Unenforceable accounts and compound interest

[Enforcer]

Just thinking about this.
If an account is UE, the original creditor has obviously added interest to this, at compound rates. If it is unenforceable, they had no agreement to charge interest, or vary interest rates. They are reporting a false default amount to the credit reference agencies. In many cases they have sold the debt to a collection agency for an inflated figure. The DCA's are not advised of the state of the account at the time of purchase, they are hoping to make a large profit, due to consumers ignorance of the law.

Do we simply ask the debt collectors for restitution of interest at the same compound rates that we were charged? Can we enforce restitution? Surely this is a valid point that can be raised when they cannot provide a valid S78 request. Has this ever been tried?

Consider the effect of compound interest, even if we accepted 6 years as limitation, the figure reported on your credit file is false.

I would really appreciate members input on this.

[SXGuy]

Re: Unenforceable accounts and compound interest

Good idea, but from what i have learned, theres a difference between a section 78 unenforceability and section 61.

If an account is UE because they can not comply with section 78, other factors would need to be considered to determine whether it was irredeemably unenforceable under section 61. And in that instance, it would take a court ruling to do so. Only then, i should imagine, would the account be put back to a state where compound interest was removed, and the original balance was brought forward. Something which, you wouldnt want to battle out unless you were absolutely sure you would win, or you may find yourself with very high court fees.

[Enforcer]

Re: Unenforceable accounts and compound interest

I have a ruling from FOS. Barclaycard were unable to provide a "more legible" copy of my agreement. This was not what FOS asked for, they asked for a typed up copy,(reconstituted) they were also unable to provide a copy of the terms and conditions at the time that I signed the agreement, that is , the "prescribed" terms. This is after over 2 years of stating that the Prescribed terms, "would have been on the reverse". A court cannot rule in this case, as there was no document containing the prescribed terms. Section 127 (3).
Barclaycard are a disgrace!

[SXGuy]

Re: Unenforceable accounts and compound interest

Yes but the court can rule on this, the court would ask "Do you recall there being the prescribed terms when you signed the agreement" you would have to make a clear statement, that there was not, in that case, if the OC couldn't prove otherwise, they would rule that it must have been bad at the time of inception.

[Never-In-Doubt]

Re: Unenforceable accounts and compound interest

Good idea, but from what i have learned, theres a difference between a section 78 unenforceability and section 61.

If an account is UE because they can not comply with section 78, other factors would need to be considered to determine whether it was irredeemably unenforceable under section 61. And in that instance, it would take a court ruling to do so. Only then, i should imagine, would the account be put back to a state where compound interest was removed, and the original balance was brought forward. Something which, you wouldnt want to battle out unless you were absolutely sure you would win, or you may find yourself with very high court fees.

Thats about right - but generally the debt would be unpayable/written off if a court judged it irredeemably unenforceable so interest and/or the level outstanding at the CRA is irrelevant - McGuffick allows the default entry etc to remain in such situations.

[Never-In-Doubt]

Re: Unenforceable accounts and compound interest

I have a ruling from FOS. Barclaycard were unable to provide a "more legible" copy of my agreement. This was not what FOS asked for, they asked for a typed up copy,(reconstituted) they were also unable to provide a copy of the terms and conditions at the time that I signed the agreement, that is , the "prescribed" terms. This is after over 2 years of stating that the Prescribed terms, "would have been on the reverse". A court cannot rule in this case, as there was no document containing the prescribed terms. Section 127 (3).
Barclaycard are a disgrace!

mate you need to now walk away. You have FOS judgment in your favour. Forget it now.

You're never going to pay. You won. That's what we're about, helping with the UE elements. Defaults are irrelevant in the grand scheme of things.

[Enforcer]

Re: Unenforceable accounts and compound interest

Just thinking about taking the P--S out of MKDP, thought about writing to them asking if they had an absolute agreement or recourse to OC. Then asking for restoration of interest then reporting said DCA for false info with credit reference agency.

However, if you think that I am best letting this go to sleep, I will agree to your suggestion. Would never have got to where I am without your help.

[Never-In-Doubt]

Re: Unenforceable accounts and compound interest

I think now is the time to weigh up your odds mate. First option, take the piss a bit - then what? Second and my chosen option, let it lie. Wait for drop off and rub your hands at the free cash they gave you.

Mate you've spanked them. You done more than got even. You should be called Dom-Dom cos you actually did the impossible and forced an Adjudicator at the FOS to confirm Barclays are screwed.

Remember only 3 months ago the FOS rules against you. We made her do a 360 degree turnaround. That's evidence how much things can change from day to do. Time to walk away mate. Seriously.

Result

[Enforcer]

Re: Unenforceable accounts and compound interest

Ok, will do as you say. Just waiting for Barclaycard to pay me!

[Never-In-Doubt]

Re: Unenforceable accounts and compound interest

Just waiting for Barclaycard to pay me!