CCA, What are the prescribed terms?

[Andy9012]

Hi All

 

I'm sorry about this but i have had a good look through the site but I can't seem to find a definitive list of what the prescribed terms that a CCA must adhere to, to constitute a proper true executed agreement.

 

Can anyone enlighten me / provide me with a link?

 

Thanks in advance

Andy

[Josie8]

The prescribed terms specified in Sch 6 are as follows:

• amount of credit – see Q8.
  

 

• credit limit – see Q8.5
  
• rate of interest – see Q8.6
  
• repayments – see Q8.9.
  

[Andy9012]

Thanks Josie!

 

Another question; do you know how points 1 & 2 would relate to a credit card agreement?

 

Cheers

Andy

[powelll]

Thanks Josie!

 

Another question; do you know how points 1 & 2 would relate to a credit card agreement?

 

Cheers

Andy

 

Yes they would

[sequenci]

it depends on when the agreement was taken out.

 

please let me know if it was pre or post 1.5.98

 

thanks

[Andy9012]

Thanks chaps, it was post 98. Just a bit confused how a credit card cca would show amount of credit and repayments - obviously I can see it would have the credit limit

[sequenci]

Thanks chaps, it was post 98. Just a bit confused how a credit card cca would show amount of credit and repayments - obviously I can see it would have the credit limit

 

It would state the credit limit.

 

The minimum payment would usually be stated as a percentage of the overall balance, usually between 2 and 4 percent or £5 (usually) as a minimum.

 

It MUST state the interest rate, not just the APR.

 

It would need to state info about repayment obligations, if the date of the first payment is tied to the date of the agreement and the agreement is not dated, or the creditor fails to delete weekly/monthly, as appropriate, it is lacking the necessary prescribed term and is totally unenforceable.

 

The reason the date is important is that agreements have to be set out in a particular way. The Consumer Credit (Agreements) (Amendment) regulations 2004 [sI 2004 No 1482] expanded the information that must be included. These are non-prescribed terms and without them an agreement could be unenforceable without the leave of the court. If you have an agreement you can scan and pop up we can give it a look and let you know our thoughts

 

[Andy9012]

Thanks sequenci,

 

This is for my mate, i haven't done my cca's yet. His is a monument agreement and it's the same as Davefirewalkers, there's no creditor signature, no credit limit, no apr - so I'm sure that it is unenforcable..

 

What I am trying to get my head around is that Josie said these are the prescribed terms:

 

"The prescribed terms specified in Sch 6 are as follows:

• amount of credit – see Q8.
  

 

• credit limit – see Q8.5
  
• rate of interest – see Q8.6
  
• repayments – see Q8.9."
  

I am wondering how amount of credit and repayments relate to a cca for a credit card. Do we work on the fact that credit limit and rate of interest are the relevant prescribed terms to look out for on a CC CCA and amount of credit and repayments should be ignored as not applicable to a CC CCA??

[sequenci]

The repayments would be set as a percentage of the overall outstanding balance. As an example my credit card has a repayment of 2% of the balance or £5, whichever is greater. It should be set in the agreement when the payment will be taken and the frequency of payments (i.e. weekly or monthly).

 

The agreement would also state the initial credit limit

[Andy9012]

Great! Thanks Seq, I got it now i think! So sorry to be a pain disregard point 1 amount of credit for CC CCA's as point 2 credit limit is basically the same thing??

[Zimmie]

Hi, I've been reading this thread with interest. I requested a copy agreement from Egg to find out what my credit limit was. They sent the agreement and it seems to have all the terms set out...but under the bit about Limits it states

 

'We will tell you from time to time the Approved Limit we have set and, if different, the Individual Limit hich you have chosen for the Account.'

 

It does not show an actual amount...does the above sentence cover what is required for credit limit?

[vinegarvera]

just subscribing, I too have the same CCa from Egg!

[Andy9012]

Unfortunately I don't think you will have any joy, have been looking at the OFT statement on this and 8.5 says:

 

 

"8.5 What is meant by ‘credit limit’?

Sch 6 para 3 applies to running-account credit agreements. In such cases the agreement must include a term stating the credit limit or the manner in which it will be determined, or that there is no credit limit. This is also required by Sch 1 para 8 – see Q3.10.

The credit limit may, by virtue of Sch 1 para 8, be expressed as a sum of money, or a statement that the credit limit will be determined by the creditor from time to time and notified to the debtor, or a sum of money together with a statement that the creditor may vary the credit limit from time to time and notify the debtor. "

 

However I am only just getting my head round all of this myself so hopefully someone will come along to correct me.

 

http://www.oft.gov.uk/shared_oft/reports/consumer_credit/oft786a.pdf

 

I found this on the sticky here:

 

http://www.consumeractiongroup.co.uk/forum/general-debt/83035-guidelines-requests-original-agreement.html

 

I missed this before I started the thread but I suppose at least it is there for all to see now

[sequenci]

ok folks, let me investigate the whole credit limit thing and get back. it may be that i'm mistaken or that the document i was trained from is incorrect. i'll take a look right away!

 

reading through the info given in that statement it sounds like it might be ok for a credit limit to be expressed in writing from time to time?

 

i'm confused too!

 

edit: one of the senior people here have just reconfirmed what the OFT publication states.

[Zimmie]

Thanks Sequenci, very much appreciated as I don't have a clue what my credit limit was, and I never received any communication from Egg about it.

[sequenci]

Thanks Sequenci, very much appreciated as I don't have a clue what my credit limit was, and I never received any communication from Egg about it.

 

I'm trying to rack my brains about my own personal Egg credit card, I know that the credit limit is displayed via their internet "Egg Money" account, although I appreciate not everyone has access to the net and the time to do it!

 

As far as I've found out; If they do not state that credit limit at the start of the agreement they have to explain how they will calculate your limit. if the limit is variable they have to point that out too. If they do decide to vary the limit they should inform you in writing. [lloyds did this to me last week in fact]