We believe credit cards are multiple agreements providing two component parts; one being an unrestricted-use debtor-creditor agreements for the purposes of cash withdrawals and the other a restricted-use debtor-creditor-supplier agreements for the purposes of financing purchases. Each part contains a different rate of interest for the credit provided, with cash withdrawals being significantly higher than finance for purchases.
The majority of credit agreements produced by credit card companies allows for minimum monthly payments of no less than 5% which, according to the terms of the agreement, is allocated as follows:
a. Promotional balances and fees b. Interest, fees and charges c. Standard rate purchases and balance transfers d. Cash balances
We believe that these terms create an unfair relationship which is contrary to the Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2003).
If you are fortunate enough to be able to clear your credit card debts at the end of each month, then these terms will not affect you.
However, we're hearing that some credit card companies are using underhanded tactics to force people who could clear their balances at the end of each month to default.
It wasn't that long ago Egg cancelled 160,000 credit cards. The majority of the victims were not a risk, as claimed by Egg, as they had good credit ratings and had paid their balances off in full at the end of each month. However, for those people that could clear their balances, many were forced to default to paying by installments as they suddenly had substantially less credit available to them. We also understand that Egg, Natwest and Virgin have all increased the APR after the introductory period has come to an end. The problem we have will all this is that we are not informed at the time of signing the application form that the APR stated is an introductory rate only.
Another tactic used by credit card companies, namely Abbey and Citicards, is to move the payment date forward and then charge you for defaulting. By forcing you to default on the account, the credit card companies then increase the APR to the default rate.
It appears banks and credit card companies have been abusing their position for so long and action now needs to be taken redress the balance.
Credit cards are regulated under the Consumer Credit Act 1974 (the Act). Where credit cards fail to meet the prescribed terms of ‘the Act’, we may be able to challenge these in court. If successful, the outstanding balance on your credit card could be written off. Hence for credit card debt reduction, get in touch with us straightaway!
To give you some idea on the success we are having in clearing or reducing credit card debt, one of our clients had three Lloyds credit cards written off amounting to over £11,000.
Multiple claims have been made against, Barclaycard, MBNA, Halifax, Capital One and many others.
Unlike Cartel and other fee charging claims management companies, we do not charge for writing off credit card debts. Our solicitors offer the best credit card debt advice and work on a Conditional Fee arrangement, so if we are successful, we recover the costs from the other side. As a reputable credit reference agency, we also provide lenders like banks, loan companies and other related organisations with an array of information regarding prospective borrowers.