plenty of agencies claiming that they are able to speedily and easily arrange for your debts to be declared unenforcable like this, but is this really true?

The first point to note is that only agreement documents arranged before April 2007 have any hope of being declared unenforceable under this tactic. If this condition is fulfilled, there are quite a few reasons why the agreement may be invalidated, including not being signed by both parties, the true costs of the finance not being distinctly shown, or copies of the original papers not being available on asking for them.

Specialist lawyers will inspect your credit agreement copies on your instruction to determine whether or not they are all legitimate. But here comes the catch: you normally need to pay a fee before someone will even look at your case, whether or not you have any chance at all of having your agreements declared invalid. If you have two, three or even more credit cards, this can make it an expensive and possibly unproductive exercise.

Also bear in mind that some less professional promoters of these services overstate the chances of success, which many unbiassed commentators say are not as high as they are being portraid.

So what's the upshot? Certainly ask your credit card issuers for original copies of your credit agreements and inspect them yourself, but before going ahead with anything else consult with a free debt advisor. If you suspect you might have a chance of success, then look for a company happy to work on a no win no fee basis, rather than spending money at the outset in the possibly useless hope of leaving your debt problems behind.

Article Source: http://freelegalinformation.info

Nicholas writes for Debt Advice UK where you can find out more on how to legally clear credit cards.