Are Direct Line/RBS Loan agreements usaually CCA compliant and enforecable?

[Bigdebtor]

I have been looking through many threads but see little or no mention of Direct line.

 

I have been sent a signed copy of my Loan Agreement.

This was for £15k - now just over £5k outstanding and all in arrears which I now can't afford to pay due to illness causing my self employed business to collapse, and now totally reliant on my wife's earnings.

 

 

This loan was taken out in May 2003 and on looking at what the "prescribed terms" should be I note my agreement states "Loan amount" instead of the required "Amount of Credit".

 

 

I also can't see anything about the following CCA 1974 requirement:

"The manner in which any of the number, amount, date and frequency of repayments may be determined; or in any other way, and any power of the creditor to vary what is payable".

Do either of these make it unenforceable?

 

Also they refuse to take the £50 pe rmonth I have offered after advice from CCCS and their lawyers Spratt Endecot are threatening to take me to court.

 

 

They had previously offered a short settlememnt of 75%

- but I have been successful in getting other creditors to accept between 35% and 50% (That was before I knew to ask for agreements under CCA 1974).

 

Any advice from more experienced caggers welcome.

Edited May 4, 2017 by dx100uk

[Pinky69]

"Loan Amount" suffices as a prescribed term and the phrase about variability doesn't pertain as the repayment will be fixed. The easiest way to get more accurate advice is to scan the agreement on here blocking out all your personal details and we can have a look at it.

 

I had a 15k loan from Direct Line and they wrote it off. The calculations were wrong and 3 pages of a 5 page agreement were missing. There were no Terms and Conditions and no statements.

[Bigdebtor]

Pinky

 

Many thanks for this.

 

 

I have had a closer look at what I have been given and I have pages 1 and 3 of 3 - but no page 2.

 

 

I also note I have "agreed" to the terms of the offer and in the T&C's booklet.

 

 

I shall now check if the quoted APR of 7.4000% is correct based on the required monthly repayments and ask them to provide the missing info, including the T&C's pertaining at that date.

 

What happens if they can't give me the missing page or a true copy of the original T&C booklet?.

 

BD

[Pinky69]

If there is a page missing it is unenforceable - they would have to produce the original of the agreement in court. They must also give you a copy of the original Terms and Conditions. If they try to fob you off with current conditions that is not on. There would be no original T&Cs to say the conditions can be varied.

[Bigdebtor]

Pinky

 

Thanks for this. I'll now ask for the missing info PDQ.

 

BTW did you have a major fight to get the £15k written off?

 

I am really surprised to see that there has not been much more on threads about Direct Line Loans as I have found them the most intransigent creditor I have currently.

 

BD

[Pinky69]

There was very little exchange of letters. There wasn't much they could do with 3 pages missing and the calculations out by the legally accepted limits ( not more than minus 0.1% and plus 1%) and they knew I knew what I was talking about and I wasn't going to pay them. I then got a letter to say the account was closed.

[Bigdebtor]

Pinky

 

Thanks for that. I have just checked the interest charged and it seems to be more or less right. They quoted £2872.20 interest based on 7.4000% APR on £15000 repaid over 60 months and my spreadsheet (not too sophisticated) worked out it should be £2775 at 7.4%. I make £2872.50 equate to 7.66% APR - which is only 0.26% more - and I am also not sure I have got the absolutely correct formula.

 

Is this within acceptable limits or is my spreadsheet not sophisticated enough? If any cagger has a spreadsheet that works it out like Direct Line I'd appreciate them checking this out.

 

However I have just noticed the repayment schedule which states one repayment of £297.87 due 1 month after agreement date "but we will collect repayments in accordance with your instructions".

 

This raises two interesting points.

 

1. It was a DD - so they chose when to take the repayments - not me. I never actually instructed them to take any further repayments apart from signing a DD mandate (at least I think I did?).

 

2. What if I had said - take the monthly payments on the 4th of each month starting in January 2099? I am sure my great great grand kids would be pleased to pay the current equivalent of an ice cream every month to help out their long departed great great grandpa!

[Pinky69]

Doesn't sound as if you have anything to go on there. The calculations seem to be within the legal limits and signing a DD was you giving them permission to take the scheduled repayments as they became due. Had you wanted to change the date of payments, you could have. It's beginning to look as if the missing page and no copy of the T&Cs is your dispute with them, plus they must give you copies of statements saying what you have paid and what remains to be paid.

[Bigdebtor]

Thanks Pinky

 

I kinda thought that - but hoped I could make a bit of mischief for them;).

 

However I guess I could tell them I am exercising my right to and now instruct them that they can collect the remaining monthly payments any time they like after January 2099? Although I suppose some strait laced Judge might not think it any funnier than Direct Line's lawyers!

 

I did get the statement - so it looks like it's down to the missing page and T&C's.

 

Thanks again

 

BD