For most people with a reasonable income and a sound credit rating, ready access to credit has provided them with a standard of living that is the envy of previous generations. Once, the family mortgage and a loan for a vehicle were the only payments to banks or finance companies for the average wage earner. These days, however, multiple credit cards, the two vehicle household, and a relaxing of the old requirement to have a substantial deposit before being granted a housing loan, has seen more and more people in situations where hardship and credit go hand in hand.
Despite the best efforts of borrowers to repay their loans, a car or work accident, an unexpected illness or sudden job loss is enough to put many borrowers under credit stress. It is at these times, that bringing all your loan and income documentation to an appointment with lawyers Brisbane could be the start of a solution.
When hardship and credit combine to wreck the best laid life plans, the first thing to do is take action. Many people lose everything simply because they are overwhelmed by their situation and don’t know the options available to get them back on track. Credit contracts can be renegotiated in certain circumstances, allowing an extension to the payment period, a reduction in the amount to be repaid or a postponement to the payments if there is reasonable cause.
Alternative arrangements must firstly be requested of the credit provider, backed up by sound reasons. Once the request has been submitted, the credit provider must advise in writing within 21 days of their decision to accept or reject the request for changes to the credit contract. If they reject the request, they must provide reasons, and give the borrower contact details of an external resolution scheme in which they are a member, along with information about the borrower’s rights under such a scheme.
If the outcome is positive and the request is accepted, the credit provider must, within 30 days from the date of the agreement, provide written advice of the changes to the contract to the borrower and any guarantor who may be involved. It is also possible, if a person can prove that the terms of a contract at the time of signing, was unjust, unconscionable, harsh or oppressive, to apply to the courts to reopen the contract. This situation would best be dealt with by solicitors Brisbane who can act on the borrower’s behalf.
Life presents us with many challenges along our journey, and while we all hope that nothing adverse comes our way, it doesn’t take much to disrupt the most carefully thought out financial strategy. Seeking legal advice and advising the credit provider immediately are the first steps to say goodbye to hardship and credit issues.
Despite the best efforts of borrowers to repay their loans, a car or work accident, an unexpected illness or sudden job loss is enough to put many borrowers under credit stress. It is at these times, that bringing all your loan and income documentation to an appointment with lawyers Brisbane could be the start of a solution.
When hardship and credit combine to wreck the best laid life plans, the first thing to do is take action. Many people lose everything simply because they are overwhelmed by their situation and don’t know the options available to get them back on track. Credit contracts can be renegotiated in certain circumstances, allowing an extension to the payment period, a reduction in the amount to be repaid or a postponement to the payments if there is reasonable cause.
Alternative arrangements must firstly be requested of the credit provider, backed up by sound reasons. Once the request has been submitted, the credit provider must advise in writing within 21 days of their decision to accept or reject the request for changes to the credit contract. If they reject the request, they must provide reasons, and give the borrower contact details of an external resolution scheme in which they are a member, along with information about the borrower’s rights under such a scheme.
If the outcome is positive and the request is accepted, the credit provider must, within 30 days from the date of the agreement, provide written advice of the changes to the contract to the borrower and any guarantor who may be involved. It is also possible, if a person can prove that the terms of a contract at the time of signing, was unjust, unconscionable, harsh or oppressive, to apply to the courts to reopen the contract. This situation would best be dealt with by solicitors Brisbane who can act on the borrower’s behalf.
Life presents us with many challenges along our journey, and while we all hope that nothing adverse comes our way, it doesn’t take much to disrupt the most carefully thought out financial strategy. Seeking legal advice and advising the credit provider immediately are the first steps to say goodbye to hardship and credit issues.
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