A debt management firm called Credit Issues has had some success in challenging credit card and personal loan balances by requesting “true copies” of the original agreement has proved a powerful and effective approach.Several rulings by various District Judges have vindicated that strategy and in most cases so far, those “true copies” have not been made available.So with no documentation forthcoming, a positive outcome for Credit Issues’ clients challenging the entire balance (whether they are being pursued by the original lending institution or the debt has been sold to a debt collection agency) is highly likely.To date, they’ve successfully challenged in excess of £1.5 million for their clients and are on track to reach a target of £10 million worth of personal debt successfully challenged.

Even if those “true copies” actually do arrive, that doesn’t mean Credit Issues gives up challenging credit card balances!  They recently negotiated a reduction of over 75% to a major Visa credit card balance after identifying incorrectly stated APR on behalf of a client in just those circumstances. However, in addition to achieving balance reductions and clearance, Credit Issues also seek to get back the sometimes excessive charges that have been applied to client accounts.

That’s especially been the case with MBNA, the credit card provider that is ultimately owned by Bank of America. Earlier in the year MBNA  categorically stated that they would not acknowledge or deal with companies such as Credit Issues,  however only a few short months later MBNA offered to negotiate every case on Credit issues’ books.

That change of heart by MBNA has proved very profitable for Credit Issues’ clients! In one case, they claimed £160 in extortionate charges – MBNA refunded all charges to the sum of £632.08.In another they tried to recover £75 in extortionate charges – MBNA refunded all £477.23 of charges.Perhaps the most impressive was their claim to recover £1,035 in extortionate charges and to their client’s delight MBNA refunded all the charges applied amounting to a grand total of £3,069.44.

So don’t give up on using any legitimate tactic to reduce or write off your credit card debt.  You never know what bonuses you will get if you use a proven and professional debt management company.

Consumers are being urged to continue the battle against lenders collecting legally unenforceable debts and many companies are out there claiming they can clear your credit card and personal loan debt through a “loophole” in the legislation.Credit Issues is one of the more reputable, Ministry of Justice approved, firms that has successfully challenged in excess of £1.5 million of consumer debt and increasing demand for its services has resulted in the firm aiming to challenge £10 million of consumer debt over the course of the year.

But isn’t increasing awareness and encouraging consumers to act just a scam or taking advantage of a loophole though?  Many people seem to take the entirely moral standpoint of being unwilling to entertain an attempt to challenge any unsecured personal loan or credit card debt on the basis that they “knew, or should have known, what they were getting into”.   This course seems to be “running away” from a debt obligation and rewarding lack of prudence, planning and foresight.But the same accusation could be levelled at pretty well every lender, all the financial institutions, major clearing banks, most MPs and all the elite political class at the moment!

The issue may not be whether it’s a defensible ethical course, but rather whether sufficient preparation and professional assessment has been undertaken by the credit management company to ensure that they are not wasting your time by taking on a case that has no real chance of success just to make a fast buck!  Lenders are making some £9 billion a year out of interest and fees from what very well may have been irresponsible lending, but if the contract between two parties breaches prescribed terms under current UK legislation (Consumer Credit Act 1974) it is not enforceable by the lender or the Court.

People whose finances were capable of supporting the commitments they made only a few months ago may now find themselves in an untenable position thanks to redundancy or a reduction in household income.  Circumstances for which they are entirely blameless, so why not look at any legitimate means of challenging and reducing your total debt?The lender cannot force you to pay the debt back and they do not have the right to sell the debt on to a debt collector or any other third party and provided you select specialist advice from an advisor or company registered with the UK Ministry of Justice, you can at least challenge a significant proportion of your unsecured debt.

Credit Issues is just such and approved organisation and has successfully pursued almost £ 1milion worth of debt so far this year, challenging enforceability through scrutiny of “true copies” of agreements.Several recent, successful, English court cases against well-known lenders have concluded with District Judges consistently ruling that the debts were being disputed on substantial grounds and that the agreements were indeed unenforceable.  Most recently, the Credit Issues team successfully removed one client’s liability to credit card debt, despite it being assigned by a major lender to a debt collection agency, and he was able to clear the entire balance of £16,029.50.

Irrespective of who the credit card or unsecured loan provider is (even if that debt has been “sold” to a debt collection company) and even if the requested “true copies” original agreements that form the basis of many of these successful cases are available,   so long as the balance is over £2,000 Credit Issues could help challenge or reduce the balance of your credit card or unsecured loan and also reclaim any mis-sold payment protection insurance or accident sickness cover together with interest.

That’s not a scam or a get-out.  It’s a legitimate and entirely defensible avenue open to hard pressed families, who through no fault of their own, face severe debt worries. The only caveat consumers should bear in mind is the importance of choosing a firm with a specialist legal team and proven published details of successful cases.

Recent data indicates that personal insolvencies in Scotland rose by a dramatic 137% in stark contrast to figures published on Protected Trust Deeds (a version of an IVA north of the border) which suggest a modest 1.6% increase quarter on quarter.  This of course reflects only those who have approached a licenced insolvency practitioner to establish such an arrangement. These figures may seem counter intuitive when set against other data that suggests Scottish homeowners have emerged relatively unscathed from the housing price slump with just 1% of Scottish owner–occupiers in negative equity.

However, that may help explain the relatively low ratio of those successfully going through the PTD route. People whose finances are now stretched to breaking point still retain sufficient equity in their property to make a PTD acceptance unlikely as creditors will be inclined to deny any “IVA-like” suggestion and propose that the debts are paid in full when the equity remaining in the property is greater that the total debt owed.

More immediate and practical action is available to reduce the levels of unsecured debt at least on a UK-wide basis using key changes to the Consumer Credit Act 1974 that apply nationwide.  This approach means that the total balance on some credit cards and unsecured loans issued before 6th April 2007 could be cleared completely.The strategy of challenging enforceability through scrutiny of “true copies” of agreements has been proven in the English courts, with several recent court cases concluding that the debts were indeed disputed on substantial grounds and that the agreements were indeed unenforceable.

There is no reason why this approach should not be equally successful in Scottish Sheriff Courts.  Indeed a company called Credit issues successfully removed one client’s liability to credit card debt, despite it being assigned by a major lender to a debt collection agency, and he was able to clear the entire balance of £16,029.50.  Irrespective of who the credit card or unsecured loan provider is (even if that debt has been “sold” to a debt collection company), so long as the balance is over £2,000 you could clear your credit card or unsecured loan debt and also reclaim any mis-sold payment protection insurance or accident sickness cover together with interest.This action will at least will take the pressure off and reduce the gross amount of debt outstanding.