Vanquils I am confused

[Peterbard]

OK This is resolved, it just took a complaint through the Experian link on Clear score. It was just a note explaining the law. His report contains nothing relating to this on it. 

 

I will post the leter from Experian as soon as he sends it me.

[Peterbard]

Just to be clear.

 

DCA;s pursue the terminated sum of a contract, that is the whole sum  due. You cannot do this on an un-terminated agreement, you can only pursue arrears, that is until the DN has been issued and the account terminated.

 

A lender can chase his own terminated debts without a DCA license but not any one else's. A DCA can only deal in terminated debts, these are bought and sold in portfolios sometimes consisting of thousands of accounts, if these were still live the process would be impossible. Legally they cannot receive unterminated accounts because they are not equipped or licenced to receive them.

 

The question is; do accounts placed on a dmp for extended periods have to be terminated, or can the lender still claim the account is live.  I think this would be an unfair practice and challengeable under section 140 CCA

[Peterbard]

Looking through our new and I must say improved forum. I  notice many of my old posts have been resurrected, going back to w006 when I was Peterbard. Also interesting is the amount of time I have spent on this issue,.

 

https://www.consumeractiongroup.co.uk/topic/261778-default-noticetermination-discussion-moved-from-stone-brokes-thread/?tab=comments#comment-3193324

 

Some of the other topics I discussed with others are there also.

 

At this time of night, I am not sure what that means exactly, must mean something.

 

Peterbard

 

[AndyOrch]

https://www.legislation.gov.uk/ukpga/1974/39/section/98A

[Peterbard]

Hi Andy

 

(4)Where a regulated open-end consumer credit agreement, other than an excluded agreement, provides for termination or suspension by the creditor of the debtor's right to draw on credit—

(a)to terminate or suspend the right to draw on credit the creditor must serve a notice on the debtor before the termination or suspension or, if that is not practicable, immediately afterwards,

(b)the notice must give reasons for the termination or suspension, and

(c)the reasons must be objectively justified.

(5)Subsection (4)(a) and (b) does not apply where giving the notice—

(a)is prohibited by an EU obligation, or

(b)would, or would be likely to, prejudice—

(i)the prevention or detection of crime,

(ii)the apprehension or prosecution of offenders, or

(iii)the administration of justice.

(6)An objectively justified reason under subsection (4)(c) may, for example, relate to—

(a)the unauthorised or fraudulent use of credit, or

(b)a significantly increased risk of the debtor being unable to fulfil his obligation to repay the credit.

 

Yes f course either party can terminate an agreement at any time. But that does not mean the debtor does not have to pay any sums remaining under it, nor does it mean the creditor can ignore the debtors rights under the CONTRACT to pay the loan back by instalments, nor can the creditor demand that he does.

 

This is a "none default termination", it is there to protect the lender from immanent breaches that need the ability to draw credit to be stopped to prevent imminent damage.

 

 

 

 

Peter

[Peterbard]

Sokay, dont expect to be thanked.