Important New Loan Regulations

[exchange]

OFT Loans.pdf

 

I haven't seen this posted elsewhere but think it is important enough to warrant publicity.

 

New legislation came into force on 1 October 2008, part of which concerns fixed sum credit agreements (i.e. loans) which states that all lenders must send out an annual statement for all new loans, but also an annual statement for loans which pre-date the 1 October 2008 by the 1 October 2009 and every year until the loan expires.

 

In my case MBNA have not complied. If you look at Section 9 the creditor cannot enforce the agreement nor is the creditor entitled to charge interest if a creditor does not provide the annual statement when he is required to do so!

 

Wanted to bring this to peoples attention so sorry if it is on here somewhere else.

 

Exchange

[exchange]

And if the site team think this should be posted under a different forum then I bow to superior knowledge;).

[the_shadow]

[ATTACH]13473[/ATTACH]

 

I haven't seen this posted elsewhere but think it is important enough to warrant publicity.

 

New legislation came into force on 1 October 2008, part of which concerns fixed sum credit agreements (i.e. loans) which states that all lenders must send out an annual statement for all new loans, but also an annual statement for loans which pre-date the 1 October 2008 by the 1 October 2009 and every year until the loan expires.

 

In my case MBNA have not complied. If you look at Section 9 the creditor cannot enforce the agreement nor is the creditor entitled to charge interest if a creditor does not provide the annual statement when he is required to do so!

 

Wanted to bring this to peoples attention so sorry if it is on here somewhere else.

 

Exchange

 

Hi Exchange a couple of questions..... even tho is doesnt affect me I'm a nosy so and so

 

1. What regs is this under CCA2006?

2. If the creditor after realising its mistake suddenly restarts annual statements are they still unable to enforce?

 

S.

[exchange]

Hi the shadow, I haven't had time to dig into all the what ifs and they probably need testing anyway as this is all new. The OFT attachment explains it but it surely opens another can of worms for the creditors:D.

[exchange]

Sorry, to answer the question the new regs were in the CCA 2006 but only came into force from 1 October 2008.

[cupcake68]

Sorry to sound dumb but.......

 

We took out a loan in Dec 2007 and we were under the impression they were misbehaving because we have not received a statement from them yet.

 

Is this wrong?

[AA99]

For the first time in 26 years, I received an Annual Statement from my bank yesterday

[maxedout]

Exchange, sorry that this is nothing to do with this thread and prob sounds a bit dim of me but what do you mean by Account properly terminated and in dispute. Thaks Maxedout.

[ukaviator]

A new Section 77A in the 1974 Act requires lenders under regulated fixed sum credit agreements, to give their borrowers a statement within a year, starting on the day the agreement is made, and thereafter at intervals of not more than one year.

 

Statements must continue to be given until the credit is fully repaid or settled. This obligation applies to existing as well as new agreements.

 

For new agreements implementation is 1 October 2008. For agreements in existence on that date, transitional provisions require the first statement to be given within a year. The creditor may not charge for issuing these statements.

 

Here is the full Legislation:

 

http://www.opsi.gov.uk/si/si2008/uksi_20082826_en_1

[diddydicky]

and then we get into the old familiar teriitory of what constitutes "enforcement"

 

dear oh dear- i do wish they would clear up one pile of **** before dropping another one on the floor

[exchange]

Totally agree dd!

Maxedout, 'Account properly terminated and in dispute' simply means that the correct procedure has been gone through by the CCC in that they have issued a default notice (although it may be defective) and then sent a letter terminating the account. I have put the account 'in dispute' because the agreement is unenforceable. Hope that answers it for you.

Exchange

[jedbird]

Hope this is not a stupid question but if the Debt has been passed onto a DCA should the statement still be issued and if so from whom? DCA or OC?

Thanks.

[exchange]

I would not see any reason why it must not still be issued. By who depends on whether or not the debt has been assigned to the DCA is my understanding.

[exchange]

http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=13473&d=1256049145

Bumping this to bring it to everyone's attention again.

[exchange]

bump

[exchange]

bump again.

 

If you don't get a statement as prescribed you can dispute a loan as detailed in the link.

 

I think it's important!

[AA99]

bump again.

 

If you don't get a statement as prescribed you can dispute a loan as detailed in the link.

 

I think it's important!

 

 

That's got to be one of the most recent amendments to CCA1974 but why has it taken us so long to get to grips with this act? Is there a template letter to query this, and put the account in dispute, for example:???:

[diddydicky]

That's got to be one of the most recent amendments to CCA1974 but why has it taken us so long to get to grips with this act? Is there a template letter to query this, and put the account in dispute, for example:???:

 

the first annual statement is not due yet on old agreements so there cannot be any cause for complaints on this issue just yet!!

[exchange]

Yes they are! They were due 'within one year from 1 October 2008'!!

See section 2.2 in the OFT 'Post contract information requirements' above.

[exchange]

AA99, this was something added in the 2006 ammendments which has only just come into effect.

[diddydicky]

Yes they are! They were due 'within one year from 1 October 2008'!!

See section 2.2 in the OFT 'Post contract information requirements' above.

 

so they are- so i apologise unreservedly.