Credit Card Claim Scams
Credit Card Claim Scams and How To Avoid Them.
Consumers are becoming aware that an increasing number of companies are offering a credit card claim service which could result in you being able to write off your credit card debt. While this is genuinely possible in a number of cases, be cautious when choosing a company that claims to provide this service, as more and more reports are coming to light of customers who thought they had a credit card claim, only to find in the eleventh hour that the company they chose is asking for further payment of several thousand pounds before the claim can proceed. Consequently, some consumers are becoming concerned they have been inadvertently caught in a credit card scam.
Customers are being charged as much as £495 to up to £1000 just to have an evaluation or ‘audit’ of their credit card agreement to see if they have a valid claim. Providing the audit confirms the customer may have a bona fide claim, in some cases, they are then being asked to pay further fees of several thousand pounds to cover the cost of the legal process of the claim, as well as funding the insurance policy should the case end up in court and is not successful. This could be perceived as a credit card claim scam, as the consumer has not been made aware of this prior to purchasing the audit.
A credit card claim involves a legal process, so cannot proceed without adequate funding and After The Event insurance in place, unless, of course, the consumer is prepared to pay the legal fees to initially fund the case, with the possibility of having to pay the lender’s legal fees should the consumer lose the case. This is a big risk to take for any consumer, and makes no sense. Why risk a legal bill of thousands of pounds for a credit card that may only have an outstanding balance of the same, or even lesser, amount?
Although there is a genuine opportunity for consumers to clear their current credit card debt due to them having an unenforceable credit agreement, the case cannot proceed beyond the initial audit stage unless funding and insurance is in place. The After The Event insurance cover is also known as ‘No Win No Fee’ and is what protects the consumer. What’s more, consumers are not being informed of this before they pay an upfront fee for the audit of their credit agreements. While it is vital to have a true and legible copy of your credit agreement, and to have had it professionally audited, this is of little use, if you cannot them proceed with the legal process, due to lack of funding or insurance.
Once the audit has identified genuine breaches by the lender of the prescribed terms within the credit agreement, you have to be allocated an experienced solicitor, so your case can proceed. Unfortunately, more and more consumers have found that as long as six months after their credit agreements have been deemed ‘unenforceable’ by the audit carried out by their chosen claims company, they still haven’t been allocated a solicitor!
How to Avoid Credit Card Claim Scams?
While there are some genuine professional claims management companies assisting consumers with their credit card claim claims, they are in the minority. Even some of the larger companies still do not have a legal solution in place to deal with the volumes of customers who have paid them their upfront fee. Consequently, this is creating a backlog, as these companies try to find solicitors who are experienced in consumer credit law and have access to After The Event Insurance. If all your chosen company is doing is auditing your credit agreement, but then not providing a legal solution to potentially processing the credit card claim, then this could be perceived as a credit card claim scam, because they are taking money upfront, for a service that they cannot ultimately provide for ALL their customers.
So, the questions you need to ask any company or agent or individual that you approach, or who approaches you, are:
1. If the audit does identify clear breaches of the Consumer Credit Act of 1974, how long will it take to have my credit card claim allocated to a solicitor?
2. Who is the solicitor, or the panel that is overseeing the choice of experienced solicitors?
3. Do you have a major insurance firm in place who are able to provide After The Event Insurance on a ‘No Win, No Fee’ basis, should the audit prove there is a genuine credit card claim due the results of the audit?
4. Do you have any private funding in place to fund the initial stages of the claim’s legal process, so it can commence without delay?
5. Aside from the initial fee I pay upfront, will I incur any other fees either during or at the resolution of the case? This includes success fees paid to the claims company, or a percentage of the debt cleared, or legal fees to your solicitor or the lender’s solicitor, should you lose the case.
Mis-information is a common problem in the claims industry with companies saying they have funding and insurance in place, but actually don’t, so it is vital that you ask all these questions.
The key is to find a reputable claims company who has the funding available to cover the cost of the claim and the insurance.
The reason a credit card claim requires additional funding for the claim and the insurance is because it is unlikely your Lender will settle without the threat of legal action. As this is a legal challenge based on complex law, it should not be perceived as a ‘Loophole’ to write off your credit card debts. You require the services of a Solicitor who is highly skilled in this specialised area. Firstly an ‘Audit’ needs to be carried out for each claim by a Claims Specialist to ascertain what within the prescribed terms of your Credit Agreement render it potentially ‘Unenforceable’.
Challenging your Credit Agreement is a Legal Process and requires extensive specialist knowledge of the Consumer Credit Act of 1974, which is why we have an exclusive partnership with our PANEL OF SOLICITORS, plus our associates retain the services of a BARRISTER who is an expert in Consumer Law: he is available to give guidance on our clients’ credit card claims, as required.
Debt Clear Solutions have private funding available from a major equity investor to take your case through the LEGAL PROCESS, without any further cost to you. We also work in association with a large City Insurance Firm who provide AFTER THE EVENT INSURANCE so you are represented on a NO WIN NO FEE basis. This ensures you do not incur any further costs apart from the initial fee you pay at the commencement of the claims process.
Only a very few companies currently specialize in genuinely challenging Unfair Credit Agreements and successfully clearing their clients’ outstanding Credit Card and Loan balances. Debt Clear Solutions prides itself on being one of the few companies who does not charge their clients a percentage of the cleared balance upon successful resolution of the case.
Where Can I Get Help With My Credit Card Claim?
The aim of Debt Clear Solutions is to assist you by managing the credit card claim process in order to clear all of your outstanding balances on your Credit Cards and Loans that have ‘Unenforceable’ Credit Agreements. However, you may also be entitled to further compensation due to Unfair Credit Card Charges or Mis-sold Payment Protection Insurance (PPI). By lodging a MULTIPLE CLAIM, you may be surprised to discover you are entitled to compensation.
Our goal is to provide a professional credit card claim service that ultimately clears your credit card debt and get you the compensation that is rightfully yours.
Enter promo code CCC95, for discount.
To receive the discount enter promo code CCC95 when you take our 60 second test.
To see if you may have a credit card claim
take our 60 second test at:
or call us for a free consultation on:
0208 123 9524
Debt Clear Solutions does NOT charge a percentage of any debt cleared upon the success of an Unfair Credit Agreement Claim. The promotional fee of £95 is the only fee you will pay.
Debt Clear Solutions is a Financial Claims Company authorised and regulated by the Ministry of Justice in respect of regulated claims management activities, (Authorisation No: CRM15623).
Debt Clear Solutions is a trading style of ICSVCS LTD. International House, 223 Regent Street, London W1B 2QD.
Registered in England as a Limited Company Registration No. 06610207
Debt Clear Solutions © 2009.
