Overdraft - Can I CCA them?

[weller711]

Hi folks

I have/had a large OD with a major highstreet bank - they passed the debt over to a DCA whilst still addding interest. I CCA'd the DCA who never responded then out of the blue I have received a letter from the bank offering me a third off the debt and i can also pay it in 3 monthly installements if I require - which obvioulsy I cannot afford.

 

So back to my main question, are OD's within the remit of being able to request a CCA - I originally signed a form for a basic account, a couple of years later it was upgraded but I didn't sign anything for this to be done - then an OD was added which they kept increasing. I also havent signed anything for the OD

 

Any advice much appreciated

Edited July 29, 2008 by weller711

[42man]

One word answer is YES !! Do CCA them....

[weller711]

Thanks, does this mean that if they cannot provide an agreement for the OD (the original opening of the basic account was taken out in 2001) the debt is unenforceable?

[42man]

Overdrafts are covered by the Consumer Credit Act, I would send them a CCA request and see what comes back....at least it puts the account in dispute, also are there any excessive charges to claim back ?

[weller711]

Yes, I claimed back the charges and they just deducted it from the amount outstanding but they are or have been adding interest of approx £300 per month

[42man]

I would send the CCA and state that the account is in dispute....

[weller711]

Has anybody any more thoughts on this please?

[tooth_fairy]

I am currently waiting for a response to my CCA to Arrow Global who are acting on behalf of LTSB for an overdraft that was made up of illegal charges, I have been going through the charges proccess with LTSB but it was put on hold pending the test case.

 

No CCA has yet been provided for me, so I think, YES, you should CCA them and await their response, overdrafts are covered by the CCA.

 

Out of interest and you do not have to answer, which bank is it and do you think you have illegal charges which could possibly be reclaimed?

[weller711]

I dont mind at all - its the Halifax and I have reclaimed charges but they wanted to use them against the OD if that makes sense so, perhaps stupidly, I didn't sign the form agreeing to accept them. I argued and argued but they stuck fast to their offer that the charges must be used against the OD.

[tomterm8]

I am currently waiting for a response to my CCA to Arrow Global who are acting on behalf of LTSB for an overdraft that was made up of illegal charges, I have been going through the charges proccess with LTSB but it was put on hold pending the test case.

 

No CCA has yet been provided for me, so I think, YES, you should CCA them and await their response, overdrafts are covered by the CCA.

 

Out of interest and you do not have to answer, which bank is it and do you think you have illegal charges which could possibly be reclaimed?

 

The problem with overdrafts is while there is some limited information required by a CCA request, the information is very much more limited than a normal credit agreement, and in almost all cases copies of statements / letters sent are sufficient proof in court.

[weller711]

Would I be able to procced as I haven't had any letter whatsoever regarding the OD, in fact the only agreement I signed was for a basic bank account with no credit facilities.

[tomterm8]

Would I be able to procced as I haven't had any letter whatsoever regarding the OD, in fact the only agreement I signed was for a basic bank account with no credit facilities.

 

You do not have to sign a document for an overdraft to be enforceable.

[weller711]

i appreciate the fact that I did not have to sign anything regarding the OD but the Halifax have also not sent my any documentation relating to the OD, to say I could have one, the repayment terms etc etc. Surely they would need to do this to make the debt enforecable, in fact, surely for any sort of credit to be made available some sort of process has to be carried out?

[tomterm8]

i appreciate the fact that I did not have to sign anything regarding the OD but the Halifax have also not sent my any documentation relating to the OD, to say I could have one, the repayment terms etc etc. Surely they would need to do this to make the debt enforecable, in fact, surely for any sort of credit to be made available some sort of process has to be carried out?

 

To a degree, but these would be provided to the court anyway. You are MUCH better off going for a S.A.R. and getting ready to reclaim your charges.

[weller711]

Just wondered if anybody else could give me an opinion on this, thanks

No disrepect to TomTerm though

[bengateway]

In a very similar situation myself. D.C.A I was paying stopped sending repayment books and when phoned I was told they no longer had any interest in the debt .

12 months later a different D.C.A pick up the debt but the balance has gone up. A cca request was sent and 5 months down the road I have recieved a copy of the application form to open the account, signed by me, and dated over 17 years ago. No explanation as to how they got to the balance there asking for so a S.A.R will be my next move.

From my viewpont they need to substantiate the debt balance exists. and also the amount being claimed. Until this is done the debt is in dispute.

Tomterm is pointing the way forward but I ,like you will be watching this thread for more comments.

[pt2537]

Agree Totally with tomterm8

 

truely excellent advice as always, the CCA 1974 while it does cover overdrafts, does not give the provisions to the debtor to make the debt unenforcable in the way that it does with normal Credit agreements

 

you would most certainly be better off going after the Penalty charges levied against the account and if they make up any default notice then you can go for the default to be removed as there is a high chance hte default will be unlawful as per Woodchester -v- Swain

 

regards

paul

[weller711]

Any more thoughts please..............................

[pt2537]

not sure that there is any more advice that can be given on this subject to be honest

[weller711]

I've been looking at this thread

 

http://www.consumeractiongroup.co.uk/forum/general-debt/111275-overdraft-debt.html?highlight=cca+overdraft

[Curlyben]

I would completely agree with TT on this.

Get a SAR into the bank and go for the charges.

 

For the DCA here's a nice letter:

 

ACCOUNT IN DISPUTE

 

Dear Sir/Madam,

 

Your ref:

 

 

Thank you for your letter of **DATE**, the contents of which are noted.

 

 

I am disputing the total value of these debts with **BANK** due to unlawful and unreasonable charges. As such, therefore, I consider this account to be in dispute and no further action shall be taken until this matter is resolved.

As per OFT guidelines Section 2.8k "not ceasing collection activity whilst investigating a reasonably queried or disputed debt."

 

This process may take some time, due to the Office of Fair Trading's test case, but I will try to expedite this issue as a matter of urgency.

 

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you would prefer to do this than merely respond with standard letters and leaflets.

 

I would appreciate your due diligence in this matter.

 

I look forward to hearing from you in writing.

 

Yours faithfully

[payingonlyencouragesthem]

If you dispute the ownership of the debt they won't be able to enforce it without an agreement. I had an overdraft which I disputed because it was run up as a joint account then subsequently put in my sole name. When I challenged the DCA they threw the towel in without even checking what I said. Bottom line: it's worth CCA'ing because if they can't produce an agreement they will probably stop bothering you.

[weller711]

Thanks for that - I'm going to try it, after all - it can't really do any harm can it? Its worth a try I think.

It just suprised me that they offered a reduction of a third (and its a very, very large OD!!) to settle now or to pay in 3 monthly instalments (still with a third deducted).

[weller711]

Thanks CB - I will get that letter off to the DCA and wait and see what their repsonse is. If I SAR the bank, is the account then in dispute? Sorry I just want to make sure I'm getting it right

[Curlyben]

Simply sending a SRA doesn't put the account into dispute, but the reclaim process certainly does.