Should borrowers run away from their debts?
Many people today who have outstanding loans including those who own credit cards experience some form of financial stress. Those who have accumulated debts usually feel the pressure of having to pay back what they owe and may experience anxiety when they cannot afford to pay on time. This negative emotion will continue to haunt them if they fail to make their payments going forward.
In the USA, some 100,000 borrowers are attempting to stay away from paying their debts. Difficult as their situation might be, sometimes or even oftentimes they wish they could just escape from their financial troubles with less effort. But can they really do so? Is there a way to get out of debt without having to pay?
Early next year, the answer to this question will be known when a decision is made on the so-called influential test. It is the Manchester High Court judge that will make the announcement on January 7 about the findings of a test case that may signal the possibility of borrowers not being required to repay their debts.
This particular case is aimed at resolving disputes involving borrowers who do not want to pay their debts for reasons that lending companies failed to comply with the Consumer Credit Act. For the numerous borrowers who have availed of loans, many have refused to pay their debts saying that their lenders were not able to provide a valid copy of their original loan agreement. Under the Consumer Credit Act, lending firms including banks are required to provide a legal and true copy of the loan contract to their customers when they request for it.
Currently, there are many cases lined up for hearing across the USA but are still awaiting the judgment of this highly influential test case. In Manchester alone, some 100 similar cases are now pending while district courts have also put on hold the same cases. Local courts want to make sure they have the necessary guideline on what information banks and lending companies should provide their clients. The issue that’s been in question is what makes a true copy of the loan agreement.
In the meantime, those still planning to take out personal loans notably the unsecured types should think twice before applying. It’s a fact that many people are easily attracted to these loans including the payday and cash advance loans due to the convenience in the application process and the fast approval. But borrowing money requires financial responsibility on the part of the person obtaining a loan. Being a responsible borrower is the right attitude especially during these uncertain times in our society.
Although you may find loopholes in the operations of short term lenders, it’s not right to just rely on that issue to escape your debts and not pay your financial obligations. From the time you apply for payday or cash advance loans, you should already be aware of your responsibility. In other words, by borrowing money you should commit to paying it back on time as much as possible and not to take out several loans at a time.