I have had my credit card audited by a firm of Solicitors and found to be un-enforceable.

This was confirmed in writing by the lender.

My partner is currently going down these route with her car finance, she has been doing this through a claims company they have been very efficient and helpful. The agreement has come back from the solicitors where they have found breaches of the consumer credit act, meaning the debt can be ruled unenforceable. I'll keep this post updated.

It's been said before - but it's always worth repeating. The fact that these debts may become unenforceable in a court does not mean that the debt is simply written off.

If you think for a second, that there will not be record of this debt somewhere, to make sure that the borrowers who have discovered this legal 'loophole' can simply get into further debt, then I think you need a wake up call.

If you have managed to legally 'avoid' paying a debt, which you took out for yourself, and the Company lent you in good faith, then all you have done in managed to find a way of getting out of a promise to pay back the debt you borrowed. And made it more expensive and difficult for others who need to borrow.

Good luck.

I think it's high time the mods of this site did something about this situation.

Can they not place a permanent sticky on the money board, explaining that debts can never be "written off", they can only be rendered unenforceable. Even then, the inherent risks might not be worth it on an individual basis.

I think a sticky should be put up explaining to newcomers that debts cannot, and never will be, written off. It should also explain that you should never put up a rip off fee to morally dubious "companies" claiming this.

Quote from the BBC news article about a successful write off of debts:

http://news.bbc.co.uk/1/hi/business/8282264.stm

The claims management industry which has emerged in the past few years has been highly controversial.

Many firms advertise in newspapers and on television, encouraging people to come forward to write off their debts.

This year the authorities, such as the Office of Fair Trading (OFT), Ministry of Justice (which regulates claims management firms) and the Solicitors Regulation Authority, have warned firms not to make exaggerated claims about their ability to get debts written off because of apparent technical errors in the lenders' paperwork.

:)

There are cases when debts can be written off but these are by the lenders themselves, or by a court.

There is no other way, and neither is simple or straightforward.

This case in the news only last week between MBNA and an individual, where the judge wrote off the debt due to the strong misselling of PPI by MBNA and non disclosure of commission.

No one can guarantee this outcome, only the lenders or the judge can make a decision to write off the debt.

Sparky.

Ive heard about some of these companys that will write your debt off as before April 2007 some important wording was missed out of loan agreements, which means that some loans can be written off.

Has anyone heard of anything good or bad about these companys, as I have £15k outstanding Id love to get rid of!

moomin21:

it works best if you actually bother to read what Sparky says in his post, instead of just wandering in and making comments, that have already been addressed.

If the loan agreement was drafted before 06/04/2007 and was below £25,000 it falls under the consumer credit act 1974. The Act lays downa schedule of what is called prescribed terms. There is a set for each type of loan including credit cards. Should your lender not comply with them the agreement will be unenforceable.

An example ia APR if the actual APR of an agreement is different from that stated on your loan agreement it gives may give the lender an unfair advantage. The consequence of which is losing the right to enforce the loan. The case of Wilson V First Party Trust established if the prescribed terms is breached the loan cannot be enforced by the bank.

Note: This post has been moderated. Please ensure you read the moneysupermarket.com Community Standards and Terms of Service before posting. Thanks

Yes I have been told the same regarding the 1974 act. Nice to have more detailed posts. I'm willing to give it a go as its refundable and the solicitors will not take forward if they feel it is not winable. I would beware of Cartel though.They are a reputable firm in so much as they are legitimate and will not disappear with your money. However I did in fact once work for them in the 'remortgage your endowment' days. They do what they offer to do but they charge a lot for the privilege for what in essence yuo can arrange your self with a solicitor. Other firms offer one off payments rather than having to pay a percentage of the money cleared. I will keep posting as to how I get on but it may take upto 12 months. I am in no rush.

As for the 'do-gooders' on here. Not all people are financially savvy. Therefore as I see it when you take a loan from a reputable large multi-national conmpany you expect that they do things absolutely to the letter of the law. Therefore if they are in breach of codes of law it is their own fault. They can afford to pay for the very best solicitors so as far as I am concerned there is no excuse. They, in most cases were trying to pull the wool over consumers eyes. They will only learn the hard way. I am amazed that in todays climate people still have sympathy to the financial sector when they were not showing 'good fatih' as others suggest. Were endowments, PPI etc all sold in good faith, I think not!!