Sister v LLoydsTSB Credit cards.

[rory32]

Why did you send a CCA request if you are reclaiming charges?

[rory32]

Well if they don't have a copy of the agreement the debt is unenforceable. They can however offset the charges you are reclaiming against the account, so there are really only two reasons for reclaiming charges if an agreement is unenforceable:

 

1. If the charges are more than the amount owing on the account (remember you can charge interest at the contractual rate on cc charges)

2. If you are planning on offering a reduced full and final and are looking to reduce the balance of the account before making the full and final offer.

[rory32]

If the debt is unenforceable, then surely that means there is no debt as such.

 

Not quite. The debt still exists it's just the case that the debt could not be enforced in a court of law, so it's then her choice whether she pays the account or not. She may wish to offer a low full and final settlement at some point if there is no agreement (say around 10%) on the basis that in return they remove adverse entries on her credit record.

 

How old is the account? If it's over 6 years old they may not have a copy of the credit agreement.

 

I would guess it is better to wait and see if they have the original CCA, then think on the options

That would seem like the best idea, yes.

[rory32]

I added in cash advance fees, that ok to do that?

 

No as the fee is actually for a service e.g. the cash.

 

And am I right in thinking we don't add in the interest they charged her each month?

 

You can charge interest on the penalty charges at the same %age rate as the card.

[rory32]

It's just an application so is not enforceable as a credit agreement.

[rory32]

Was there no letter at all with the copy of the application form? Ideally you want them to confirm in writing that this is a copy of the credit agreement. I would write back to them and ask them to confirm that what they have set you is indeed a copy of the agreement. They would then not be able to produce something else later as a copy of the agreement (this is unlikely as they've probably given you all they've got).

[rory32]

I think a simple letter would be better. Ideally if they are happy that this is a copy of the agreement then you should accept it as such, but point out once they have confirmed that it is that it isn't enforceable.

[rory32]

Might Opalie send the letter under cpr 4.6?

I understand where you are coming from Shane, but don't feel it would be appropriate at this stage. A simple statement from the creditor confirming that what they have supplied is a copy of the credit agreement will suffice.