I read something today that shocked me. I’m not going to put a link in, because I don’t want to send you there. This was specifically for readers in the UK, but I’m sure there are similar things in the US. This article, which pointed to another website (using an affiliate link) suggested it could help with releasing hapless victims of unfair credit agreements. All this in just 5 simple steps!

I went immediately to check it out - anything that could be useful to readers is worth a look. It made fascinating reading - in the way a venomous snake is fascinating… The article explained that of the 50 million new UK credit agreements made annually, 20 million are likely to be unenforceable! It sites (without references) a case of “a consumer in The Midlands” as seen “on the BBC” (reputable organisation to lend credibility, but with no links) who recently had £36,000 worth of loans and credit cards written off. It doesn’t mention that this case has anything to do with this company or anything more about it at all. Then it says - You get to keep 100% of any final settlement, plus interest! Then, in bold, “and any goods or services already purchased”.

Is your greed awakened yet, that shameful place inside you that feels the weight of your debt lifting with the extra triumph of free stuff? It’s meant to be. And if not your greed, then your desperation, the part that longs to be free, to have someone else make it all better. In fact, it’s essential to their plan that one of these parts of you is awoken before you read the 5 steps.

The first step involves you parting with between £200 and £300 ($400-$600). This is purely speculative money. It’s non returnable. It’s the fee required by this company to investigate the fairness of your credit agreement. If it is found to be unfair, there is no further fee to continue. If it is fair, like more than half of the agreements made, the money is no longer available to you and your debt goes on for longer still.

I decided to look a bit further into the issue of unfair credit agreements. This company makes it sound as though the courts will easily grant an effective annulment of as many as half of the credit agreements in the UK (The numbers go up to 50% on their site). There are some simple sums to be done here. UK total consumer debt stands at £1409bn currently. If half of all consumer credit is based on unfair agreements that means approximately £700 billion has been extended unfairly. If all this is claimed back through the courts, who pays? At what point will the courts stop ordering the credit companies to pay out? There is no sense to it, at all.

I went to the Citizens Advice Bureau website. There, I found some very useful and impartial advice. If you feel you have been treated unfairly, it’s really important you get it sorted out - there are unscrupulous credit agencies out there. If you really haven’t, don’t bother yourself with these companies that make unreasonable promises. The key sentence I found on the CAB site was - “A court can rule that there is an unfair relationship between you and the creditor. They can change the terms and conditions of your agreement, or they can rule that the creditor can’t force you to stick to the agreement.” With £700 billion at stake, which do you think the court is most likely to do?

The CAB gives the most likely reasons that your agreement might be considered unfair;

• you have been charged interest at an exceptionally high rate
• the creditor gave you wrong or misleading information, or didn’t give you enough information when you were deciding whether to take out the loan
• the creditor failed to make a proper assessment of whether the loan was suitable for you
• the creditor didn’t fully take into account how your age, experience, physical or mental health would affect your ability to enter into a credit agreement or to keep up with payments.

You can get a free consultation at the CAB and they will tell you whether your claim will be likely to work. You can also complain directly to the Financial Ombudsman Service. If they agree that the agreement was unreasonable, they have the power to order the creditor to pay you compensation and to put the matter right. Total cost to you? Nothing.

Beware the wonderful offer, the promise of immediate gratification, the snake-oil salesman with the panacea. Ask yourself these important questions;

1. Do I feel my greed awakening?
2. Does this feel like it could solve my desperation quickly?
3. What would happen if everyone took this offer at the same time?

If you are happy with your answers, proceed with caution. If not, use the money to get one step closer to being debt free.