Statements on fixed sum agreements

[Dinkjames]

A few questions for the legal eagles (and other parties) on here.

 

I have two fixed sum agreements. One is enforceable and the 2nd is doubtful.

 

Having read parts of the CCA1974, I was particularly interested in sec 77A. Consumer Credit Act 1974 (c. 39) - Statute Law Database

 

It states that a creditor must give the debtor a statement within one year of the agreement starting and every year thereafter.

 

I have never had a statement showing the outstanding debt or the payments made on either agreement. Both agreements were entering into beginning 2005.

 

My questions:

1 Would sec 77A(6) now apply to these agreements?

 

If they did not meet their obligations under this section, then they cannot enforce the agreement whilst they remain in breach?

They cannot charge interest during the time that they breached?

The debtor does not have to pay the default amounts during the period of the breach, even if the breach is remedied?

What happens if the creditor issues a default notice during the period of breach and terminated the agreement?

 

I am sure there are many of us out there with fixed sum agreements who have never received a statement of indebtedness from the creditor over the term of the agreement. As long as you keep paying, the creditor leaves you alone. Is this a new can of worms or has it been discussed before?

 

Advice appreciated.

[smouk]

Subbing!

[the_shadow]

A few questions for the legal eagles (and other parties) on here.

 

I have two fixed sum agreements. One is enforceable and the 2nd is doubtful.

 

Having read parts of the CCA1974, I was particularly interested in sec 77A. Consumer Credit Act 1974 (c. 39) - Statute Law Database

 

It states that a creditor must give the debtor a statement within one year of the agreement starting and every year thereafter.

 

I have never had a statement showing the outstanding debt or the payments made on either agreement. Both agreements were entering into beginning 2005.

 

My questions:

1 Would sec 77A(6) now apply to these agreements?

 

If they did not meet their obligations under this section, then they cannot enforce the agreement whilst they remain in breach?

They cannot charge interest during the time that they breached?

The debtor does not have to pay the default amounts during the period of the breach, even if the breach is remedied?

What happens if the creditor issues a default notice during the period of breach and terminated the agreement?

 

I am sure there are many of us out there with fixed sum agreements who have never received a statement of indebtedness from the creditor over the term of the agreement. As long as you keep paying, the creditor leaves you alone. Is this a new can of worms or has it been discussed before?

 

Advice appreciated.

 

Hmm I have to say unfortunately I always tend to choose the lender who sends these statutory requited docs

 

I think its a point you may consider mentioning to a lender when the time is right ;-)

 

S.

[Dinkjames]

Fortunately, Tesco don't and have terminated the agreement on the back of a dodgy DN.

 

MBNA don't either

[Dinkjames]

Anyone care to comment on this from a legal perspective?

[someone_else]

I'm sure I've read somewhere that they have until Oct09 to produce the first yearly statement, I'll see if I can try and find where I saw it.

 

EDIT: Here you go from OFT site: http://oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft1002.pdf

 

2 STATEMENTS

Statements for fixed-sum credit agreements

2.1 From 1 October 2008, creditors will be required by section 77A of the 1974 Act5 to provide debtors with annual statements in relation to regulated agreements for fixed-sum credit, such as loans and hirepurchase.

2.2 For agreements made on or after 1 October 2008, the first statement must be given within a period of one year beginning on the day after the day the agreement is made.

For pre-existing agreements, the first statement must be given within one year from 1 October 2008.

 

Thereafter the creditor must give the debtor further statements at intervals of not more than one year, until there are no sums which are or may become payable under the agreement.

Edited June 15, 2009 by someone_else