do CCA 1974 and OFT debt collection guideline apply to current account and overdraft?

**tifo** · 28th July 2008 10:07

Does the CCA 1974 s.78 and OFT debt collection guidelines apply to personal current accounts with an overdraft?

I made my request for a refund of charges last June and they sold the account some weeks later. They offered me 80% which i refused. They then put my complaint on hold re test case. DCA is asking for the full amount which HSBC icon

were fully aware consists of charges. They said claiming charges does not put an account in dispute so they are within their rights to sell it. I would have thought the amount is definately in dispute so how can they sell that?

I am claiming charges back from HSBC and have recently sent them an 'unfair relationship' letter using CCA 2006 and s.140(A) & (B). This seems to have hackled them a bit and i received a strongly worded letter about how they will refer the matter to their solicitors as i make serious allegations and they have replied to some of my comments.

The account was closed some years ago and i have a CCJ through HSBC because i was overdrawn on an informal overdraft. The POC icon

stated 'amount due under an agreement regulated by CCA 1974'. At the time it included charges. I know there was never any formal overdraft agreement.

I made a s.78 CCA 1974 request as i said this applies to the overdraft and they would have to send me the agreement stating amount, APR etc even though it has Part V exemption in form and content.

They have come back and stated they cannot fulfill my request because the CCA 1974 does not apply to current accounts and overdrafts because of the OFTs determination in December 1989. I was under the impression from this forum that overdrafts are covered by CCA 1974 as running credit and hence s.78 applies. They are saying no.

On selling the debt while the amount is in dispute, i alleged this is against the OFTs debt collection guidelines. They have come back and said because the CCA 1974 does not apply to current accounts, neither does this guidance as it is given under the OFTs obligations to the Act. I have said they have to comply with the guidance because of their Consumer Credit License. They are saying no.

Their detailed letter would suggest that if the CCA 1974 never applied to this account then the CCJ they obtained was done by stating misleading info both to me and the court. Can i apply for a set aside icon

on this basis, as well as that the amount includes penalty charges and that i do not owe any money to HSBC now? I haven't asked them anything on the CCJ yet.

Comments and advice please?

Similar Threads:

**MilkTrayMan** · 29th July 2008 03:24

Some possible further avenues for U to consider tifo, if U haven't already done so that is...

http://www.consumeractiongroup.co.uk...t-invalid.html

http://www.consumeractiongroup.co.uk...r-trading.html

...

**tifo** · 29th July 2008 10:18

i have used the UTR's but this account is from pre-2008 so they don't apply but will do on the bank's subsequent actions.

i'm asking a simple question : does s.78 apply to current account overdrafts and do the OFT debt collection icon

guidelines apply as well?

my thinking is YES to both, as say many members, but the bank is saying NO. So i need solid evidence before i write to them again.

**tifo** · 2nd August 2008 14:40

anyone, as i have to write back to HSBC icon

and the OFT haven't replied to the same question.

**tifo** · 3rd September 2008 14:18

The OFT basically say 'no' .... s.78 does not apply.

The bank say CCA 1974 and OFT debt collection icon

guidelines don't apply. But the CCJ they have on me was under the basis that the agreement was regulated by CCA 1974.

I am saying that the Act does apply and so does s.78, unless they send me an overdraft icon

agreement under the OFT determination. They've written back to say i'm wrong.

If CCA does apply to overdrafts, their POC icon

is correct and they also need to send me an overdraft agreement. This is my position.

If the CCA doesn't apply, it means the CCJ was obtained under a false statement, and they could be in trouble for this (so i hope).

The bank's position is that the CCA does apply but OFT guidelines don't and they're not sending a copy of the overdraft agreement (i know because they don't have one).

What can i do now?

**Lula** · 3rd September 2008 14:30

i didnt think that o/d's were covered by CCA at all

**tifo** · 3rd September 2008 14:51

no, overdrafts are definately covered by the CCA and the OFT determination in relation to it. The bank themselves has used this as a basis for the CCJ obtained against me.

The case below makes this clearcut. Read 17 - 22.

Coutts & Co v Sebestyen [2005] EWCA Civ 473 (28 April 2005)

**MRS_P** · 5th August 2009 13:01

Bump, I know this is a few months old but what happened can you provide any further updates?

Will possibly help others

Ta

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does CCA 1974 s.78 and OFT debt collection guidelines apply to personal current accounts with overdraft?

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