Annual Statements of Account?

[Never-In-Doubt]

Re: Annual Statements of Account?

Thanks Garlok, I read that earlier but was not sure if this included overdrafts, are they not CCA exempt ?

MK

They are not part of the CCA but should be treated the same in that respect, all it means when we say "not part of the CCA" is the terms in respect of compliance with a s.77-s.79 request....

So yes, the lender needs to send a statement, they also need to default you properly in line with s.87/s.88 etc.

[Never-In-Doubt]

Re: Annual Statements of Account?

^^^ Just cos it's an OD doesn't mean they can just walk all over you - i'll read the CCA later and quote the relevant part - if I get time!

[garlok]

Re: Annual Statements of Account?

Thats interesting mate as I was always under the impression that ODs fell outside the obligations imposed by the Statute. Certainly the banks seem to take this line ( as they would of course).

regards
Garlok

[CleverClogs (RIP)]

Re: Annual Statements of Account?

^^^ Just cos it's an OD doesn't mean they can just walk all over you - i'll read the CCA later and quote the relevant part - if I get time!

Historically, overdrafts were excluded by section 74 of the Consumer Credit Act 1974 as enacted (link) but now that the law has been amended (link) overdrafts are more regulated (link).

Does that help?

[garlok]

Re: Annual Statements of Account?

Thanks CC, very useful information. I had always thought that s74 still applied and exclusion to ODs still applied.

regards
Garlok

[mk_chatham]

Re: Annual Statements of Account?

Historically, overdrafts were excluded by section 74 of the Consumer Credit Act 1974 as enacted (link) but now that the law has been amended (link) overdrafts are more regulated (link).

Does that help?

Thanks CC

I'll have a read of that and will try to decipher it.

MK

[PlanB]

Re: Annual Statements of Account?

Historically, overdrafts were excluded by section 74 of the Consumer Credit Act 1974 as enacted (link) but now that the law has been amended (link) overdrafts are more regulated (link).

Does that help?

CC. Thanks for those links. I've read all that and feel encouraged unless I've misunderstood. So would you be kind enough to translate that into Plain English for an old fool like me

I think this means s.77A (1) compels the creditor to provide annual statements. Then I think s.74A subsections (1) and (2) say the creditor must also include certain "prescribed" info such as the interest rate at the start of an overdraft facility. And subsection (3) says the debtor must be provided with that information (i.e. interest rate etc) in writing again every year. Are there any sanctions against the creditor for not doing this which are similar to the s.127(?) vehicle which could prevent collection of an overdraft in a sort of unenforceable way?

[garlok]

Re: Annual Statements of Account?

I interpreted that as yes PlanB when I read it through. Would look forward to further expansion though

regards
Garlok

[PlanB]

Re: Annual Statements of Account?

I interpreted that as yes PlanB when I read it through. Would look forward to further expansion though

regards
Garlok

Maybe Paul could add his thoughts on this

In the very least I would like to be able to write a credible letter to the Bank asking for the initial OD agreement if a DCA starts getting pushy. I have a HSBC overdraft with a collector called Clarity (new one on me). After a year doing the rounds they are the first people to sus the debt is an OD not CC. I even had a letter from HSBC saying they couldn't find the original agreement so the Bank accepts it's unenforceable. But maybe HSBC were actaully being accurate and not daft (just this once) if they didn't keep my OD agreement on file

[Never-In-Doubt]

Re: Annual Statements of Account?

Historically, overdrafts were excluded by section 74 of the Consumer Credit Act 1974 as enacted (link) but now that the law has been amended (link) overdrafts are more regulated (link).

Does that help?

Thanks Cloggy - just seen this.

Ok, a layman version for those that want it....

With an overdraft, historically there was little protection in line with (c.39) s.74 (CCA1974). However this was amended within the The Consumer Credit (EU Directive) Regulations 2010 and also with the addition of c.39 (s.74 (A&B) (VA)) CCA(1974 ---> (Consumer Credit Act 1974) <-- to allow overdrafts within legislation.

Now, the easiest way of looking at this is if you do not have an overdraft or you exceed an existing overdraft, then the lending becomes regulated in line with Part VA (s.74) (s.1(b)) meaning the normal rules apply.

The lender also needs to send an annual reminder to you regards the overdraft, this is why most overdrafts only run a year - so at the end of each year you *should* be supplied with a renewal form detailing the O/D PT's which should be in the form of:

s.74A(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,
(c)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).

If you have a pre-agreed overdraft and exceed it, or do not have an agreed overdraft but create one then the lender must send the following information to you:

s.74B(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,
(c)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).

Make sense........ ???

[cymruambyth]

Re: Annual Statements of Account?

Does this have any bearing on ods that have been closed/withdrawn but are still in existence?
Thanks

[Never-In-Doubt]

Re: Annual Statements of Account?

Does this have any bearing on ods that have been closed/withdrawn but are still in existence?
Thanks

In what respect? If there is no OD then of course not, if there is an OD then yes you need to get an annual statement detailing the rate of interest charged etc....

If the OD has been withdrawn then you're entering an unauthorised OD status in which case the bottom part of my post above applies, (s.74(B))

[helmsman]

Re: Annual Statements of Account?

Does this have any bearing on ods that have been closed/withdrawn but are still in existence?
Thanks

Hi Niddy,
As you are aware I am probably the thckest person on here so my dumb ? is had an O/D thought the acc closed and O/D added to loan ccj, got a SAR and O/D showing as onging ie interest adding every month it is rising very high £3000 + but have had no contact since Aug 2010 when stopped the DMP the amount is still below agreed O/D limit but again absolutely no contact from bank just noticed when SAR received. So as long as they dont contact me or I pay anything will it be SB in 2016 or does the interest added monthly keep this live.
Thanks as always.

[Never-In-Doubt]

Re: Annual Statements of Account?

Hi Niddy,
As you are aware I am probably the thckest person on here so my dumb ? is had an O/D thought the acc closed and O/D added to loan ccj, got a SAR and O/D showing as onging ie interest adding every month it is rising very high £3000 + but have had no contact since Aug 2010 when stopped the DMP the amount is still below agreed O/D limit but again absolutely no contact from bank just noticed when SAR received. So as long as they dont contact me or I pay anything will it be SB in 2016 or does the interest added monthly keep this live.
Thanks as always.

Hiya

Sorry, lets start at the beginning - you cannot add two debts into one so if they got a CCJ by adding a regulated and non regulated (in that sense) product together then I would be arguing for set-aside of the whole CCJ.

Thats an entirely different issue. Also if you have a CCJ it'll never become SB in the traditional sense.....

Can you try and reword the question giving more detail cos right now it makes no sense......

However interest being added does not affect the SB date, no. ONLY you paying into it or acknowledging it does.

[helmsman]

Re: Annual Statements of Account?

Hiya

Sorry, lets start at the beginning - you cannot add two debts into one so if they got a CCJ by adding a regulated and non regulated (in that sense) product together then I would be arguing for set-aside of the whole CCJ.

Thats an entirely different issue. Also if you have a CCJ it'll never become SB in the traditional sense.....

Can you try and reword the question giving more detail cos right now it makes no sense......

However interest being added does not affect the SB date, no. ONLY you paying into it or acknowledging it does.

Hi Niddy.
Originally thought the ccj contained the O/D with the loan as it was High ie loan andO/D added together since I did a SAR found this not to be the case the ccj is loan only (paying all up to date) I know the ccj will not be SB paying anyway. But the O/D surfaced with the SAR showing interest being added monthly and increasing heading towards what was an agreed O/D. Have not used the acc for 4 years at least when entered dmp what I was asking as I have not made any payments to that ac with O/D have had no contact about the acc will it become SB in 2016 or will the interest they are adding but not informing me about keep the acc live. Hope that makes sense.