Beware Of Companies Offering To Write Off Loan And Card Debts
Many individuals with personal loan and credit card debts would like to be able to have all their debts paid off for them, particularly in the current economic conditions, but consumers have been warned to be extremely wary of the increasing number of companies which seem to be springing up who are offering to write off an individual’s loan and card balances, due to the original contract with the lender not being legally binding.
The Citizens Advice Bureau (CAB) has issued the warning following a large number of advertisements appearing in the press recently, which the CAB claim are misleading.
Many of the adverts in question lead borrowers to believe that the credit agreements which apply to their personal loans and credit cards are actually unenforceable and therefore a person’s debts may be written off without any come back from the lender, or detriment to an individuals credit rating.
These companies, whilst not actually giving any guarantee of success, typically charge around £500 for every credit agreement which they investigate, so for someone with several outstanding personal loans and cards, they could have a substantial bill to pay before they start.
Citizens Advice have advised consumers that the vast majority of personal loan and credit card agreements are legally binding and therefore enforceable, but for someone who would like to know if any of their loans can be written off, they should consult their local CAB centre who can provide the same service for free, rather than parting with a large sum of money up front, only to find out none of their loans can be written off much later on.
It would seem that this is a clear case of “if something appears to be too good to be true, then the chances are it probably is!”
