Novation?? Any one heard of it?

[greatburdon]

Received an email from an outfit who go under the name of secretloophole (I am not going to post links as I have no wish to promote what might be a duff product)..My understanding is they use a 'loophole' by sending a token payment to the admin dept. of a creditor which if banked absolves the debtor from any further payment?

 

 

 

-------------------------------------------------------------------------

 

"Credit Card Debt? Cancel It!"

 

Any number of cards.... any amount of personal debt!

 

Please note that this debt elimination system (DES) has nothing to do with the Compensation Act 2006 as we do not provide financial advise or a claims management service regarding reclaiming bank, credit card charges or claims regarding unenforceable credit agreements. Our program uses a powerful legal litigation technique called Novation. For a full explanation please visit: Novation - Wikipedia, the free encyclopedia If link does not work just copy and paste into your web browser.

 

We do not give legal advice however we supply the information in down loadable ebook format via email to include the knowledge, philosophies and template letters necessary to cancel out your credit card balances on all credit cards or personal loans.

 

Legally Eliminate Credit Card Debt or Personal Loans

 

If you fit in any of the following categories the program is designed for you:

 

* You cannot afford paying your credit card bills.

 

* You have no incentive for paying your credit card bills.

 

* You can tolerate negative entries on your credit report for as much as a year.

 

* You would like another chance, but do not like the idea of filing for bankruptcy just because of credit card debt.

 

We do not recommend people attempt termination of credit card debt without competent assistance. Banks and credit card companies have very clever officers and lawyers and can instantly recognize when you do not fully understand what you are doing. In such case you can be easily defeated. However, we can assure you that we offer the finest quality information.

 

Our program enables each individual to finally take control of their financial life and stop drowning in credit card debt without the need for bankruptcy.

 

STOP making debt payments immediately [/b]

[reallymadwoman]

I will admit that, having read the Wiki entry, I have no idea how this company might apply this tactic, but it sounds extremely unlikely to work.

 

I would use the general rule that if it sounds too good to be true ....

 

No doubt someone with a better understanding of this particular process will comment. The fact that I've never come across it before despite long membership and extensive reading of this forum would suggest that it's not really a viable option.

[Jasper1965]

The criteria for novation comprise the obligee's acceptance of the new obligor, the new obligor's acceptance of the liability, and the old obligor's acceptance of the new contract as full performance of the old contract.

 

Therein lies the problem.

 

 

Can you honestly see any bank agreeing to the transfer of your contractual obligations to a third party who presumably for the purposes of profitability has no intention of repaying the debt?

[rameses_qc]

It's applicable in U.S Law. It has no real tested standing in the UK I'm afraid

In anycase I agree, it wouldn't work.

[UnitedFront]

Looks too good to be true. I wouldn't trust that information as far as I could throw the person who came up with it.

[UnitedFront]

It's applicable in U.S Law. It has no real tested standing in the UK I'm afraid

In anycase I agree, it wouldn't work.

 

I was thinking that.... I'm studying contract law at degree level at the moment and I can't see any reference to novation in any of my text books!! Now I know why

 

Cheers.

UF

[mkb]

The criteria for novation comprise the obligee's acceptance of the new obligor, the new obligor's acceptance of the liability, and the old obligor's acceptance of the new contract as full performance of the old contract.

 

Therein lies the problem.

 

 

Can you honestly see any bank agreeing to the transfer of your contractual obligations to a third party who presumably for the purposes of profitability has no intention of repaying the debt?

 

 

This is something that Basil & Amanda Rankine use to con people into using them so I wouldn't touch it with an extreeeeemly long bargepole

[the_shadow]

I was thinking that.... I'm studying contract law at degree level at the moment and I can't see any reference to novation in any of my text books!! Now I know why

 

Cheers.

UF

 

Hmm interesting... novation is something used in service contracts all the time, we have contracts at work with third parties whilst were working on behalf of another company, at the end of our project we novate the third party contracts direct to the other company with everyone's mutual consent... all under english law as I understand it.

 

S.

[IdaInFife]

http://www.consumeractiongroup.co.uk/forum/legal-issues/239905-credit-card-killer-[problem].html

[rameses_qc]

Hmm interesting... novation is something used in service contracts all the time, we have contracts at work with third parties whilst were working on behalf of another company, at the end of our project we novate the third party contracts direct to the other company with everyone's mutual consent... all under english law as I understand it.

 

S.

 

Yes, novation is a concept used, I think, mainly in construction. However, the concept being used or applied to debts and credit agreements has not been tested. In fact almost all credit agreements prohibit the debtor from assigning the contract to a 3rd party, so that wouold kill it stone dead as far as I can see

[harrassed senior]

Would this be the same as 'quit claim' as used to transfer mortgage debt in the US?

[the_shadow]

Yes, novation is a concept used, I think, mainly in construction. However, the concept being used or applied to debts and credit agreements has not been tested. In fact almost all credit agreements prohibit the debtor from assigning the contract to a 3rd party, so that wouold kill it stone dead as far as I can see

 

Absolutely, I would warn anybody away from this forthwith, its doomed to fail. Just pointing it out it has legal basis in this country.

 

S.

[UnitedFront]

Hmm interesting... novation is something used in service contracts all the time, we have contracts at work with third parties whilst were working on behalf of another company, at the end of our project we novate the third party contracts direct to the other company with everyone's mutual consent... all under english law as I understand it.

 

S.

 

Hmmm.... when I go back next week, I'll speak to my lecturer.... I'm only in the first year so maybe it's something we learn about later on. As has been said, this is surely doomed to fail in the context of debts etc.

 

But still something I would be interested to learn about.

[lilly white]

Assigning A Debt Or Benefit Of Contract?

 

It is important to first provide the debtor with a notice of the assignment!

 

Other points and issues that should be borne in mind:

 

· In principle, the benefit of a contract can be legally assigned without consent,

provided there is no express prohibition on assignment or, for example, a requirement that consent

is obtained.

 

 

· Where there is no restriction on assignment, the usual way of assigning the benefit of

contractual rights is by statutory assignment. The assignment must be in writing, signed by the

assignor, absolute (not purporting to be by way of charge only) and notice in writing must be

given to the other contracting party (section 136, Law of Property Act 1925).

 

· If a contract is not effectively assigned under statute, it may still be assigned under

common law by an equitable assignment. An equitable assignment may exist where the requirements

for a statutory assignment are not satisfied. The main practical consequence of an equitable

assignment is that the assignee cannot bring an action in its own name against the third party,

but must fall back on the rules governing equitable assignments and join the assignor as a party

to the action.

 

It is, in any event, desirable for notice of an assignment to be given to the third party because

the third party will otherwise be entitled to continue to make payments to the assignor. Notice

will give the assignee priority over any other assignee that has failed to give notice, provided

there is no knowledge of such prior assignment.

 

 

[lilly white]

· The burden of a contract cannot be assigned. It is therefore necessary to novate, rather

than assign, certain contracts. Novation is, in effect, the rescission of one contract and the

substitution of a new contract in which the same acts are to be performed but by different parties.

 

 

[rameses_qc]

· The burden of a contract cannot be assigned. It is therefore necessary to novate, rather

than assign, certain contracts. Novation is, in effect, the rescission of one contract and the

substitution of a new contract in which the same acts are to be performed but by different parties.

 

 

 

Exactement

[Kraken1]

although a burden can be assigned, if such a benefit, which is the point of the assignment, is contingent on that burden. For eg use of a road can be contingent on paying for its upkeep.

 

Novation is a fairly standard english law thing, but not necessarily something that comes up at undergraduate level. it is hard enough drilling offer and acceptance, breach, and a handful of cases into drink and hormone addled minds....

 

Add in the postal rules and then stuff goes 'pop' and someone in the third row will doze off...

 

Mrs Carlill was worried about the flu so purchased.... sigh....

[lickthewallfatboy]

one word rings multiple alarm bells

 

"wikipedia"

 

Absolutely not to be taken at face value- the amount of crap posted on there which masquerades as fact is shocking

[DonkeyB]

This is a tool for debt evasion. CAG does not condone debt evasion.