The OFT has been working recently to clear up some confusion over the difference between 'Debt Write-Off' companies and 'debt management' companies. At MRA Debt Help we have had lots of enquiries asking if we can write off your debts. The simple answer is no - and we'd be concerned if anybody told you they could.
Debt Write-Off companies claim that under sections of the consumer credit act 1974 they can prove that your debts are unenforcable and have them written off. Unfortunately, this is not the case. The wild claims are simply untrue, as stated by the Office of Fair Trading - and the High Court!
Recent cases in the High Court have shown that if a customer requests a true copy of their credit agreement, it does not have to be an original, or even a photocopy. Debt management clients should be aware that any compnay claiming that they can write off your debts based on the copy of the credit agreement may be misleading you.
The OFT have also reinforced that if a credit agreement is deemed unenforceable, then the lender will be restricted in the activities it may undertake. It may still request payment and or record any arrears or default with a credit reference agency.
If you are struggling with your debts then a debt write off company may charge you a large proportion of your debts for a service that may or may not be legal. MRA Debt Help can offer free debt advice, and inform you of the best debt solution for your circumstances.
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