Can I ask a question?

If something is deemed unenforceable does that mean that the creditors have no option to simply stop asking for payment. Do they have to stop interest. Is the amount wiped off or the account closed.

My questions are probably way off the mark but just wondering what happens 'at the end' of the process.

Bare with me, just trying to learn ;D

[Susie]

Re: Can I ask a question?

Not an answer for you to rely on, but from what I have read and tried to learn
Creditors do not stop asking for payment, they just cannot enforce the account in court.
I think once its sold on or defaulted the interest stops
The amount is still outstanding and does not get wiped off, but at 6 years from when they were posted the defaults will drop off your credit record and the account will be statute barred, at which point theoretically you should hear no more but it has been known for some very naughty DCA's to try and get debts paid after that date!

I await the God (only god I believe in!!) Niddy coming along to correct me!!

[Never-In-Doubt]

Re: Can I ask a question?

If something is deemed unenforceable does that mean that the creditors have no option to simply stop asking for payment. Do they have to stop interest. Is the amount wiped off or the account closed.

My questions are probably way off the mark but just wondering what happens 'at the end' of the process.

Bare with me, just trying to learn ;D

Hiya

The principles are quite simple, really.

Unenforceability basically means the lender or their agents (DCA) cannot take formal action against you. Formal action means court - so they cannot take you to court and apply for a charging order/ccj etc etc. s.127 of the CCA prohibits such from occurring (see my signature for details).

So what does happen, and what is the legal standing? Ok, nothing happens - you're at a stalemate, meaning that you have requested the CCA, the lender has not sent it or if they have, then the prescribed terms were not intact, so you utilise unenforceability and issue a final response basically saying go and swivel, to the lender/dca.

So at that the lender has two choices, risk court or just hassle you to pay for the next god knows how long. Usually they will sell the debt to a DCA and get them to bug you, but you then respond to the dca saying refer back to the lender as it is UE and this puts them in their place. Then the lender sells to another DCA and same occurs...

The legal standing is that the debt does exist and upon the lender finding the compliant CCA (only if it ever existed) then it comes out of UE state and they can then take formal action. However, assume they never find the CCA then it remains UE for 6yrs from date of default at which point is is then statute barred and the default will also vanish - meaning there is no trace of it ever existing, unlike a IVA/BR whereby it is viewable on trust online forever - albeit, settled/spent.

Interest can be added at any time, however once defaulted the only amount due is the default amount, you can ignore any additional charges.... however technically, charges (interest) stops once sold to a dca so it is sometimes best to deliberately stop paying a debt, let it default and be sold to a DCA then pay it back - works out cheaper lol

Hope that helps, even so, susie gave a good interpretation - well done