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My mother took out a loan in 2006, over 300 months, and recently asked for a statement. She received a settlement figure. The figure is more than she borrowed.
Can anyone help me to figure out if this is all above board?
Presumably its a Swift Loan?
You might be in the same situation as myself where they are using the old 'Rule of 78' to calculate the settlement figure - call them and ask them.
Its been abolished for new loans now because it is very unfair - probably why Swift use it.
However, Swift are being forced to abolish it for existing loans from May this year.
If yours is a '78, then hang fire and you should notice a drop in the settlement figure in June.
m
If the loan is an unregulated one over £25k, Swift never issue statements!
I suggest you write to Swift and request a copy of the Actuarial Accrual Account Summary.....It's the nearest thing they produce to a statement of account.
AS of April 2008 ALL lenders must send a proper statement of account not just a record of paymets but an esy to understand statement of the account.............. the Actuarial Accrual Account Summary is a very complex statement and not easy to understand, this must be sent on the anniversary of the agreement, loan, mortgage, what ever, ......each and every year until ended.
If one is not received the borrower has the right to with hold paying the instalments until one is supplied ....New Consumer Credit Act 2006.
This applies to ALL credit agreeents regulated and unregulated.
I have the greatest respect for Sparkie but I don't understand where the impression comes from that statements must be provided annually on UNregulated loans. Section 77 of the CCA says:-
77A
Statements to be provided in relation to fixed-sum credit agreements
(1) The creditor under a regulated agreement for fixed-sum credit must give the debtor statements under this section.
(1A) The statements must relate to consecutive periods.
(1B) The first such period must begin with either—
(a)
the day on which the agreement is made, or
(b)
the day the first movement occurs on the debtor's account with the creditor relating to the agreement.
(1C) No such period may exceed a year.
I am happy to admit I may be missing something but I don't see how there could be any requirement in relation to unregulated loans?
"I am happy to admit I may be missing something but I don't see how there could be any requirement in relation to unregulated loans?"
JUst to explain it is due to the fact that as of 2008 ALL new agreements are drawn into the New Act............there is no longer unregulated agreements from that date all are regulated and by using section 140 you can imply that the need for annual statements also covers other agreements ....as it would be unfair not to be supplied to the other agreement holders it could be argued discriminatory, of course these arguments have to tested in Court ...but you will see more and more case being brought under section 140 as time goes on.
In any event the OFT guidelines on non status lending advises that it is good lending practice to supply annual statements.
You have to "bend" the law in the same way as the lenders do.
If you have not received a proper statement of account, they are in default of the New Amendments of the Consumer Credit Act ........and therefore you are entitled to with hold any payment due ...they cannot apply any default ..late payment charges ..or fees of any description ...and they cannot attempt to enforce the agreement until they have remedied their default
I would put the monthly payments aside in another bank account and let it earn you a little interest, until they send you that statement of account, they are obliged to do thisunder the Act but to keep everything in order send them a specific request for it and remind them to supply it in the correct format laid down by the CCA Act
Who was your mother's broker? Was the PPI mis-sold? Was it made clear to her that it was optional? Was she working? Self employed? Did the insurance cover only the first 3 years of the loan?
We got a settlement figure when we first asked for a statement last year. Then a list of transactions when we complained. Finally we got the statement which they should issue annually (even Swift Advances have agreed this with us) on the anniversary of your account. You could always send them a Subject access request?
SJ
If you have not received a proper statement of account, they are in default of the New Amendments of the Consumer Credit Act ........and therefore you are entitled to with hold any payment due ...they cannot apply any default ..late payment charges ..or fees of any description ...and they cannot attempt to enforce the agreement until they have remedied their default
I would put the monthly payments aside in another bank account and let it earn you a little interest, until they send you that statement of account, they are obliged to do thisunder the Act but to keep everything in order send them a specific request for it and remind them to supply it in the correct format laid down by the CCA Act
sparkie
sparkie
Top of the World advice as usual sparkie. I would like to ask my lender for a statement of account but believe my solicitors have already requested this. I have received no response yet, so I think I will hold back payments and put them aside until I do get them.
This is very good stuff that you have found, and I believe it is very important that we know what we are paying, being charged and what balance is left. I have never received a statement of account from my lender, and its been two and a half years.
Great info sparkie and I am sure a lot of people will find this extremely helpful.
If you have not received a proper statement of account, they are in default of the New Amendments of the Consumer Credit Act ........and therefore you are entitled to with hold any payment due ...they cannot apply any default ..late payment charges ..or fees of any description ...and they cannot attempt to enforce the agreement until they have remedied their default
sparkie
Am I right in thinking that they cannot charge interest as well?
Am I right in thinking that they cannot charge interest as well?
NO they cannot charge interest either........the interset is part of the therms and conditions of the agreement and whilst the lender is in default they cannot enforce ANY of thos e terms and conditions..............I just have to clarify one small point.............. it is only obligatory for regulated agreements to provide an annual statement ..but under the guidelines of the OFT they say it is "advisable" for a lender to provide an annual statement of account as a matter of transparency, clarity and good business relations even on unregulated agreements as not to do so could be construed as an "unfair relationship" under section 140 of the ammended CCA 2006
1.6 The Consumer Credit Act 2006 (the 2006 Act) amends some of the
existing requirements and introduces new requirements on post-contract
transparency. These include:
• annual statements under fixed-sum credit agreements
• additional information in statements for running-account credit
• notices of sums in arrears
• notices of default sums
• additional information in default notices
• notices relating to post-judgment interest.
1.7 The new requirements come into force on 1 October 2008. There are
transitional provisions for pre-existing agreements.1
9 BREACH OF THE ACT OR REGULATIONS
9.1 If a creditor does not give the debtor an annual statement in respect of a
fixed-sum credit agreement when he is required to do so, then he is not
entitled to enforce the agreement during the period of non-compliance. In
addition, the debtor is not liable to pay any interest calculated by
reference to the period of non-compliance, or any default sum which
would have become payable during that period or which relates to any
breach occurring during the period.68
9.2 Similar consequences apply if the creditor fails to give a notice of sums
in arrears under a fixed-sum or running-account credit agreement.69
9.3 If the creditor fails to give a default sum notice, he is not entitled to
enforce the agreement until the notice is given.70 If the creditor fails to
give a notice of post-judgment interest, he is not entitled to charge
interest until a notice is given.71
9.4 Where a creditor fails – on request and upon payment of the appropriate
fee by the debtor - to provide the information required by sections 77-79
and 97 of the 1974 Act, the creditor is not entitled to enforce the
agreement whilst the default continues. If the creditor fails to provide
information relating to any security, pursuant to sections 107-110, he is
not entitled to enforce the security instrument.
9.5 In addition, the OFT and Local Authority Trading Standards Services
have powers under Part 8 of the Enterprise Act 2002 to take
enforcement action where there is a breach of legislation which harms
68 Section 77A(6) of the 1974 Act as amended
69 Section 86D of the 1974 Act as amended
70 Section 86E(5) of the 1974 Act as amended
71 Section
Lets be clear ...Unregulated agreements pre April 2008 remain unregulated agreements, the full amendments only apply to New consumer credit agreements after April 2008 when the limit was removed.
Hi Sparkie
Can you please tell me on what basis you took Swift to Court and how you got on as we are intending to issue proceedings against them as well?
Regards
Mallymoo
Another swift loan
Reply With Quote
it could be argued discriminatory, of course these arguments have to tested in Court ...but you will see more and more case being brought under section 140 as time goes on.
Originally Posted by Hmmmm
