Writing Off Debt FAQs
- Why can debts before April 2007 be written off?
- Is this just a loophole?
- What kinds of errors are found in agreements?
- So what do I need to do?
- Who will take my case?
- What will it cost me?
Why can debts before April 2007 be written off?
Debts of £25,000 and less taken out before April 6th 2007 are covered by the Consumer credit act of 1974. The legislation states that contracts must have certain prescribed terms. Many of the lending institutions didn’t follow the law precisely, which has gotten them into this mess. Many contracts are unenforceable because the initial contract you signed didn’t comply with the law.
Is this just a loophole?
This is not a loophole. The banks in many cases did not follow the law. They broke the law when they sold you the loan or credit card. The consumer credit act 1974 clearly lays out the responsibilities that they have when entering into an agreement with consumers.
What kinds of errors are found in agreements?
Your agreements legally must contain certain information. For example the APR rate must be correct, the amount of credit must be stated, or any broker fees must be disclosed. Of course there are many more things that must be in a legal credit agreement, but those are some of the main ones. If those things are wrong or others, then you will probably have been paying too much money for your loans.
So what do I need to do?
We will send you some forms to fill out. They are authority forms for us to be able to get the information we need and to process your case. A questionnaire is included for each debt you want to write off. This will help the solicitor to understand the case.
We also need a cheque for £10, made payable to each creditor (the original creditor). This is 1 cheque for each debt you want us to look at. This money is not for us. It is the money that your creditor will charge you for sending the information our solicitors need.
Who will take my case?
Your agreements legally must contain certain information. For example the APR rate must be correct, the amount of credit must be stated, or any broker fees must be disclosed. Of course there are many more things that must be in a legal credit agreement, but those are some of the main ones. If those things are wrong or others, then you will probably have been paying too much money for your loans.
What will it cost me?
It will initially cost £10 for each debt for us to get the information we need. This is charged by the creditor, and this money does not go to us.
We will get the information and arrange for our solicitor to assess the documents for FREE.
If the solicitor feels that you don’t have a case, there is no charge whatsoever.
If there is a case and the solicitor wants to commence legal proceedings against your lender, there is our administration charge of £115 per agreement.
If you decide that you don’t want to take the case forward, of course we won’t charge you.
For debts of £5,000 or above, if we successfully write off the debt, there is still nothing to pay. We work on a ‘no win no fee’ basis. We charge or costs to the other side. All it will cost is £115 (plus the £10 lender fee) to write off debts of £5,000 to £25,000. We feel this is an amazing offer.
For debts between £1,500 and £4,999, if we successfully write off the debt, there is a charge of 15% of the debt we have written off. This is because for debts below £5,000 our solicitors have to go to the ‘small claims court’, where they can’t get their fees back. We wish they didn’t have to charge you anything on these small debts, but it is unavoidable.