OD's and CCA

[mgfboy]

I was wondering why overdrafts where excluded for cca1974 and if now they come with all sorts of bolts on ( travel insurance, etc) it changes the basic nature of the account to one that may be caught under CCA or any other legislation????

Or has there been any changes to say they might be caught???

[Never-In-Doubt]

Re: OD's and CCA

Nope. Its an informal, repayable on demand short term borrowing process.

The bundle you mention would fall under utccr for instance; not cca1974.

[mgfboy]

Re: OD's and CCA

Nope. Its an informal, repayable on demand short term borrowing process.

The bundle you mention would fall under utccr for instance; not cca1974.

Fair enough, I have to laugh at the short term bit, I've had OD's marked on accounts for over 20 years!!!!!

[Riz]

Re: OD's and CCA

From this document --> Report OFT786a

1.4 What is covered by the s74 determination?

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 – see Q1.5.

A separate determination was made in respect of certain agreements connected with the death of a person.

Copies of the determinations may be obtained from the OFT.

Agreements covered by a s74(3) determination, and satisfying the relevant conditions, are exempt from most Part V rules including s61(1) on execution.

However, the Agreements Regulations will apply to any document embodying such an agreement, and to any term expressed in writing – see Q1.2.

1.5 Are all bank overdrafts exempt?

The s74 determination in respect of bank overdrafts (see Q1.4) 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.

[mgfboy]

Re: OD's and CCA

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.

Thats interesting, I can't say that ever happen to me, does this mean they have breached anything.!!!