Commercial Court, London Scuppers Get Debt-Free Quick Schemes

The Courts in London recently ruled on use of unfair provisions in the Consumer Credit Act which has been promoted by innumerable debt agencies charging enormous up-front fees for a debt solution. With many debt companies promising financial freedom from debt over recent years springing up and investing in high profile advertising campaigns, the recent ruling clarifying changes in the Consumer Credit Act has put an estimated 100,000+ cases on hold in courts around the UK.

Senior judges are reviewing a selection of cases which have been filed on behalf of clients looking to eradicate all of their debt. The results will not be known until sometime in June at the earliest and the result is going to have repercussions for every other case in the country.

The ultimate decision could take years to come down if the recent example of the bank charges reclaim action is anything to go by. Where does this leave the tens of thousands of debtors who have already parted with enormous upfront fees and are now expecting to be relieved of all of their debts?

The reality is they are in exactly the same situation as they were prior to paying over their fees; just a lot poorer.

There are legally sanctioned methods for relieving you of your debts which are tried and tested and will work. You can look at arranging an Insolvency Voluntary Arrangement or IVA which does not require any upfront fees from you to assess and arrange and uses legislation which has been enacted for the very purpose of relieving your debt situation without relying on esoteric loopholes in the law. There is of course, the bankruptcy route which is a method of last resort but which will remove all of your debt obligations immediately and free you of bankruptcy within one year – a much faster and more reliable process which many of the people who signed up for the “unfair” terms loophole schemes are now finding out to their considerable cost.