First a company cold-calls you to ask if you will take a few minutes out of your busy day to answer some questions about your "lifestyle". Me? You want to know about me? I'm flattered, you will only answer if you are an airhead. Should you indulge the caller the questions will start general and then quickly they will want to know number and amounts of any loans and credit card balances you might have. They will get so personal you will probably hang up the call, but it's too late - they have you now. Your phone number and details are sold to the next caller.
The next caller is the Mis-Lending Claims company. They have heard about your debt and know a clever way you can get out of paying it. Provided your credit agreement was signed before 2007 there is a requirement it contain certain information - about 10 different pieces of information in fact. If any one of these terms is missing from the document, or the lender has just plain lost the document, then the courts cannot enforce the debt. (The post-2007 Act does not require the terms.)
So the claims company obtains your documents and scrutinizes the small print - or more usually they don't bother - the banks have taken to rolling over easily. Then the debt is gone, but there is a new one to pay the claims company; this one much more watertight.
In the process your credit rating is shot to pieces and your cards will be withdrawn and you may find it difficult to access any form of banking services in the future, but at least you got off that loan.