Over 100,000 people have attempted to get credit card debts and loans cleared off by using legal loopholes – but now a Judge’s decision seems to have closed the door for them.

The people owing the money have been trying to get their debts declared “unenforceable” because, for example, a credit agreement was worded incorrectly or could not be produced. But now a judge in the Commercial Court has ruled that even when an agreement is found to be “unenforceable”, this does not mean that a borrower was no longer liable for the debt.

Consequently, the borrower is not entitled to have their credit record wiped clean and the lenders still have the right to appoint debt collectors to recover payment.

A spokesperson for the lending industry said, “Some borrowers took out loans fully understanding what they were doing and properly borrowed the money. They have been trying to get the loans written off by using a technicality and that’s a cynical practice”.

We agree.