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Claims Company crushes £11,000 credit card balance


CliveH

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1 December 2009

 

Credit Issues

 

A credit card balance of more than £11,000 has been completely written off

due to the lender failing in its obligations under the Consumer Credit Act.

Leading claims management company, Credit Issues and their nominated

solicitors, BPS, broke the news to their client earlier this week, confirming that the balance of £11,038 had been totally written off. The case, which was bought against the lender MBNA, had been scheduled for a full trial in the Manchester Mercantile Court starting on Monday of this week. However

MBNA capitulated just hours before the commencement of the trial.

 

Despite several request by Credit Issues MBNA failed to provide a true copy of the signed credit agreement, leaving BPS no choice but to issue

proceedings against the lender.

 

MBNA also caved in on a second case due for hearing this week, enabling

Credit Issues to confirm to another client that their £6,217 credit card balance had been written off.

 

MBNA are not alone as Credit Issues have many thousands of clients across a variety of lenders, many in a similar position. The trial at Manchester this week that includes cases against a number of lenders other than MBNA continues and will, if successful, lead to a successful resolution for thousands of clients.

 

Lee Lipson, Legal Services Director at Credit Issues, said:

 

"The Consumer Credit Act makes it clear that lenders must provide a true copy of the original credit agreement when requested, in this instance the lender failed to do so and as a result was in breach of its’ statutory obligations. MBNA’s capitulation hours before the start of the trial is a real indication of the seriousness of this issue. Having brought proceedings against a number of lenders we are in court this week to seek guidance and a successful outcome for many thousands of our other clients who find

themselves in a similar position."

 

For further information please contact:

 

Andrew Hood, Marketing Director at Credit Issues, Mobile 07826 937 463;

ahood@guardianfg.com

 

Lee Lipson, Legal Services Director at Credit Issue;

 

llipson@creditissuesltd.co.uk

 

Notes to editors

 

Credit Issues is regulated by the Ministry of Justice, under reference CRM13429, to

carry out regulated claims management activities. Its’ offices are in Ormskirk and

central Manchester.

Credit Issues Limited

Glover House

72B-&2E New Court Way

Ormskirk Business Centre

Ormskirk

L39 2YT

0191 482 7330

 

....................................

 

may be good Xmas pressie for some.

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So do we understand from this Clive that a legal loophole allows some credit card users to abdicate their own responsibility for their own actions in overspending - after all nobody twisted their arm and made them rack up unaffordable debts.

 

Perhaps they were simply following the role model of our esteemed leader who also will be allowed to evade repaying the debts that he has racked up for us all?

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Everything has to be paid for in life and when this bill is written off, then who pays?

 

My guess is that we all end up paying, in a similar way that motorists with insurance pay a higher premium, so as to cover claims arising from uninsured drivers.

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Could not agree with you guys more. I posted to get an instant reaction.

 

This was sent to us here by our "techies" with the comment "Why does the FSA require us to advice prudent use of debt?" - when the law says the opposite.

 

After reading this - what am I as an adviser supposed to do?

 

The FSA requires us to advise people to act responsibly - and we are able to advise on debt mitigation.

 

Now it seems there is a loophole and technically I have to make clients aware this loophole exists. Because if I do not and I advise people to pay off debt in a responsible manner and then some smart a**e tells them I should have told them about the loophole - guess who the FOS will side with?

 

No I am not happy with this at all

 

It does seem to me that the responsible will pay for the irresponsible and with the laws blessing at that.

 

Lunatics are not just running the asylum now - they are changing the rules within it.

 

 

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I feel that fiscal responsibility starts at home!

 

However, I do object to the extortionate 'charges' that banks use for unauthorised overdrafts as these are often used to penalise those who can least afford to go into debt.

 

There is a big difference between charges that are fair and transparent and ones used for no other reason than to collect cash for the banks.

 

Banks themselves are businesses, but they also have a social responsibility.

 

I object to the fact that they are phasing out cheques, which I find a useful method of carrying out a transaction, but will I be able to stop them ...

 

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messerschmitt owner - 2009-12-16 4:55 PM

 

I feel that fiscal responsibility starts at home!

 

However, I do object to the extortionate 'charges' that banks use for unauthorised overdrafts as these are often used to penalise those who can least afford to go into debt.

 

There is a big difference between charges that are fair and transparent and ones used for no other reason than to collect cash for the banks.

 

Banks themselves are businesses, but they also have a social responsibility.

 

I object to the fact that they are phasing out cheques, which I find a useful method of carrying out a transaction, but will I be able to stop them ...

 

 

The subject of phasing out cheques ( for the benefit of banks, not us) came up on the radio 4 'Today' programme this morning - the immediate overwhelming e-mail response from listeners was that they should NOT be phased out.

As someone said " How can I include an electronic transfer in a birthday card to my nephew".

 

One 'reason' from the banks was that we have been using them for 300 years - but that just means that the system works.

... and cheques work even during a power cut, or when your computer has crashed).

 

Maybe the banks are planning to give EVERYONE a free laptop ?

( Plus training of course for those who are not computer literate).

 

 

:-(

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Cheques for a lot of people are a relativly new thing, I had a cheque account long before my father or mother and I think a lot of their generation. Have they reached the end of thier usefullness? I think so, I have writen 2 cheques in the last 2 years.

As for the credit card issue, once again the seemingly more sensible get clobbered >:-(

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Colin

 

I go through a cheque book (50 cheques) every three months - I pay about 200 cheques into my account a year - totalling a five figure sum each year - some of us like them and deal with a lot of people who do!

My wife, a guider, gets the subs paid by cheque, my work gets cheques and writes them too - it's an inconvenience for the banks not for the customers!

 

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messerschmitt owner - 2009-12-16 9:05 PM

 

Colin

 

I go through a cheque book (50 cheques) every three months - I pay about 200 cheques into my account a year - totalling a five figure sum each year - some of us like them and deal with a lot of people who do!

My wife, a guider, gets the subs paid by cheque, my work gets cheques and writes them too - it's an inconvenience for the banks not for the customers!

 

You are dead right about the banks.

 

I reckon that someone in a bank was told that if he came up with a good idea to save the banks money, he would get a huge bonus.

So he said " Why don't we stop people using cheques, then we can get rid of some staff "

 

" Brilliant" they said and gave him £5million pounds, ( which had just arrived from the Treasury ), as a bonus.

 

So now of course they have the task of phasing them out.

 

:-(

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I don't use cheques very much - may one or two a month - but I can't think of any other way of dealing with those particular transactions, without huge inconvenience at both ends.

The comment Malc quoted about birthday cards rings true for me (the only other alternative - gift vouchers - restricts where the recipient can spend the money!). Or can you still get postal orders? Even so, they were always expensive.

Again, as Malc says, the "antiquity" of the system simply means it works - as compared with any new technological method, which will inevitably have teething troubles!

I think I may start a new thread about where technology (or the use of it) went wrong.

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The last time we used cheques was when paying some money off our mortgage account, despite us having an on-line account and there being a local branch of the mortgage company, we could only pay funds off the mortgage by sending in a cheque ... so how else would we do this? 8-)

 

Saying that, they're not that safe - one cheque for £3000 to our building society did get 'intercepted' at the Royal Mail's offices (it went straight in the mail bag at work so it must have been an inside job), the cheque was 'amended' so that someone else could benefit, fortunately the society realised and didn't cash it ... could've been an expensive problem to solve!

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I guess the new 'cheques' will be mobile phone payments, which should be out soon, so when you walk down a street in Naples by the time you get to end your account will be emptied. :-(

I still remember when the law changed so that you couldn't demand payment of wages by cash, both my parents moaned about it, pretty much like this is :D

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