What does this mean for UCA?

[Flex-Finance]

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High Court decision on debt loophole dashes write-off hopes for thousands - Times Online

About 100,000 people trying to have their credit card and loan debts written off by exploiting a legal loophole will have to pay the full amounts they owe after a landmark court ruling this week.

The High Court decision will mean defeat for tens of thousands of similar county court cases, which have been put on hold until the test case involving Royal Bank of Scotland (RBS) was resolved.

The ruling will also suffocate the multimillion-pound industry in debt avoidance that has expanded rapidly in the past 18 months as consumers struggling to keep up repayments are seduced by attractive claims.

Many of the UK’s 3,000 Claims Management Companies (CMCs) attract clients with promises that they can exploit legal loopholes to write off certain unsecured debts, most commonly personal loans and credit cards.

[Michael_Anthony]

Yet another well planted story, probably by RBS's PR people.

My sources, who are well connected within the UCA claims industry, tell me that the bulk of recent rulings have been against the lenders and that this has given them the confidence to continue their business expansion plans.

There are concerns that hearing dates are starting to stretch well into the distant future though, so any business that is banking on payouts from court rulings funding their continued operations is now reconsidering its position.

The ones that can cover their costs through initial upfront client fees will remain in the best position for the short term (6-12 months).

In my humble opinion, of course

[Mogga]

Morally should people be let off their debt? Isn't it rather unfair on those that haven't splurged.

Lack of responsibility (political and persona) has taken this country to the brink of financial disaster.

[Flex-Finance]

Morally should people be let off their debt? Isn't it rather unfair on those that haven't splurged.

Lack of responsibility (political and persona) has taken this country to the brink of financial disaster.

Cant disagree on the morality aspect (especially as a lender) but its a legal issue. The main thing I object to is a stream of legislation that are in favour of consumers while being damaging to business. People are being handed more and more ways to dodge their responsibilities.

Look at the new debt relief orders.