Are overdrafts covered by cca's

[robinredbreast]

Update .... on this ...

 

With all the confusion, I wrote to experian to ask why they have registered a current account on my credit record, with a payment profile. As I thought that only regulated debts were shown on an individuals credit profile.

 

Perhaps they could explain ?

 

This is the response I received today ...

 

"Our Ref: xxxxxxxxxxx

 

Dear xxxxxxxxxxxxx

 

Thank you for your email, which we received on 22 June 2010.

 

RE: Your credit report

 

SUMMARY:

 

- I am not qualified to offer you legal advice, but as I understand it, overdrafts are covered by sections of the Consumer Credit Act, since they are a form of credit.

 

- This is why your credit report only shows information about overdraft balances and not the amount you are in credit.

 

 

FURTHER INFORMATION:

 

If you have a question about your creditworthiness, your CreditExpert membership includes a free ?Frequently Asked Questions? feature.

 

If you would like to look at this, you will need to log in at Free Credit Report, Credit Rating Check & Fraud Alerts from Experian Credit Expert and go to the FAQ?s tab at the top of the page.

 

Kind regards

 

Howard I Taylor

Customer Service Officer

 

Customer Support Centre

Experian Interactive

 

 

Finally, did you know that our website can answer questions and queries about your credit report? Simply go to Experian - Most commonly asked questions for help and advice about your credit report, including how to understand it and improve it.

 

Experian Limited, a company registered in England and Wales with registered number 653331 and whose registered office is at Landmark House, Experian Way, NG2 Business Park, Nottingham, NG80 1ZZ"

 

End of the arguement .... maybe ????

 

Edited June 28, 2010 by robinredbreast
typo

[UnmoderatetheNet]

RR

 

I would look at the letter on the GLC web site (after the SC ruling) and see if there are any points in it worth incorporating in your suggested letter.

 

Good luck!

 

BD

 

 

Can someone post the letter on here might be useful and save folk time.

[disgruntled2007]

Can someone post the letter on here might be useful and save folk time.

 

yes please! Ive browsed the GLC site and cant find it....

[means2anend]

Interesting ....especially in the light of the defence that the bank has put up in the Sharp case that ''the banking contract was not covered by CCA 1974'' and that therfore overdrafts are not covered...if not covered then why report to Experian...it's all so hypocritical and could that letter not be used as some form of evidence presentable in the Sharp case....

 

m2ae

[UnmoderatetheNet]

Interesting ....especially in the light of the defence that the bank has put up in the Sharp case that ''the banking contract was not covered by CCA 1974'' and that therfore overdrafts are not covered...if not covered then why report to Experian...it's all so hypocritical and could that letter not be used as some form of evidence presentable in the Sharp case....

 

m2ae

 

I'm not sure it could be used at this stage but i'll cut and paste in this afternoons recess, unless someone beats me to it, or its been taken down.

[Mozz1]

subbing. thx

[threadbare]

A thought occured to me ....

 

Don't creditors require your written authority to process your data with CRAs .... without exception ... ?????

 

What about demanding a copy from your bank as part of your complaint, together with a copy of the agreement as reqd under the CCA ?

 

Don't CRAs only record information regarding regulated agreements ... ? (correct me anyone if I'm wrong ... as I'm not 100% sure on that .. but thought I'd throw it in .. ).

 

What with confirmation from the CRAs that ODs are partially regulated, your written authority required for processing data, and throw in a dodgy DN too (if you have one) ... may make them think twice with any court action ....

 

Worth a punt ?

 

TB

[vacma373]

A thought occured to me ....

 

Don't creditors require your written authority to process your data with CRAs .... without exception ... ?????

 

TB

Not true, bullit point 6 of Data protection act schedule 2 allows unathorised processing of your data because:

it is for the pursuit of the legitimate interests of the data controller

 

By all means have a 30 minute free session with a lawyer to check if it`s a runner, only then threaten Court action.

 

Best of luck with your situation:-(

[sussex1]

Hi

 

sorry for hijacking thread, but am getting harrased by barclays re a current account that hasn't been used for reciving a salary for well over 6 years..it had a £900 overdraft and they contacted me at an address to say charges had taken this to over £1000. I arranged to pay £20 a month and then received this

 

http://i297.photobucket.com/albums/mm223/sussex1/140710-1.jpg

 

the payments had hardly reduced debt but they did statte overdraft now agreed at £1030. I couldn't make any payemtns and now have had this termination notice

 

http://i297.photobucket.com/albums/mm223/sussex1/1-1.jpg

 

http://i297.photobucket.com/albums/mm223/sussex1/2-1.jpg

 

letter dated 6th July giving till 20th to rectify.

 

My first question is as to whether this is properly executed as there seems no allowance for postage as with CCA's on credit cards?

 

secondly I am now gettin bombarded with calls the last of which was offering me a loan to pay it (which I can't afford to pay). Isn't this sgainst the usual guidlines?

 

I would appreciate anyones thoughts on the above as well as to how best to proceed here.

 

apologies again for posting on someone elses thread

 

thanks in advance

[chattanooga]

You should remove the personal info from those images, acc no. etc.

[davidoneman]

hi im getting alot of hassel from barclays as well , ive sent afew request for signed agreement but they keep saying not regulated under consumer credit act , what would be the best way to sort it out with them ? cheers

[Mozz1]

Hi David. I am in a similar with HSBC. You need to write to Barclays pointing out that whether your agreement is covered by the CCA 1974 or not, you request a true copy of the executed customer retail agreement, a true copy of the original overdraft agreement and a true copy of the facility letter.

 

I have been learning quite a bit about this just recently. The issue, for an overdraft, is if Barclays can evidence proof that they have complied with the OFT's Determination exempting overdrafts from the CCA 1974. If they can't prove this (ie your agreements and a copy of the Determination they signed) then the overdraft is technically invalid.

 

Of course, Barcrap will have signed the Determination but you are within your rights to put them to proof and to get the info you require about the agreements. Try an SAR as well.

 

Finally, report them to the Lending Standards Board if they persist in not sending you a true copy of the agreements. Also the FOS, who deal with individual issues (the LSB just investigate banks internally, but if enough mud sticks...!)

[BornAgainBiker]

from reading this thread i understand that overdrafts are only partially covered by the CCA.

 

In a 'nutshell' can somebody please advise the following,

 

If a creditor cannot produce a copy of an overdraft agreement, can payment be enforced in a court of law?

 

thanks BAB

[the_shadow]

from reading this thread i understand that overdrafts are only partially covered by the CCA.

 

In a 'nutshell' can somebody please advise the following,

 

If a creditor cannot produce a copy of an overdraft agreement, can payment be enforced in a court of law?

 

thanks BAB

 

There are no certainties in the british justice system (just read around a few of the threads on here!) but if argued correctly a lack of "facilitation letter" alongside other key docs being missed from the evidence "should" be enough to stop enforcement subject to the "judge lottery" etc etc.

 

(Think thats enough use of quote marks )

 

S.

[The Debt Star]

Banks must provide a customer with something in writing at the time the agreement is concluded details of the credit limit if any, the annual rate of interest and any charges available and the process for terminating the agreement. Typically banks make such information readily available via a variety of media on an ongoing basis, and therein lies the problem. They send out 6 monthly facility letters.

[the_shadow]

Banks must provide a customer with something in writing at the time the agreement is concluded details of the credit limit if any, the annual rate of interest and any charges available and the process for terminating the agreement. Typically banks make such information readily available via a variety of media on an ongoing basis, and therein lies the problem. They send out 6 monthly facility letters.

 

well I would argue that if we apply carey vs hsbc to that then all variations to that original facilitation letter must be provided in response to the s78 as well.

 

S.

[The Debt Star]

well I would argue that if we apply carey vs hsbc to that then all variations to that original facilitation letter must be provided in response to the s78 as well.

 

S.

 

Totally, yeah.

[landy_alert]

Hi everyone:)

 

Sorry to jump on board here, but I'm about to send the CCA request under s78 to LTSB for an o/d and wondered if anyone could advise which address I should use please?

 

I was thinking either the registered office or 125 Colmore Row, Birmingham?

 

Many thanks for this very useful thread, btw

 

Landy x

[BornAgainBiker]

thanks shadow.

 

can you or anyone tell me of any legal cases won by creditors or debtors so i can read up on the cases. i feel i may be taken to court soon over a 28k barclays overdraft and need all the advice to fight my corner i can get. in short, i cca'd them, no response, then defaulted them, now i got their dca chasing me. thanks

[the_shadow]

thanks shadow.

 

can you or anyone tell me of any legal cases won by creditors or debtors so i can read up on the cases. i feel i may be taken to court soon over a 28k barclays overdraft and need all the advice to fight my corner i can get. in short, i cca'd them, no response, then defaulted them, now i got their dca chasing me. thanks

 

There are a few cases on here where the banks just back down when challanged but thats for small amounts (less than 1k etc), your amount would normally mean a multi-track case which would be very very expensive to lose due to court costs. If you are going to challenge you may want to seek legal advice.

 

Either way start a thread in the legal section for others to advise.

 

S.

[Gaznkaz08]

well had an update today on one off the acc's, after a bit of letter tennis. Barclays can't provide DLC/hillesdean with the required paperwork, so the acc's on hold with nothing else going to happen unless the correct doc's appear. (never gonna happen)

 

and the default fell off the credit file last month as well

 

 

just had the same letter as above re our other account,

 

thats 2 OD debts with hillesdean/DLC, they were to dense to even look at what the actual debt was for,(even referred to it as a loan acc at one point ) so they have given up for now as they can't get any paperwork

[BornAgainBiker]

thanks shadow, can you tell me how i find my way to 'the legal section' thanks BAB

[jdes26]

just gota say find this thread very good indeed!

[jdes26]

so....

1. They wont give an agreement as they say its not covered by the CCA 1974

 

2. They issue a DN which says its covered by the CCA 1974 via sections 76[1] 98[1]

 

THEY ARE SO TWISTED those banks

[jdes26]

“PART VA CURRENT ACCOUNT OVERDRAFTS

 

Information to be provided on a current account agreement

 

74A.—(1) This section applies to a current account agreement where there is the possibility that the account-holder may be allowed to overdraw on the current account without a pre-arranged overdraft or exceed a pre-arranged overdraft limit.

(2) The current account agreement must include the following information at the time it is made—

(a) the rate of interest charged on the amount by which an account-holder overdraws on the current account or exceeds the pre-arranged overdraft limit,

(b) any conditions applicable to that rate,

© any reference rate on which that rate is based,

(d) information on any changes to the rate of interest (including the periods that the rate applies and any conditions or procedure applicable to changing that rate), and

(e) any other charges payable by the debtor under the agreement (and the conditions under which those charges may be varied).

(3) The account-holder must be informed at least annually of the information in subsection (2).

(4) For the purposes of subsections (2) and (3) where different rates of interest are charged in different circumstances, the creditor must provide the information in subsection (2)(a) to (d) in respect of each rate.

(5) Subsection (3) does not apply where the overdraft or excess would be secured on land. ”.

22. After section 74A (information to be provided on a current account agreement), as inserted by regulation 19, insert—

“Information to be provided on significant overdrawing without prior arrangement

 

74B.—(1) Where—

(a) the holder of a current account overdraws on the account without a pre-arranged overdraft, or exceeds a pre-arranged overdraft limit, for a period exceeding one month,

(b) the amount of that overdraft or excess is significant throughout that period, and

© the account-holder has not been informed in writing of the matters mentioned in subsection (2) within that period,

the account-holder must be informed in writing of those matters without delay.

(2) The matters referred to in subsection (1) are—

(a) the fact that the current account is overdrawn or the overdraft limit has been exceeded,

(b) the amount of that overdraft or excess,

© the rate of interest charged on it, and

(d) any other charges payable by the debtor in relation to it (including any penalties and any interest on those charges).

(3) For the purposes of subsection (1)(b) the amount of the overdraft or excess is to be treated as significant if—

(a) the account-holder is liable to pay a charge for which he would not otherwise be liable,

(b) the overdraft or excess is likely to have an adverse effect on the debtor’s ability to receive further credit (including any effect on the information about the debtor held by a credit reference agency), or

© it otherwise appears significant, having regard to all the circumstances.

(4) Where the overdraft or excess is secured on land, subsection (1)(a) is to be read as if the reference to one month were a reference to three months.”.

23. In section 77A (statements to be provided in relation to fixed-sum credit agreements) after subsection (8) insert—

“(9) This section does not apply where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.”.