Credit Card Balances Written Off
Posted by ~Ray @ 2008-10-10 03:17:17
You may have heard that debts incurred on UK credit cards before April. 2007 may actually be written off under certain circumstances. The is required to produce the original copy of the agreement that it had with you and if this credit card company no longer has this document then the debt incurred on credit cards become unenforceable by law. This should not be misunderstood. The debt that you have on your credit card is not wiped off. It remains there and simply the credit card company cannot legally process any claims.
The debt against your credit card is left as it is unless the credit card company is able to locate the original papers or until the time the claim comes under the limitation Act of 1980 which is the six year rule. Under this Act the debt becomes nonexistent after six years from the last time it was acknowledged. There are several agencies that would take up your credit card debt problems and offer to. These agencies provide you with this service against a fee while they deal with your credit card debt within the legislation which controls such claims.
Since 1995 write-offs of credit card balances have risen substantially from £0.1 billion to £1.6 billion in 2003. In this statistics the write-off of £1.6 billion includes the process of one bank changing their accounting methodology in which it had to write-off some of the non-performing loans. The increase in credit card write-offs has mainly been accounted for individuals and by percentage the write-off has increased from 19% in 1995 to 23% in 2003.
Over the years have increased by many folds especially the individual accounts and this started to rise sharply as from 1990’s. The rise of credit card debts flattened to around £1 billion but again debt write-offs started to rise sharply during 2001 and 2002 pushing it up to around £2 billion. This has been mainly due to clearing out credit card bad debts. There has been sharp increase in credit card debt write-offs with such write-offs more than tripling and accounting for 3.3% at the end of 2003.
Debts as it is are very worrying more so when the interest rates are high. Credit card interest rates fall within those which have the highest APRs in the United Kingdom. Defaulting on credit card payments will cost you more and more as the high interest rates mount up on your balance. There is one thing to remember. Even if you are paying your credit card bills regularly it is not worth paying the minimum since the interest on the balance eats it up and goes much above what you pay.
If you are having mounting credit card debts and you are receiving distressing phone calls since you are not able to re-pay the debt it is wise to look into the matter of the possibility in having your credit card debt written off. You are also disturbed with the fact that you are trying to avoid facing your debtors and having a nervous mind over the re-payment issue of your debt. If this is what you are going through you could take advice from several councillors who would be able to tell you if your credit card debt could be written off under the UK legislation.
The fact of the matter is that credit card companies and banks seem to be too accommodating when you apply for credit cards. You will be surprised that in some countries banks send unsolicited credit cards to people and suddenly show a balance of 1000’s of pounds even when the person has not even signed on the unsolicited credit card that he has received. Therefore banks and credit card companies are just creating debts.
Take for instance that you have applied for a credit card. The concerned bank looks at your credit file and they find that you already have six credit cards with £ 5,000 limit on each. More-over you on those amounting to£ 15,000. Now I wonder why even after looking at such a record the bank decides to issue you another credit card. Does it look like they are doing a favour to you? It is purely their attempt to put you in deeper debts than before. The United Kingdom legislation has taken a notice of this fact amongst many others and by this legislation you can have your debts written off under certain terms. Technorati Tags:. Add to: | | | [ADVERTHERE]Related article:
http://www.debt-advice-online.com/blog/?p=60
0 Comments:
No comments have been posted yet!
|
