Andy's UE Diary

[Andy84]

OK starting my UE quest: This is a debt now being pursued by Cabot Financial on behalf of Co-op Bank. I plan to upload both the personal loan agreement with Co-op Bank and the recent correspondence from Cabot. What may complicate things is that Cabot state that they are pursuing me for a current account debt. However the current account was only terminated by the bank due to debt arising directly from the personal loan agreement that I defaulted on. Hope this makes sense.

[Never-In-Doubt]

Re: Andy's UE Diary

so you're saying the current account was in credit and the bank offset the loan payments thus forcing you into an overdraft which has spiralled out of control with costs and charges etc?

[Andy84]

Re: Andy's UE Diary

that's exactly right - though obviously I soon realised what was happening and changed my bank account to a different provider

[Never-In-Doubt]

Re: Andy's UE Diary

that's exactly right - though obviously I soon realised what was happening and changed my bank account to a different provider

Yep it's normal (but very bad), ok question time -

1. did you have an overdraft?
2. what was the balance when you last used the account?
3. assuming the bank made you overdrawn, were you already OD ie in an OD limit but the loan offsetting exceeded the limit?

The reason for the above is because if you had an OD, of say £500 and were £300 OD when the loan forced you into unauthorised, you'd have a smaller argument than if you were say 50p in credit and the loan offsetting forced you into an unauthorised OD.

Make sense - so please be specific with your response....

** I've replied to your upload thread as well.

[Andy84]

Re: Andy's UE Diary

I was in credit on 30 Mar 2007 and had some wages of 70.30 paid in on that date. However I also made withdrawals of £200 on 2 April 2007 plus a banking fee of £12 on 2 April 2007. Then came my first personal loan repayment of £257.20 on 2 April 2007. This left me 646.89 overdrawn. I stopped using the account at this point (although there were some small payments of wages and tax credits that went in after that date).

[Andy84]

Re: Andy's UE Diary

my query re unenforceability is based on what I've heard about agreements that were pre April 2007 and not signed by the bank. My first repayment was in fact due on 1 April 2007. I don't believe I received a copy of the agreement signed by the bank...

[Never-In-Doubt]

Re: Andy's UE Diary

I was in credit on 30 Mar 2007 and had some wages of 70.30 paid in on that date. However I also made withdrawals of £200 on 2 April 2007 plus a banking fee of £12 on 2 April 2007. Then came my first personal loan repayment of £257.20 on 2 April 2007. This left me 646.89 overdrawn. I stopped using the account at this point (although there were some small payments of wages and tax credits that went in after that date).

When was the last credit to the account, if it was in 2007 then it'll be statute barred now so you won't need to pay.....

Based on the above you weren't in credit when the wages of £70 went in - impossible lol. The loan of £250 plus the £200 you withdrew is only £450 so for it to be at £650 after £70 got credited means you were around £270 overdrawn anyway in which case them offsetting is not as bad as originally thought..... OR they offset two payments which would add up about right?

Anyway - hopefully it'll be SB now

[Never-In-Doubt]

Re: Andy's UE Diary

my query re unenforceability is based on what I've heard about agreements that were pre April 2007 and not signed by the bank. My first repayment was in fact due on 1 April 2007. I don't believe I received a copy of the agreement signed by the bank...

Ok that's the loan, yes? I have replied to the thread in uploads about that - however don't worry about the signed copy from the bank as that won't really matter too much.

So this was taken out in 2007, but when did you last pay - before the £100 you paid in May this year (silly thing to do really).......

[Andy84]

Re: Andy's UE Diary

it was probably in April. I made some monthly payments at the beginning of this year. I don't see how statute barring can help me given that I have made these payments. I thought my strongest argument would be the lack of a copy signed by the bank...

[Undercover Elsa]

Re: Andy's UE Diary

It would still be Statute Barred if there was a clear period of 6 years between your last payment in 2007 and your payment earlier this year. Your recent payments wouldn't restart the clock if that was the case

[Andy84]

Re: Andy's UE Diary

No that won't work because I made more than one payment this year and some other payments in 2007. To be honest I had never considered arguing that it be statute barred. Rather I was pinning my hopes on the agreement being unenforceable on the basis of it being a pre April 2007 unsigned (by the bank) loan agreement.

[Andy84]

Re: Andy's UE Diary

OK another idea is this: Cabot are pursuing me for the debt from the current account from which the loan repayments were deducted (rather than the personal loan itself). Both the loan and the current account had the same reference number (there was no separate reference number for the loan). In the light of this, would there be any point in doing a CCA request to Cabot asking them for full details of the terms and conditions and agreement relating to the opening of the current account (which I opened in 1996). It may well be that that is no longer available - would this make any difference?

[Andy84]

Re: Andy's UE Diary

OK guys I think I'm going to answer my own question: I've just been reading your interesting guide to unenforceability and overdrafts right here - http://forums.all-about-debt.co.uk/s...CA-Information I reckon I'll start off by following the advice therein (given that the correspondence from Cabot refers to the bank account rather than the personal loan). Would you agree?

[Pixie]

Re: Andy's UE Diary

It would still be Statute Barred if there was a clear period of 6 years between your last payment in 2007 and your payment earlier this year. Your recent payments wouldn't restart the clock if that was the case

No that won't work because I made more than one payment this year and some other payments in 2007. To be honest I had never considered arguing that it be statute barred. Rather I was pinning my hopes on the agreement being unenforceable on the basis of it being a pre April 2007 unsigned (by the bank) loan agreement.

If you made a payment in November 2007 for example and then no other payments until this year then the debt would be statute barred. It would be far easier to deal with this on SB basis than on agreements. Can you clarify the exact dates you made the last payment in 2007 and the dates you made the first payment this year.

[ScabHunter]

Re: Andy's UE Diary

If you made a payment in November 2007 for example and then no other payments until this year then the debt would be statute barred. It would be far easier to deal with this on SB basis than on agreements. Can you clarify the exact dates you made the last payment in 2007 and the dates you made the first payment this year.

That is far and away the most important fact to establish first.

Limitation Act 1980, Section 29 Subsection 7 -

(7) Subject to subsection (6) above, a current period of limitation may be repeatedly extended under this section by further acknowledgments or payments, but a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment.

SH