| Your credit card agreements
could be unenforceable – walk away
from your debts now ...
HOW COULD THIS BE TRUE?
It is believed that up to an incredible 70% of credit
card agreements are now unenforceable. That is why some
credit card companies are urging their clients to take
out new agreements.
Consumer credit law states that if personal agreements
do not contain certain provisions, they are unenforceable.
This means that the lender will not be able to recover
the debt, resulting in the debts being wiped clean with
no adverse impact on the borrower’s credit rating.
Your agreement is unenforceable
Let us look at the example of credit cards. If you have
entered into a credit card agreement before 6th April
2007 and have an outstanding balance on your card, the
debt could be completely unenforceable because:
• The card company is unable to supply you with
a true copy of the original signed agreement
• The agreement does not contain all the provisions
that are laid down by the law
Your debt could be legally reduced
If your card company has levied illegal, unfair, or
excessive charges or penalties against you, it is likely
that you will be able to have these charges removed,
thus reducing the amount you owe on the card, or even
eliminating the debt completely.
Your debt could be legally compromised
Because of the difficulties, both practical and legal,
faced by card companies in collecting outstanding credit
card debts, the companies are often willing to compromise
the debt, that is, to accept in full and final settlement
an amount less than the total debt due.
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