URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

[CleverClogs (RIP)]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

In which part of the UK do you reside?

England.....why???

In Scotland, the limitation period is set (by section 6 and Schedule 1 of the Prescription and Limitation (Scotland) Act 1973) at only five years. In England and Wales, the statute is the Limitation Act 1980, whereby the limitation period is six years.

It seems to me that you last acknowledged that the account existed in November 2007, when you opened another account to service your HSBC loan. Despite that, the bank kept the old account going for another year, presumably to garner money in charges and interest thereon.

Wasn't that nice of them?

I am not convinced that the Consumer Credit (EU Directive) Regulations 2010 or c.39 (s.74 (A&B) (VA)) CCA(1974) applies here, as the law was not made to be applied retrospectively and your account was closed before those regulations came into force. I hope that Andrew can shed some light on this point.

Asserting that the alleged debt is time barred under the Limitation Act 1980 should do no harm but, to be doubly safe, it might be as well not to sign the letter - see section 30 (1) - link

[ATW]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

I am not convinced that the Consumer Credit (EU Directive) Regulations 2010 or c.39 (s.74 (A&B) (VA)) CCA(1974) applies here, as the law was not made to be applied retrospectively and your account was closed before those regulations came into force. I hope that Andrew can shed some light on this point.

I doubt that it would apply too in these circs but will check. I think you should take the limitation point and the 2010 Regs point anyway though. I do not think that limitation has expired.

Have they made any offers to settle? Have you offered them anything? Can you tot up the charges and offer the balance if its only around one-third of what they are claiming?

[megabyte]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

I doubt that it would apply too in these circs but will check. I think you should take the limitation point and the 2010 Regs point anyway though. I do not think that limitation has expired.

Have they made any offers to settle? Have you offered them anything? Can you tot up the charges and offer the balance if its only around one-third of what they are claiming?

Hi everyone,

I have had to resurrect this thread.
MKDP in the end did not issue a claim and everything went quiet and I did not hear back from them.
But guess what they sold the account and now I have a new bunch of jokers hassling me with this account.
What I would like to now is surely this account is statue barred now and will I be OK to fire back with a standard statue barred letter???

Thanks.

megabyte

[Undercover Elsa]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

01/11/2007 – Date of last DD attempt by HSBC.
07/07/2008 – Date of Funds transfer from my other account.
13/11/2008 – Date of last Transaction posted on Account for interest charge.

Hi megabyte,
The waters regarding date of accrual of cause of action in terms of the Statute of Limitations were muddied by a particular court case. However that could all be cleared up soon in appeal (fingers crossed!!).

Overdrafts are rarely clear cut in the way they close. Some can trickle on for ages. That said, if you ceased payment in 2007 and they stopped adding interest in November 2008 you should be home and dry. Did they ever send a formal default notice or termination notice?

Who is chasing you now and what did they say in their last letter?

Elsa xx

[DarkAutumn]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

If the case in question refers to a loan or credit card, whatever the outcome probably wouldn't apply to an overdraft anyway. Overdrafts fall under s.6 of the Limitation Act 1980 http://www.legislation.gov.uk/ukpga/1980/58/section/6 because there are no set repayment dates. Most other debts fall under s.5. If the overdrawn amount is small, the bank may not demand repayment for a very long time.

[Never-In-Doubt]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

If the case in question refers to a loan or credit card, whatever the outcome probably wouldn't apply to an overdraft anyway. Overdrafts fall under s.6 of the Limitation Act 1980 http://www.legislation.gov.uk/ukpga/1980/58/section/6 because there are no set repayment dates. Most other debts fall under s.5. If the overdrawn amount is small, the bank may not demand repayment for a very long time.

Agreed - the cases we refer are not overdrafts.

That said, it is worth noting the ICO's stance whereby they classify appropriateness as being the anniversary of the overdraft. So to make sense of this, using example dates, lets assume you applied for an overdraft on 1st January 2009, and it was £1000. If the bank does not recall the overdraft (demand repayment) then it is assumed renewed on the anniversary so on 1st January 2010, if the bank were happy with your account conduct they'd just leave it intact. If they were unhappy they would recall it.

So, there are two scenarios are to be had.

1. You applied for a £1,000 overdraft on 01/01/2009 and did not use your account again and the bank recalled the OD on 15/08/2009. The official Cause of Action would be 15/08/2009 giving an SB date of around 15/08/2015 (England).

2. You applied for an overdraft on 01/01/2009 and used your account fine when in March 2011 you lost your job and couldn't repay the £1,000 OD. The bank realised you were no longer using the account and recalled the OD on 10/10/2011. The official Cause of Action would be 10/10/2011 giving an SB date of around 10/10/2017.

** The above two examples assume the OD limit was never altered. If you increased / decreased it at any point then that would become the new anniversary date.

Ok, back to the ICO. They say that a default marker should be recorded within a reasonable timeframe however they allow it to be within 3-6 months from the anniversary date. So based on the same above example (1); if the bank recalled the OD on 15/08/2009 and you ignored it; they should be adding the default no later than +3-6 months from the anniversary date of 01/01/(2010) meaning you should be defaulted between 01/2010 and 07/2010 (specifically in relation to your CRA files).

Worse case would be the bank agreeing to an extension of the OD in the January then realising you were in default in say the March - that would allow them another full year to recall plus the 3-6 months.

Hopefully the above will explain the relevance and importance of the anniversary date(s) regarding overdrafts.

[megabyte]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

Agreed - the cases we refer are not overdrafts.

That said, it is worth noting the ICO's stance whereby they classify appropriateness as being the anniversary of the overdraft. So to make sense of this, using example dates, lets assume you applied for an overdraft on 1st January 2009, and it was £1000. If the bank does not recall the overdraft (demand repayment) then it is assumed renewed on the anniversary so on 1st January 2010, if the bank were happy with your account conduct they'd just leave it intact. If they were unhappy they would recall it.

So, there are two scenarios are to be had.

1. You applied for a £1,000 overdraft on 01/01/2009 and did not use your account again and the bank recalled the OD on 15/08/2009. The official Cause of Action would be 15/08/2009 giving an SB date of around 15/08/2015 (England).

2. You applied for an overdraft on 01/01/2009 and used your account fine when in March 2011 you lost your job and couldn't repay the £1,000 OD. The bank realised you were no longer using the account and recalled the OD on 10/10/2011. The official Cause of Action would be 10/10/2011 giving an SB date of around 10/10/2017.

** The above two examples assume the OD limit was never altered. If you increased / decreased it at any point then that would become the new anniversary date.

Ok, back to the ICO. They say that a default marker should be recorded within a reasonable timeframe however they allow it to be within 3-6 months from the anniversary date. So based on the same above example (1); if the bank recalled the OD on 15/08/2009 and you ignored it; they should be adding the default no later than +3-6 months from the anniversary date of 01/01/(2010) meaning you should be defaulted between 01/2010 and 07/2010 (specifically in relation to your CRA files).

Worse case would be the bank agreeing to an extension of the OD in the January then realising you were in default in say the March - that would allow them another full year to recall plus the 3-6 months.

Hopefully the above will explain the relevance and importance of the anniversary date(s) regarding overdrafts.

Hi guys,

Thanx for the replies. But I need some clarification to make sure I've understood properly.

Basically is is it the date when it was officially recalled and defaulted that I need to check for???
If I find the default notice or a letter recalling the overdraft will that be date we can go for as the SB date??

[Never-In-Doubt]

Re: URGENT : Keynes issue LBA for old HSBC overdraft account: HELP!!

Read my post above. There's no way of making it easier to understand

If I find the default notice or a letter recalling the overdraft will that be date we can go for as the SB date??

You go by the anniversary date of the OD or the Date of Recall if earlier.

The default is irrelevant. Why are you letting these "jokers" pressure you into making a mistake? Don't. I'd be ignoring them for now (unless they get heavy!)