There has been a great deal of publicity regarding the possibility of proving that a credit agreement, usually for a credit card, a loan or other unsecured debts are not enforceable. It is true to say that the law is on the side of the consumer, however the actual success rate of claimants to date is difficult to quantify.

If you have a debt because you entered a credit agreement after April 2007 you will probably not be able to make a claim, although it is know that some lenders did continue to use up old stocks of credit agreement forms after this date.

For any agreements taken out before this date the chances of success are considerably greater. The Consumer Credit Act 1974 says that a credit agreement must have certain "prescribed terms" If one or more of these conditions are not met it is impossible for the court to enforce the debt.

In order to establish whether the agreement you have with your provider is unenforceable it is necessary to examine the agreement document in close detail. There are a great deal of potentially small but important details which can be used to show that the arrangement disadvantages the consumer. 

Recently there have been lots of companies who have sprung up offering to check your credit agreement, at some time in the process they will try to charge you a fee.

Many of these companies will offer to "have your credit card balance written off" The consumer should beware, to have a balance written off will require a visit to court. If you are approached by a company making these kind of statements it would be wise to see proof that they have actually had successful cases BEFORE parting with your hard earned cash.

It is possible to ask your creditor for a copy of the agreement yourself. If you find that the agreement does not meet the requirement of the law, not even the courts can enforce the debt. This will not see you debt free but, at this point, many people have decided to simply stop paying the creditor.

Dealing with credit card debt can be difficult and some of the promises made by some companies remind us of the story of the emperors new clothes. Perhaps we at the IVA Watchdog will be like the little boy who eventually helps everyone to see what is really happening.

IVA Watchdog

2 Landsdowne Crescent

Bournemouth

Dorset

BH1 1SA

01202 636070