Need a Loan to Pay off Debt with Bad CreditDo you need a loan to repay debts with bad credit?
Could you really just wipe out your debt because of a gap in the law? Facts
I was surprised to see so many happy about the reception. Due to a legislative amendment and some insufficient efforts by certain banking institutions, the interest they had earned on their credits was refunded to tens of millions of people. However, while this is great news for some, there is a dark side to the whole thing - more and more individuals are said not to have to repay their credits at all, and it gets them into serious difficulties.
"Last year, the Ombudsman obtained over a hundred inquiries in which individuals who have difficulties in paying back their mortgages have said that they think that their mortgages are not valid," the financial advisor disclosed. In 2008, a legislative amendment required banking institutions to incorporate various information into people's credit extracts - some not.
This error implied that interest was for a brief moment illegal and that consequently cash was returned to tens of millions of people. However, this did not mean that the loan was extinguished or applies to mortgage loans. A group of individuals seem to believe that there are legislation that means debt like a mortgage that does not have to be repaid.
However, this has not prevented them from trying - especially when they are in difficulty and are reaching for any help they can find. Where the Ombudsman sees cases, the parties responsible for responding often call themselves Freemen of/on the Land. Now the Ombudsman has also seen cases where individuals have tried to settle their debt with "cheques" made out by a "bank" established by those who provide deceptive information about non-enforceable debt.
"These " checks " are not legitimate because they do not come from a legitimate banking institution, and the folks who use them to pay their debt find out the tough way," said the Ombudsman. It may not be a cure-all, but there are a number of true groups devoted to supporting those out of debt.
When you' re fighting to make ends meet, get immediate free help from your nearest Citizen Advice Office, call the National Debtline on 0808 808 4000 or Stepchange Debt Charity on 0800 138 1111. Possibly you can also request a debt relief order - find out more here.