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Unenforceable Credit Agreements

Over the last two years there has been a sudden increase in the number of claims management companies claiming they can write off your debts for a set fee. Some of these fees can be as much as £500, namely Cartel, who have held on to clients fees for over a year without any updates on case files or any legal action taken to clear the debts.

Bournes do not charge for writing off debts. Our solicitors work on a Conditional Fee arrangement, which means that we recover the costs from the other side if we are able to write off your debts. If you have paid out to Cartel, or other fee charging companies, it is not too late to cancel. A Bournes case worker will be able to assist you in recovering your money back. After all, why pay hundreds of pounds out to challenge agreements when we do it for free?

Unenforceable agreements have been around for many years, long before companies such as Cartel came along.

In 2003 Mrs Wilson won her case against First County Trust. Her case was won on appeal because the amount of credit was misstated as it included an item that a charge for credit.

In the case of McGinn v Grangewood Securities Ltd [2002], the agreement was found to be flawed because, once again, the amount of credit shown was misstated as it included an item that a charge for credit.

On 5 May 2004 we saw the first multiple agreement argument in the case of Ocwen v Coxall, Ipswich County Court. In this case a possession order had been set aside because the agreement contained three separate parts, resulting in the amount of credit being misstated.

There are many other cases surrounding unenforceability of credit agreements.

The vast majority of loan agreements coming in to Bournes can be challenged. That is why we check every agreement that comes into our agency. If we feel you may have a claim because your agreement appears in the same format as the unenforceable agreements mentioned above, your case will be sent to our solicitors. We aim to identify claims within the first three months of your first payment to Bournes.

Remember, Bournes do not charge for writing off debts, we only charge one fee of 10% to clear your debts, whether that involves challenging the enforceability of the credit agreements through our solicitors, or negotiating interest and charges to be frozen whilst you are on our debt management plan.

Ideally we like to challenge credit agreements before you have received a County Court Judgment or have received an order for repossession. Whilst we have successfully had County Court Judgments set aside and prevented repossession, we often find it is easier for us to negotiate with the creditors if we are involved in the early stages of your claim.

If you feel you are experiencing financial difficulties, don’t delay, call us today. We do not charge for initial debt advice. We’ll find the best solution for you, whether that be challenging unenforceable credit agreements (like to ones mentioned above), or helping you with bankruptcy applications, debt management or administration orders.