NO CCA OVERDRAFT ITS OFFICIAL (according to HBOS)

[UnmoderatetheNet]

My friend received this in response to a CCA for a bank overdraft.

To clarify the position on this matter, it appears that you are proceeding on a false assumption. Section77 of the consumer credit act 1974 refers to linear credit agreements such s unsecured personal loans. Current accounts with overdrafts are covered under section 74.

Section 74(1) (b) of the consumer credit act 1974 provides that the procedures under the act for the execution and signing of a agreement do not apply to an overdraft on a current account. It follows that being exempt from the requirements in part V of the act that there will be no documented agreement and section 77/78 does not apply. Please find enclosed a copy of your application form for the above account which is bearing your signature. This is all we are required to provide for a bank account.

This bit is really interesting

For the avoidance of doubt, the Consumer credit act 1974 does not prohibit collection activity when an account is in dispute

 

So sending a copy of signiture as well as name and adress is enough?

[Lula]

you dont have a cca for an overdraft, they are quite right

[veester]

So does this mean if an overdraft is equal to the amount of chages being claimed you cannot stop them taking enforcement action while cases are on hold?

 

Or am i missing something here?

[UnmoderatetheNet]

I would dispute this.....

As you will be no doubt be aware overdrafts are subject to the Section 77 of the Consumer Credit Act, the case Coutts & Co v Sebestyen [2005] EWCA Civ 473 clearly highlights this fact.

........but now i'm confused as well?

[42man]

Useful thread here... -

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/31515-ccas-overdrafts.html

[UnmoderatetheNet]

your right useful thread and the other one on CCA overdraft the final wordis also good

 

but what is the deal with CCA requests ??????????

 

What do they have to supply?

 

Nobody seems to have any idea what a bank needs to supply for a CCA request for an OVERDRAFT.

 

Also I thought if you are applying fro bank charges/overdraft charges to be refunded this puts the account into dispute until the OFT ruling next year????

[Lula]

OK for Clarification, to a certain extent an Overdraft is subject to the CCA but Only as far as it says that an OD does not need a signed agreement for it to be covered.

 

Now, as far as collection on a disputed account is concerned, no, they are not supposed to do this at all, give me a while and I will search for a letter that you can send them.