How long to bank etc have to hold credit ageements for?

[notsoevil]

My said in my earlier post my friend has sent a CCA request to Llyods via VLS. He has had no responce other then the acc has been put on hold. He wrote to them after the month was up informing them they are default.

No reply!

So he phoned (he is impatient and wants the matter closed) and was told by a impolite person that they dont hold record of agreements back more then 6 years and he still he has to pay. They also said they wont take legal action but may pass the debt on. As far as I knew if the debt was in dispute they are unable to move it on. Is that correct?

The Credit Consumer act says otherwise, but does it state how long loan companies etc have to hold their agreements for??????

He also just told me the debt was due to cashing cheques on guarrantee card, so in effect is possibly overdraft, but have said not to say anything about that at the mo as the bank hasnt picked up on it!

My view is to get them to put it in writing that they dont have a credit agreement. 1. do they HAVE to do this?? 2. how long do you give them for to comply with this request. 3. As this is possibly an overdraft but they havent notice it - shall I tell him to proceed on the lines of the CCA or do you think he will be getting into murky waters??

[palomino]

Current accounts don't have credit agreements and the Consumer Credit Act doesn't apply.

 

Bank account records must be retained for six years after the account is closed. If they don't have the records what does that suggest to you?

 

Unless you have explicitly told them you are disputing the matter it isn't in dispute. Assuming you have done so what were the grounds you stated?

 

I wouldn't do anything unless and until they respond. There is no point in poking a sleeping bear!

[notsoevil]

Hi! my opinion was the same! Just leave alone! but hey ho!!!

He is saying he doesnt remember exactly what the debt was for and what the prescribed terms were. Therefore asked for a copy of the CCA and there verbal reply was they dont have it as it is over 6 years old.

 

Since I have found out what the debt was for, I ofcourse know there wont a copy of CCA. But if the bank doesnt hold a copy of the current account application form.. then what??

 

I will tell him to back away for the time being anyway!

[notsoevil]

Have to change that just spoken to him (my friend) and most of the debt is for a loan and a tiny bit seems to be bank charges which he would have paid back. He got the loan during a downturn of his life, where everything was going wrong. He was under the doctor and on medication and really cant remember how much the loan was for or what he even spent it on!

 

So how long do banks have to keep credit agreements for??

 

Thanks everyone!

[saintly_1]

They should ideally hold the CCA for 6 yrs AFTER the contract between debtor and creditor ends ........

[notsoevil]

Hi Saintly! I thought that would be case as well. But if a debt has been defaulted, could you then say the contract has been ended???

 

Now I would say like you, that the contract/agreement should be held for 6 or so years after the acount is not active. But I wonder what the regulations are.

 

As my friend is trying to get the CCA (if they have it) is it acceptable for them to say the debt is too old - so basically tough and pay up??

[rory32]

 

The Money Laundering Regulations 2007

 

PART 3 RECORD-KEEPING, PROCEDURES AND TRAINING

 

Record-keeping

 

19.—(1) Subject to paragraph (4), a relevant person must keep the records specified in paragraph (2) for at least the period specified in paragraph (3).

(2) The records are—

(a) a copy of, or the references to, the evidence of the customer’s identity obtained pursuant to regulation 7, 8, 10, 14 or 16(4);

(b) the supporting records (consisting of the original documents or copies) in respect of a business relationship or occasional transaction which is the subject of customer due diligence measures or ongoing monitoring.

(3) The period is five years beginning on—

(a) in the case of the records specified in paragraph (2)(a), the date on which—

(i) the occasional transaction is completed; or

(ii) the business relationship ends; or

(b) in the case of the records specified in paragraph (2)(b)—

(i) where the records relate to a particular transaction, the date on which the transaction is completed;

(ii) for all other records, the date on which the business relationship ends.

[rory32]

But if a debt has been defaulted, could you then say the contract has been ended???

 

It's from when the business relationship ends. If they or a DCA are chasing you for money then the business relationship has not ended.

[notsoevil]

Rory you are a star!!! Just the info I needed to wack the DCA with!!!!! Thank you so much!

[saintly_1]

I knew someone would be along who knew exactly what the regulations stated

[palomino]

They should ideally hold the CCA for 6 yrs AFTER the contract between debtor and creditor ends ........

 

This isn't 'ideally'. It is a legal requirement of the money laundering regulations.

 

(The only money I've ever laundered was that fiver in my shirt pocket).

[notsoevil]

Follow on from this one. I have just spoken on friends behalf to the DCA who admitted they do not have the agreement. I explained that due to problems around the time of the loan he is not aware of what it was for. He may of made payments but just paid for a quite life. Now he wants to know what it was for, how much etc. They could not tell me, said it was not on his screen. I asked again for the agreement and he said he didnt have one. I then said where is the legal proof then that there is a debt. DCA said that the agreement with friend ended when he defaulted and it was passed to them. Now it has been over 6 years since the agreement - they do not have to keep it.

He then added why would he not be a paying a debt that he has been paying.

What now??? Another letter to them saying that as you dont have agreement blah blah? What is their likely reply to that?

 

Thanks for your help.

[notsoevil]

Any ideas?