18 replies to this topic

[leigh21]

Hi guys, a mate of mine from work told me that he was currently trying to get a loan over turned because of a loop hole in the credit agreement, if it works he will get away without paying the remaining balance on his account (which is over £6000), been doing some research on the internet and didnt know if this was a good idea, has anybody on here done it or thinking about doing it?

Thanks

[mymini007]

Hi guys, a mate of mine from work told me that he was currently trying to get a loan over turned because of a loop hole in the credit agreement, if it works he will get away without paying the remaining balance on his account (which is over £6000), been doing some research on the internet and didnt know if this was a good idea, has anybody on here done it or thinking about doing it?

Thanks

A while back, I had a credit card with £15,000 on it, managed to get it down to £12,000, but it was killing me trying to make the £340 a month payments, plus if i missed a payment that cost me £45 from the card company and £30 from my bank, and of the £340, I think £20 was reducing the capital, the rest was interest.

Anyway......

a finacial advisor told me to stop paying it.

This way, the card will be frozen, and the debt handed to a collection company, this put a freeze on the charges and the interest too, and i got to pay as much as I could when I could, but I was now clearing the balence and not the interest.

Once i got to a situation where i could pay back the remaining balence about (£8000), they said make us an offer in the region of 70-80% of the total ramaining, and this is what i paid.

The biggest problem after that was getting credit, and not just more credit card (not doing that again) but phones, mortgages, bank accounts, pay monthly car insurance, you name it, I could not get anything for about 5 years.

So it depends what sort of loophole you are talking about, go and see a finacial advisor, and they will put you straight, but if you are going to try to get it written off, you may be worse off in the long term.

Hope that helps!

[Jammy]

If you stop paying for it then you WILL get marks on your credit score, which can affect your ability to get future financials. And currently anyone without a perfect credit score will find it difficult to get credit, or at least credit on favourable terms.

As for using a legal loophole to get out of loans. There are examples of people doing this, such as asking for the bank to send you a copy of the signed loan agreement. If they can't find it/don't have it then they'd find it difficult to enforce the loan, alledgedly! There are companies who will 'buy' your credit off you for a fee, and they are then betting that the loan they've 'bought' will not be enforcable.

Be warned though, I recently read a discussion about this on another forum and there is NO legal way for you to remove your obligation to pay a loan. Even if you sell your debt to another company (who will insist that the bank cannot then come to you for the repayment), your obligation will ALWAYS be there to settle the debt.

You might win, or you might get your hand burnt.

Plus there is the moral issue that you got yourself into the debt, now you should get yourself out. If everyone tried doing what your doing the banks will just try and make up the loss of revenue from other areas, such as charging everyone for current accounts, etc.

[rosco454]

Plus there is the moral issue that you got yourself into the debt, now you should get yourself out. If everyone tried doing what your doing the banks will just try and make up the loss of revenue from other areas, such as charging everyone for current accounts, etc.

I totally agree with this,to me there are far too many options for people to wriggle out of a mess they have made for themselves.

Im not speaking from a whiter than white position here either as i got myself into a bit of debt when i was young and stupid.Just had to knuckle down and save in order to pay it off,i cleared the last few grand about a fortnight ago and feels like ive accomplished something to be totally debt free.

[yorkshirechris]

As far as I'm concerned there is no moral issue because at the end of the day, the lender has given you that money so shouldn't they have taken risk into account when doing so? A £15,000 credit card is absolutely ridiculous, I thought my £4500 one was big enough. Then again I am a cynic of the banks and money lenders so I would always side on the borrower.

There's a thing called IVA, something Voluntary Agreement which is what I think mymini007 entered into. Basically you say I can't afford to pay all of this back - you then reach an agreement on how much you'll actually pay - and pay that. The downsides are that you'll end up paying a big chunk if not most of the money back anyway so it hasn't really done you much of a favour, oh and that little bugbear of your credit rating being screwed for 6 years. My ex wanted us to go into an IVA over a secured loan we have, because she is one of these people who wants to go nowhere in life and isn't bothered about her credit rating. I, on the other hand, want to actually do something with my life and have a mortgage etc, I went to a financial advisor who said only do an IVA if you really, really NEED to as a last resort. Fortunately I can just afford to keep up with the repayments so I am doing, I'd rather have a year or so of it being tight than 6 years of being declined everything.

[matty4113]

Hi guys, a mate of mine from work told me that he was currently trying to get a loan over turned because of a loop hole in the credit agreement, if it works he will get away without paying the remaining balance on his account (which is over £6000), been doing some research on the internet and didnt know if this was a good idea, has anybody on here done it or thinking about doing it?

Thanks

you can claim the ppi back (i have done this) but never heard of the full loan being scrapped

[leigh21]

yeah i agree with what you guys are saying, just its been all over the radio and the papers the last few days with people getting 000's back just wondered if anyone had done it

[R1mini]

As far as I'm concerned there is no moral issue because at the end of the day, the lender has given you that money so shouldn't they have taken risk into account when doing so? A £15,000 credit card is absolutely ridiculous, I thought my £4500 one was big enough. Then again I am a cynic of the banks and money lenders so I would always side on the borrower.

I don't agree you are supposed to be responsible adults, pay it

David

[minimarco]

Weaseling out of things is important to learn. It's what separates us from the animals ... except the weasel.

[Strontium Dog]

I was pursued for £30,000 by the legal services commission after a custody battle for my daughter. I now co-parent her (which is all I ever wanted) and this was agreed out of court afterwards anyway! My MP (Geofrey Cox) told me to go bankrupt after referring my case to the parliamentary ombudsman who was disgusted but could do nothing, so I did. My house was in negative equity due to the recession so I get to keep it. I have kept all my tools, computers and most everything really and rolled over on the banks for all my other loans etc too. I could have paid the banks, but you can't exercise discretion when becoming insolvent!

I would say pay your debts if you can, but if they are there due to an institutions injustice or or unfair practises then stuff them! You are only paying for them to have vastly bloated bonuses and pensions anyway! The dodgy gits won't even help small business even though they were supposed to in return for all the tax payers money they got a while back!

Edited by Strontium Dog, 31 July 2009 - 08:38 PM.

[rosco454]

Weaseling out of things is important to learn. It's what separates us from the animals ... except the weasel.

So is being responsible for your actions and learning from your mistakes,running away from a problem is what children do.I think that in isolated cases these things are caused unjustly perhaps like for strontium dog but more often than not,people sign up and just push the reality to the back of their minds.

Great Homer Simpson quote though

[mymini007]

I now live by the rule, if you cant pay for it, live without it till you can, I learned the hard way, I have a credit card and a mortgage and all the rest of it, but the credit card is for absolute emergencies, and a last resort, and if i do have to use it i make sure I have the money to pay it.

Some people say they have to jump through hoops and prove they dont need a loan to get one. I say good.

Ok, there are extreme cases (Strontium Dog) I would do the same in a heartbeat. even if it cost me everything in the world for my girls.

I was young and stupid. I spent the cash on Cars, Girls and beer, I had nothing to show for the massive debt i had created, and I worked hard and paid the majority of it off and now I am debt free.

I had a sh***y time of it for 5 years, but serves me right really, I should not have taken on the loans in the first place.

If you dont borrow it, you dont need to pay it back.......simples!

[R1mini]

I would say pay your debts if you can, but if they are there due to an institutions injustice or or unfair practises then stuff them! You are only paying for them to have vastly bloated bonuses and pensions anyway! The dodgy gits won't even help small business even though they were supposed to in return for all the tax payers money they got a while back!

pay up

Edited by R1mini, 01 August 2009 - 08:47 AM.

[chunkytfg]

Dont know the real ins and outs to this but some facts for you anyway.

The IVA mentioned is a individual Volutary agreement and is basically the step before declaring yourself bankrupt.

An iva is not what is being discussed.

What is being discussed is the loophole in the credit consumer act that basically means you ask the creditor for a copy of your signed credit agreement. If they dont have it or are not able to produce it in the time as set out by the CCA then the credit is unenforcable. This does not mean the loan is written off though it just means you dont have to pay it! You will still owe the money.

The majority of times this method is used you are in a position where you have massive debts which you cant keep on top of and the credit gets sold to debt collection agencies(DCA). This extra involvement of the DCA is usually the best means of enforcing the CCA to get out of paying the credit as the paperwork rarely gets sent to the dca fully.

As has been mentioned going down this route will severly limit your future credit ability. You will struggle to get debit cards, mobile phones, and pretty much anything else that involves paying monthly. even car insurance so if you have a high insurance premium think about weather you can afford to pay it in one go even if you dont have any monthly outgoings due to writing off your debts!

Please not though this method is ONLY avaliable if the credit was 'signed' for before 6th april 2007. Anything after that date can be enforeced without the signed credit agreement as the rules changed to allow for 'distant selling' such as applying for loans online etc etc.

If you seriously want to go down this route then beware. It is not to taken lightly and has the chance to severly ruin your life. Admittedly some people are having there lives ruined by debt anyway so the difference is negligable however if you judt dont want to pay even though you can take heed of my warning.

Have a read of the forums and guides on www.moneysavingexpert.com and use the advice wisely.

Secondly DONT use the companies that offer to do it for you. They WILL want paying up front anything up to £500 and they do not garuntee to be successful. They do not do anything you can not do yourself with a printer and a couple of quid for postage!

Hope that helps

[rosco454]

Chunky is right,dont contact anyone that advertises on the radio,tv etc they are all out to take something off you.You will generally find that any orgainsation that can genuinely help you will be free,money saving expert has some excellent advice so make sure you have a look.Lots of small things on there as well that can make all the difference between been teetering on the edge and falling off.

Click me!!