Overdraft debt

[fetsilva]

Hi i've been hunting here for some answers but i dont seem to be able to find anything i understand lol

 

after cca'ing a dca they have told me that they arent covered by cca

 

i have read a couple of threads that have said since they charge interest there must have been an agreement and therefore need to comply.

 

any ideas on what i should write back to them? i'm doing quite well with cc debt but this one has flumoxed me unfortunately.

 

would appreciate some ideas

[Fred_Funk]

Take a look at post 19...

 

http://www.consumeractiongroup.co.uk/forum/debt-collectors-debt-collection/84273-oft-debt-collection-guidance.html

 

... it would appear, yet again, we have a DCA which doesn't know what it is talking about. Quel surprise! ;-)

[rory32]

Bank overdrafts are covered by the CCA, they just have certain exemptions. Although a credit agreement on an overdraft would not look like a credit agreement on a credit card or loan it still needs to be provided.

 

A determination under s74(3) was made by the OFT with effect from 1 February 1990. It applies to d-c agreements enabling the debtor to overdraw on a current account, under which the creditor is a ‘bank’ as defined in the Bankers’ Books Evidence Act 1879, provided that certain conditions are satisfied.

 

Agreements covered by a s74(3) determination, and satisfying the relevant conditions, are exempt from most Part V rules including s61(1) on execution (signing of agreements). However, the Agreements Regulations will apply to any document embodying such an agreement, and to any term expressed in writing.

 

1.2 Are all bank overdrafts exempt?

 

The s74 determination in respect of bank overdrafts applies subject to the following conditions:

· the creditor must inform the OFT in writing of his general intention to enter into such agreements;

· the debtor must be informed, at or before the time an agreement is concluded, of the following:

o the credit limit (if any)

o the annual rate of interest and any charges applicable, and the conditions under which these may be varied

o the procedure for terminating the agreement;

· the above information must be confirmed in writing.

 

Furthermore, where a debtor overdraws a current account with the tacit agreement of the creditor, and the account remains overdrawn for more than three months, the creditor must inform the debtor in writing not later than seven days after the end of that period of the annual rate of interest and any charges applicable.

 

You may also wish to look at this thread http://www.consumeractiongroup.co.uk/forum/general/94575-cca-overdrafts-final-word.html?highlight=overdrafts

[rory32]

Fred hope that answers your PM.

[fetsilva]

thanks for the replies.

 

ok i've tried to get my head around all of this and here's where i'm at. please correct me if i'm wrong.

 

an overdraft still has to comply with certain conditions from the cca since the court case in 1990?

 

there doesnt have to be a regulated agreement but they still have to have sent you a letter stating the apr, credit limit etc when they gave you the overdraft?

 

you have to have signed when you opened the account or after that there was an overdraft facility on your account?

 

ok can i ask for my postal order back then or do they have to send me the above mentioned for this pound? or do i have to sar them for this stuff?

[rory32]

an overdraft still has to comply with certain conditions from the cca since the court case in 1990?

 

Yes

 

there doesnt have to be a regulated agreement but they still have to have sent you a letter stating the apr, credit limit etc when they gave you the overdraft?

 

The agreement is regulated but not in the same way as other agreements. You are correct though that all they need to send you is a letter stating the apr, credit limit etc when they gave you the overdraft.

 

you have to have signed when you opened the account or after that there was an overdraft facility on your account?

 

Yes.

 

ok can i ask for my postal order back

Not really as you have sent them a request for a copy of the agreement. As previously stated an overdraft is exempt from some sections of the Act. The obligation, however, of the creditor to provide a copy of the agreement still exists e.g. 12 workings, 1 calendar month.

[madh21]

so if you never signed anything / application for an overdraft, does this mean that its not enforceable? When I opened my account with the halifax I didnt request an overdraft, that came later. Infact, I dont recall signing for the account even, it was an upgrade from a basic account in 1993.

[vandermerwe]

Interesting. Mine was done by telephone via one of the call centres and I am currently having problems on reclaiming charges because I have never been told what the rate was.

 

The overdraft was for the enormous sum of £1000!

 

Vandermerwe