- Is Debt Write Off for me?
- How does this service compare to others?
- Why does the company want my debt?
- What will happen to my credit rating?
- Are there any repercussions?
- Why do I have to pay up front?
Is Debt Write Off for me?
Debt write off is not for everyone. For the fast track service the unsecured debt agreement must have been taken pre 1st April 2007 (and not updated by YOU since as any later agreement may supercede the original: if a lender has given you further credit limits on a credit card without you asking that is OK). You will also need to stop using any credit card or other facility you want to use for the services noted on this website and you will also have to pay an upfront fee. The benefits of being able to be clear of your debt for a fraction of the outstanding balance within a short time frame combined with peace of mind may well outweigh the cost involved. Only you can decide.
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How does this service compare to others?
The Fast Track service is Guaranteed to clear that debt for you once it has been accepted by the claims management company. Some other companies are trying to decide if it can present a case in a court of law months and months and months after the application for debt write off was made. Be Clear of Debt knows of one person who was told he could stop paying the creditor only to find 15 months from application that the agreement was in fact enforceable and of course his debt was now liable to serious additional late payment fees and charges. His credit file was also showing a bad payment history!
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Why does the company want my debt?
If the company decides that your debt is unenforceable in a UK court of law it is prepared to present a case at court. When successful (either the lender will want to go to court or it will agree that the debt is unenforceable before going to court) the debt will be written off. The company has obtained a payment from you which means it has made profit. For you the debt is written off and you are not interested in what happens afterwards in a similar way that a lender is not interested in what happens once it has sold a debt to a debt collection company.
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What will happen to my credit rating?
Your credit rating should not be affected. If you already have a 'bad' credit history because of a debt that turns out to be unenforceable that record should be removed from your file. A credit reference agency is committing an offence if it does not update the appropriate records within the required time-scale (Consumer Credit Act 1974 Section 159).
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Are there any repercussions?
The lender may not want to do business with you now or in the future. If you have a bank account and debts with the same lender you may want to open an account with another bank before proceeding with an application. If your credit file is already impaired there may not be anything you can do to repair it. The court can make the creditor have references to the debt that is written off taken off of your credit file.
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Why do I have to pay up front?
Similar to buying a loaf of bread from a supermarket. You pay up front. If you enjoy the bread you are happy to pay. If the bread is in anyway faulty you return it to the supermarket for a full refund. This is similar. The company will audit the debt and if it decides to take the case you are guaranteed to be free of that debt (eg you enjoyed the bread). If the debt is considered enforceable it will not be taken by the company and you get a full refund of the fees applicable to that debt (eg the bread was returned and a full refund given).
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