Unauthorised Consolidation of a loan and overdraft

[F_DCAs]

An interesting question, and I have to admit I wasn't sure on this one. If an overdraft consists of unlawful charges and/or the loan is unenforceable, would this negate the whole new balance when the company adds the two balances together?

[Pinky69]

In my view adding an overdraft to a loan creates a new loan, for which they don't have an agreement.

[I've got no money]

Yes - its' still unenforceable -they can't make an uneforceable loan enforceable by just consolidating

[Helios]

What if a creditor adds an overdraft to a loan which has a enforceable agreement

 

does that make the agreement unenforceable?

[izzitme101]

i would say if the overdraft account now has the loan account number, and the loan is unenforcable, its all become unenforcable.

If its a new account number altogether, they dont have an agreement for it.

If they put the loan into the overdraft account, im not sure where to go, am waiting for barclays to try this meself.

If the overdraft is all charges, have the whole thing put into dispute and start claiming them back.

[Helios]

What if the bank puts the overdraft with the loan and the loan now has the overdraft account number

 

have they voided the enforceable agreement with loan by doing that?

[xx.Morph.xx]

Subbing with interest:D

[F_DCAs]

I think this is a question that does apply to a lot of people, and it's a practice that many banks do.

[loopyjuice]

Just a quick question if you don't mind regarding overdrafts.

 

I went into hsbc in 2000 with a large cheque and asked for a current account, the lady went into speak to the manager who apparently said "give him what he wants" and i got an account no questions asked with a debit card. I did not sign anything relating to this account, it has a £2000 overdraft which does not show up of cra searches. Does this account need a signature of mine on an agreement for it to be enforcebale?

[babybear39]

Most bank accounts are not covered by the CCA.

[F_DCAs]

Personally, I'd go along with izzitme101.

 

I'm of the opinion that even if one penny of the 'new' account is the loan, and the rest overdraft, then yes, a CCA should be applicable.

[Helios]

If a bank has lobbed a overdraft balance in with a loan, that loan has an enforceable agreement

 

i would say the bank has voided the agreement

[Helios]

Just a quick question if you don't mind regarding overdrafts.

 

I went into hsbc in 2000 with a large cheque and asked for a current account, the lady went into speak to the manager who apparently said "give him what he wants" and i got an account no questions asked with a debit card. I did not sign anything relating to this account, it has a £2000 overdraft which does not show up of cra searches. Does this account need a signature of mine on an agreement for it to be enforcebale?

 

Thats an issue always happens with HSBC and many other banks too

[creditcardmug]

My 2p worth

A new loan agreement is created...it may be to pay this or that...but the point is, is the new loan enforceable?..did you sign up for it? was it correctly executed?

 

Consolidation is just a word...a reason the banks give for the purpose of the loan, for their internal auditing procedures, nothing more.

 

If the original loan had an unenforceable agreement, and you agreed to substitute it for a new one which was correctly executed...then its tough luck, they have recovered their untenable position.

[Helios]

Bank could try there hand at a managed loan, which would make me think is there any of your debts unenforceable with the bank and it realise something is wrong

 

There is different variations to this, depends on what the OP meant

[creditcardmug]

Bank could try there hand at a managed loan, which would make me think is there any of your debts unenforceable with the bank and it realise something is wrong

 

There is different variations to this, depends on what the OP meant

 

Yes, and this is what many of them do, get the unenlightened to sign up to a fresh loan, of course fully compliant with the CCA, this way they have converted a very risky asset (risky due to their own incompetence/greed) into a cast iron one.

 

Even more so in the current climate

[Helios]

Yes, and this is what many of them do, get the unenlightened to sign up to a fresh loan, of course fully compliant with the CCA, this way they have converted a very risky asset (risky due to their own incompetence/greed) into a cast iron one.

 

Even more so in the current climate

 

Quite agree there, HSBC tried their best to shove a managed loan down my throat, had 2 debts with them, loan and credit card

 

when i did a cca request last year for the credit card, bank came back with a applicatiobn form

 

makes you think

[xx.Morph.xx]

Just checking my paperwork & I seem to have had 2 loans & an overdraft, with lots of charges, all added together to create a new total amount using one of the loans account numbers.

 

Is this legit?

[creditcardmug]

Quite agree there, HSBC tried their best to shove a managed loan down my throat, had 2 debts with them, loan and credit card

 

when i did a cca request last year for the credit card, bank came back with a applicatiobn form

 

makes you think

 

The unfortunate thing is Ive seen quite a few on here who have fallen for it:(..so its good that we are discussing the issue, to make as many as possible aware:!:

[Helios]

Just checking my paperwork & I seem to have had 2 loans & an overdraft, with lots of charges, all added together to create a new total amount using one of the loans account numbers.

 

Is this legit?

 

Make a thread on your issue, we can help you

 

if the bank has done that, sounds to me thats a new loan which they don't have any paperwork to back it up

[I've got no money]

Yes, and this is what many of them do, get the unenlightened to sign up to a fresh loan, of course fully compliant with the CCA, this way they have converted a very risky asset (risky due to their own incompetence/greed) into a cast iron one.

 

Even more so in the current climate

 

I have to say that I really know very little about this - but does section 82 (2) of the CCA affect this

 

- if so how

[I've got no money]

Most bank accounts are not covered by the CCA.

 

Even if they were - don't forget that absolute unenforceable agreements only applies to new agreements - post 2006

[creditcardmug]

I have to say that I really know very little about this - but does section 82 (2) of the CCA affect this

 

- if so how

 

Hmmmm. i see what you mean, i think the bank would argue they haven't modified anything, but merely created a new agreement, the money from which was used simply to pay off various other debts.

 

I may be wrong, im open to others interpretation.

[Helios]

I have it if the bank puts a overdraft, credit card and loan into one account, they have essentially created a new agreement

 

if you don't sign the paperwork, makes the agreement unenforceable

 

 

we have created some thread here

[creditcardmug]

I have it if the bank puts a overdraft, credit card and loan into one account, they have essentially created a new agreement

 

if you don't sign the paperwork, makes the agreement unenforceable

 

 

we have created some thread here

 

If you haven't signed it mate, its not worth diddly squat!