2009- got PPI back - had to sign new agreement - is that right?

[orfoster]

Hello,

 

I wonder if you can help me....

 

Back in 2009 I was awarded a settlement through the Ombudsman for PPI with a bank for a loan. The bank was ordered to put me in a position had I not taken out the PPI so they set me up a new account, new number, new loan amount, new payment amount etc but DID NOT ask me to sign a new agreement.

 

I've repaid the debt now but want to know under the CCA 1974 section 82 here (http://www.legislation.gov.uk/ukpga/1974/39/section/82). Should they have got me to sign a new credit agreement???

 

Thanks

 

O

[orfoster]

Can anyone help me?

[AndyOrch]

Depends if it was a continuation of the old agreement...just redrafted.,,,but if its paid why worry?

 

Andy

[Peterbard]

Section 82 would apply if any of the terms of the agreement were varied, so yes if this was a fixed sum loan i would say that a new agreement should have been signed as the total credit would be different at least.

 

However if the new agreement was after Aprll 2007, their would be no unenforceable sanction for this error. The penalty would reflect the prejudice suffered by the debtor, if this was just the total credit I cannot see a court saying that this was a major factor, however if the interest or APR for instance was increased their may be a case for challenging it.