Would it be Really Useful to clear your credit card?

Before April 2007, many credit card companies issused agreements that have now found to be uninforceable . For example some didn't give an APR, while others didn't give an example on the cost of paying back the loan. These things are a legal requirement. If they are missing, the contract may be legally unenforceable.

Most people have lost their agreements, so we take your credit card details and pass them on to our solicitors. The solicitors request a copy of the agreement from the lender so that the details can be checked.

If the credit card agreement is flawed the solicitors will take it to court.

Credit card claims of £5,000 or under are dealt with by the small claims court. Over £5,000 they are taken to a higher court.

What are the costs?
The administration costs are £85 per card. If people have several cards, they tend to get 1 card processed each month or 2. (Some companies are charging as much as £495 for this service)

Are there any solicitors costs?
‘No win no fee’- The solicitor makes no charge if the case is not won.
In a small claims court, solicitors cost are not usually awarded, and the solicitor will charge 25% of the balance cleared.
For amounts over £5,000, the case is heard in a higher court. Here costs are usually awarded, usually sufficient to cover the solicitors’ fee.

How long will the process take?
The courts are dealing with so many cases at the moment, that a reasonable estimate from claim to settlement is 2 years. We are hoping that this will speed up.

Will it affect your credit rating?
No – as long as you keep up payments until the card is declared unenforcable by a court. You certainly won’t be offered another credit card from the same company, but there will be no effect on your credit score.

For some Really Useful help:
Telephone 07855 799 807
Or email david@usefulmortgages.co.uk
http://www.usefulmortgages.co.uk/