Egg credit card agreement terminated

[toymaker1]

I am interested in s98 as I am not sure of its meaning ?

 

Hi cosalt

 

S98 of CCA 1974 makes it clear, at S98(5) that it does not apply to accounts which are in default. Accounts in default are covered by sections 86 87 and 88.

S98(a) makes it clear that S98 only applies to agreements which have a specified duration. Therefore it is clear that termination of an account S98 cannot be applied to credit card accounts, which do not have a specified duration - they are open ended in duration.

Hope that is clear.

 

regards

Peter

[BEC01]

Hi again, yes but they defaulted me 10 months after they had terminated my agreement ?

 

Well, I don't see how they can dafault you when they have terminated the agreement.

 

That is very naughty, to say the least.

 

Hmmmmm.

Interesting.

 

This would appear to be a very clear situation, unless I am missing something rather obvious?

[cosalt]

Another thing, before they terminated me for the first time I had never even been 1 day late with a payment or ever over my credit limit.

[cds]

subbing

[BEC01]

Another thing, before they terminated me for the first time I had never even been 1 day late with a payment or ever over my credit limit.

 

I don't think it would have mattered if you had, as long as you didn't default on the account.

 

Toymaker has answered some of the other legal points very well.

 

I personally can't see that they had any right to anything with respect to you, and you had no obligation to them, after the 35 day notice period.

 

It just seems to be such an obvious blunder that they have made, that I am tempted to think that there is a bit of financial legislation that we are missing out on.

 

If not, then we need to formulate an action plan for all consumers who had their contracts terminated, yet Egg continued to enforce their terms.

 

What Egg should have done was to change the terms to that of withdrawing card access - as this looks to be all that they were doing.

 

By stating that they are ending the agreement, they have potentially got themselves into a bit of a muddle.

[militantconsumer]

Although this is toymaker1's thread, I would like to point out to people who are trying to avoid paying the outstanding balance that there is another argument that may render the agreement unenforceable - early Egg card agreements did not include the prescribed term "credit limit" - instead they mentioned an "approved limit".

 

A different angle, but more ammunition, and worth mentioning here.

[BEC01]

Although this is toymaker1's thread, I would like to point out to people who are trying to avoid paying the outstanding balance that there is another argument that may render the agreement unenforceable - early Egg card agreements did not include the prescribed term "credit limit" - instead they mentioned an "approved limit".

 

A different angle, but more ammunition, and worth mentioning here.

 

Thanks militant.

 

Although I think toymaker's point is that there is no outstanding balance as the agreement no longer existed. This is something much more clear cut unless I am missing on something.

 

In terms of contract law, it is very, very simple and quite astonishing to read something like that.

 

Financial law is another kettle of fish altogether; by I am at a loss to see how this could interpreted any way other than I am at the moment.

[cosalt]

militantconsumer said:

Although this is toymaker1's thread, I would like to point out to people who are trying to avoid paying the outstanding balance that there is another argument that may render the agreement unenforceable - early Egg card agreements did not include the prescribed term "credit limit" - instead they mentioned an "approved limit".

 

A different angle, but more ammunition, and worth mentioning here.

 

 

Ive got the 'approved limit' as well

 

There is another thread going on this somewhere.

 

BigEddieChek said:

Thanks militant.

 

Although I think toymaker's point is that there is no outstanding balance as the agreement no longer existed. This is something much more clear cut unless I am missing on something.

 

In terms of contract law, it is very, very simple and quite astonishing to read something like that.

 

Financial law is another kettle of fish altogether; by I am at a loss to see how this could interpreted any way other than I am at the moment.

 

I am hoping someone more senior on here will pop in and give an opinion.

 

Can we alert them some how ?

[BEC01]

I should also point out that I am not in favour of people "getting out of paying" anything that they owe.

 

I am strongly against the way that some of the banks have blatantly disregarded the law. For this they should be penalised, and the consumer compensated. This is a very important principle.

Edited January 27, 2009 by BigEddieChek
Grammar!!!!

[cosalt]

I should also point out that I am not in favour of people "getting out of paying" anything that they owe.

 

I am strongly against the way that some of the banks have blatantly disregarded the law. For this they should be penalised, and the consumer compensated. This is a very important principle.

 

It is a fair point.

 

I think you will find the great majority of caggers are here because they have got into difficulty with repayments, and the creditors are completely unsympathetic to their plight.

 

This is certainly the way I found cag, I was desperate after years of irresponsible lending and high interest / charges finally took there toll.

 

There will always be a handfull of people who think this is an easy way to get out of their obligations.

 

I am just glad I found cag, I have a long long way to go I know but I can now see a way forward

[militantconsumer]

Here is the relevant thread about possible unenforceability of early Egg Card agreements:

http://www.consumeractiongroup.co.uk/forum/egg/177463-response-our-egg-cca.html

 

steven4064 states that it is unenforceable due to not having the prescribed terms.

 

He also states:

Enforceability (for agreements signed before Dec 2006) depends on only 2 things - having an agreement with your signature and having an agreement with the prescribed terms. After 2006, you have to persuade a judge on a case-by-case basis.

 

I'm not in favour of people getting out of paying back money they borrowed either. But in the case of my friend we have a situation where

A) PPI was blatantly pushed in an inappropriate way via their website and

B) a highly misleading loan agreement was created that hid the true cost of the PPI

Totally unreasonable, she couldn't afford it all, has paid a fortune in interest, and been defaulted. In those circumstances why shouldn't it all be written off? Egg deserve it.

 

All IMHO.

 

Sorry for taking your thread a little off topic, toymaker1.

[BEC01]

..

 

militantconsumer said:

Here is the relevant thread about possible unenforceability of early Egg Card agreements:

http://www.consumeractiongroup.co.uk/forum/egg/177463-response-our-egg-cca.html

 

steven4064 states that it is unenforceable due to not having the prescribed terms.

 

He also states:

 

 

I'm not in favour of people getting out of paying back money they borrowed either. But in the case of my friend we have a situation where

A) PPI was blatantly pushed in an inappropriate way via their website and

B) a highly misleading loan agreement was created that hid the true cost of the PPI

Totally unreasonable, she couldn't afford it all, has paid a fortune in interest, and been defaulted. In those circumstances why shouldn't it all be written off? Egg deserve it.

 

All IMHO.

 

Sorry for taking your thread a little off topic, toymaker1.

 

I agree, they do deserve to be stood up to.

Their tactics are reprehensible.

Edited February 2, 2009 by BigEddieChek
Not necessary.

[militantconsumer]

It is absolutely awful and leaves them extremely exposed should one person decide to take it to court.

 

I think toymaker1 might be the one person!!!

[BEC01]

I think he is waiting for Egg to take him to court?

[cosalt]

I have to wonder how many people have challenged this and either won or settled out of court that we don't know about.

 

I mean egg would hardly want it public knowledge that they had messed up and may have asked for some form of confidentiality in return ?

Edited January 27, 2009 by cosalt
spelling !

[BEC01]

They may well have.

I would doubt if anyone has challenged this though.

[phatram]

Secure message sent,

 

Would you be so kind as to send me a copy of the Termination notice for my Egg card and also would you please send me a copy of the credit agreement for the account.

I understand that under the Consumer Credit Act 1974 (Sections 77−79) I am entitled to receive a copy of the credit agreement on request. I authorise you to take the £1 fee from our savings account which represents the fee payable under the Consumer Credit Act.

I understand a copy of our credit agreement should be supplied within 12 working days.

I understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

I look forward to hearing from you.

Mrs P:)

[BEC01]

So, after chewing this over a bit more.

 

A contract has been ended, but the threat of punitive action (a default or other marker on a credit file) exists if payments are not continued.

 

This is very, very serious stuff.

 

I'm going to explore this further with my advisers, and will report back.

 

As mentioned elsewhere, I would guess that should anyone be - or have been - successful with this, there would be some kind of "gagging" order in the settlement.

 

Would still be keen to hear the views of any more financially aware members.

[cosalt]

My egg account has just been passed to Collect Direct DCA. I need to send them a letter in response, not sure what to say at the moment ?

[militantconsumer]

Cosalt has decided to stop paying his Egg Card account because his agreement does not contain the prescribed term "credit limit" but intead has an "approved limit" (whatever that is). A few of us are in the same boat, and it is discussed over on this thread.

http://www.consumeractiongroup.co.uk/forum/egg/177463-response-our-egg-cca.html

 

Post #29 is a copy of the letter that Cosalt is referring to from DCA Collect Direct.

 

I would respectfully suggest that help and suggestions on how to proceed are posted over on the above thread.

 

And that this thread is kept for Toymaker1's case of not paying his Egg Card account because Egg have "terminated" his account without a default, entirely outside the provisions of the CCA 1974.

 

These are both very interesting but different reasons for non payment, and they should probably be discussed in different places to avoid confusion.

[cosalt]

Cosalt has decided to stop paying his Egg Card account because his agreement does not contain the prescribed term "credit limit" but intead has an "approved limit" (whatever that is). A few of us are in the same boat, and it is discussed over on this thread.

http://www.consumeractiongroup.co.uk/forum/egg/177463-response-our-egg-cca.html

 

Post #29 is a copy of the letter that Cosalt is referring to from DCA Collect Direct.

 

I would respectfully suggest that help and suggestions on how to proceed are posted over on the above thread.

 

And that this thread is kept for Toymaker1's case of not paying his Egg Card account because Egg have "terminated" his account without a default, entirely outside the provisions of the CCA 1974.

 

These are both very interesting but different reasons for non payment, and they should probably be discussed in different places to avoid confusion.

 

Just to clarify, we have two accounts, on the other thread I am dealing with my wifes card which has been defaulted and terminated, I requested a copy of the CCA and got the unenforcable one.

 

My comments on this thread are because my card was terminated last year without default, now has been defaulted and terminated again. I requested a copy of the CCA and got terms and conditions no CCA.

 

Also I have stopped paying because I have no money, not due to any dispute. Although in a way having no money has been a blessing in disguise as otherwise I would have just carried on paying blissfully ignorant to all this !

[BlueSquirrel]

Just a random question about ending agreements, can a bank end your credit card agreement because your current account is overdrawn. I can't see that the CCA provides for this.

[BEC01]

No, but I think overdrafts have different legislation to credit cards?

Edited January 29, 2009 by BigEddieChek
misread initial post!!!!

[BlueSquirrel]

No, but I think overdrafts have different legislation to credit cards?

 

I paid some money against my credit card which was meant to pay off my overdraft. They then shut down my credit card because of the overdraft and wouldn't transfer the money from the credit card to sort it all out. So they ended by credit card agreement and bounced everything on my current account. So due to one incident everything has spiralled out of control as I cannot get at the money that was meant for the current account. I tried to explain that although I accepted responsibility for the initial mistake, their failure to help had caused a deadlock that I couldn't get out of. I didn't get anywhere. I am making a complaint as I was left holding on for 20 minutes and then was told "no one will speak to you because you are in arrears." And that my file was being passed to the Fraud department. ? Very scarey and inept behaviour for a major bank but we shouldn't be surprised by this now, should we?

 

Anyway sorry to hijack thread, I will set up a new one on this. Thanks for the reply.

[BEC01]

Just discovered something new about the termination agreement today.

Will not go into detail as it is not in the best interests to publish it at the moment.

 

But Egg very clearly know they made a mistake with this letter.