Unenforceable Loans: How to Make the Best Use?
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Posted On :
Feb-19-2010
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Article Word Count :
525
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Some confusion regarding the Consumer Credit Act 1974 have made many of the agreements on loans before April 2007 unenforceable. What that actually means is that you may not have to pay back your loan as well. In fact, the agreements can contain certain errors that may well give this privilege to the borrowers and the type of loan can vary from personal loans, credit cards, car loan, overdraft and other forms as well.
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Some confusion regarding the Consumer Credit Act 1974 have made many of the agreements on loans before April 2007 unenforceable. What that actually means is that you may not have to pay back your loan as well. In fact, the agreements can contain certain errors that may well give this privilege to the borrowers and the type of loan can vary from personal loans, credit cards, car loan, overdraft and other forms as well.
In fact, the Consumer Credit Act of 1974 chalked out the strict requirements that must be met to be eligible to lend out money. As such these requirements must be fulfilled by the lending institutions such as credit card company and bank. According to the Act, the lending company has to produce regulated credit agreements to ensure the proper implement of them. This is to be signed by both the customer and lending company.
Now, if all the requirements are met, the loan becomes enforceable. But, on the flip side if all these conditions are not met, it becomes unenforceable loans and the borrower is under no compulsion to pay it back. Certainly, that is big news for all the customers out there.
Well, you might be thinking about how to know whether you have unenforceable loans or not. Fortunately, the loan documentations that you have are enough to decide over that. However, to reach to any conclusion, you must read it carefully as there are a lot of technicalities involved in it. You have to check out whether the lender has factored the cost of PPI or Payment Protection Insurance into the percentage charges. If there is no evidence of that, you may claim to investigate you loan as potentially unenforceable loans.
There are different benefits of this. Well, the first and foremost is that you don’t have to pay the loan anyway. At the same time, the credit card application entry or the actual loan will be removed from your credit history as well. So, you will have a debt free and clear credit history that can be very useful in future as well.
There are certain other conditions under which you may enjoy the unenforceable loans as well. You can check out the old credit card statements and loans and see whether there is any charges and interest rate that is calculated incorrectly. If that is the case, your loan may become unenforceable as well. Also, when the credit card limit is increased without any request from the customer, the credit card facility of the customer may also become, under those circumstances, unenforceable. Again, if the total amount of charges is not disclosed completely to the customer, the loan can be unenforceable and it can be wiped out without paying any fee.
However, to make the most of this, you must take the help of the best professionals. But, that can be tricky since it involves technical skill. This is where a good law company plays an important role. They have the highly skilled professionals who will stand by you at your distress.
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Article Source :
http://www.articleseen.com/Article_Unenforceable Loans: How to Make the Best Use?_11334.aspx
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Author Resource :
The author of this article knows all about PPI and has written many articles on Bad Debt. And the author has an excellent knowledge in Miss Sold and has been in finance sector for years.
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Keywords :
Consumer Credit Act Claim Solicitors, Bad Debt, Wipe your Debt, Unenforceable Loans, PPI, Miss Sold,
Category :
Finance
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Finance
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