Overdraft And Cca

[setmefree]

Hi

can anyone please tell me if i can requested a CCA from a debt collection agency, the debt has been passed on for non payment of overdraft and my bank closed my account coz i couldn't afford to pay them back all at once.

the reason i ask is not because i refuse to pay it, more a fact of the collection agency is being awkward.

[LAN01]

Yes, You want to make sure the are legally entitled to collect on the alledged debt, but I would also send a SAR to your bank to see if they have added any unlawful charges.

[Curlyben]

Sorry Lan01, but CCA DOESN'T cover bank accounts.

I do agree though that a S.A.R - (Subject Access Request) should be sent to the bank and start the process of reclaiming charges.

While you are doing this send a DISPUTE notice to the DCA saying that this account is in Dispute with the original creditor and as such no action can be taken.

[LAN01]

Hi

can anyone please tell me if i can requested a CCA from a debt collection agency.

 

You can CCA a DCA about an alledged debt, I suggested SAR the bank.

[setmefree]

Hi all

Thanks for advice given,i spoke to a retired barrister last night who has now assured me that i can ask for a cca on the grounds that i had an agreed overdraft. i.e. they charged me monthly for using it.

 

The cost of borrowing £1000 for 365 days is £77.5 based on a rate of 7.75% EAR

This proves that credit is applied

[diskmandave]

I absolutely agree! Whilst the CC Act 1974 doesn't cover a bank account, an overdraft is another matter, an overdraft is a small short term loan.

[setmefree]

overdraft

 

Definition

 

The amount by which withdrawals exceed deposits, or the extension of CREDIT by a lending institution to allow for such a situation.

 

i hope this helps others:)

[sequenci]

setmefree is quite correct, overdrafts are covered by the cca.

[sortingitout]

Below is an extract from

 

http://www.lacors.gov.uk/lacors/upload/5883.DOC

 

1.1 What is covered by the s74 determination?

 

A determination under s74(3) was made by the OFT with effect from 1 February 1990. It applies to d-c agreements enabling the debtor to overdraw on a current account, under which the creditor is a ‘bank’ as defined in the Bankers’ Books Evidence Act 1879, provided that certain conditions are satisfied – see Q1.5.

 

A separate determination was made in respect of certain agreements connected with the death of a person.

 

Copies of the determinations may be obtained from the OFT.

 

Agreements covered by a s74(3) determination, and satisfying the relevant conditions, are exempt from most Part V rules including s61(1) on execution. However, the Agreements Regulations will apply to any document embodying such an agreement, and to any term expressed in writing – see Q1.2.

 

1.2 Are all bank overdrafts exempt?

 

The s74 determination in respect of bank overdrafts (see Q1.4) applies subject to the following conditions:

· the creditor must inform the OFT in writing of his general intention to enter into such agreements;

· the debtor must be informed, at or before the time an agreement is concluded, of the following:

o the credit limit (if any)

o the annual rate of interest and any charges applicable, and the conditions under which these may be varied

o the procedure for terminating the agreement;

· the above information must be confirmed in writing.

 

Furthermore, where a debtor overdraws a current account with the tacit agreement of the creditor, and the account remains overdrawn for more than three months, the creditor must inform the debtor in writing not later than seven days after the end of that period of the annual rate of interest and any charges applicable.

 

But unfortunately, i have no idea what the above exactly means, other than the CC act does cover bank overdrafts in some shape or form.

[setmefree]

Many thanks for your input.

it is a complex matter that would most certainly fall in the debtor's favour.

 

if this matter was to reach court it would be a case that from the debtor's point of view that the bank placed the money into the account as a goodwill gesture.

if it was a borrowed sum then an agreement would take place.

[sortingitout]

I was/am in the same situation regarding a bank overdraft, i have since sent them a letter offering a monthly payment of £7, until such time i fully understand the relation with the CCA and overdrafts.

 

I included the following in my letter..

 

The commencement of legal proceedings now under such circumstances could be counter to the ‘Overriding Objectives’ of the new Civil Procedure Rules. You will be aware that the Overriding Objectives underpin everything the court does. Moreover, paragraph 4 of the Protocols Practice Direction states that in cases not covered by an approved pre−action protocol, the court will expect the parties “to act reasonably In trying to avoid the necessity for the start of court proceedings”.

I would rather offer them a small monthly fee, until i can sort myself out. I believe they can serve us up a CCJ at anytime (aslong as they have sent you/me a default notice) so hopefully my letter goes some way in stopping that, i also said in the letter i wouldnt be dealing with the debt agency anymore.

 

I dont know for a fact if this is the best way, but worth considering. I can pm you the whole letter if it would be any use to you.

[hellhasnofury]

subcribing:-D

[greendykes]

I too am subscribing. I CCA'd a DCA who informed me that it didn't cover the debt I am disputing because it was an overdraft! I have found the info above very helpful..still trying to draft a letter to the DCA informing them of their mistake! Plus they did not return my £1.

[Blaze36]

Sorry for bumping an old thread but this is really interesting. I'm wondering what to do myself now as I have a DCA chasing me for a student overdraft that I defaulted on in 2006. The overdraft itself was interest-free, but the amount that the DCA is asking me to pay now is MORE than the default amount so they have obviously charged interest.

 

Has anyone got a good template letter or any suggestions as to what I should write? I'm happy to offer a monthly payment to them, I'm just struggling with what to write.