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Under the banking code your bank should not chase you or enforce any debt which is in a valid dispute.
If a debt (overdraft) with a bank is made up of charges which you are disputing as unfair you should inform the bank of your dispute by entering your complaint.
This is just a suggestion and you are perfectly entitled to withold any payment until the outcome of the test case if your debt is outweighed by the charges complaint. This may save you having to deal with defaults being placed on your credit record, debts being passed to debt collection agents and court claims against you - all of which you can fight against, however prevention is better than cure is it not?
CURRENTLY BEING AMENDED FOLLOWING TEST CASE JUDGMENT PLEASE ASK FOR ADVICE.
If a debt (overdraft) with a bank is made up of charges which you are disputing as unfair you should inform the bank of your dispute by entering your complaint.
This is just a suggestion and you are perfectly entitled to withold any payment until the outcome of the test case if your debt is outweighed by the charges complaint. This may save you having to deal with defaults being placed on your credit record, debts being passed to debt collection agents and court claims against you - all of which you can fight against, however prevention is better than cure is it not?
CURRENTLY BEING AMENDED FOLLOWING TEST CASE JUDGMENT PLEASE ASK FOR ADVICE.
Dear Sir or Madam,
ACCOUNT NUMBER: xxxxxxxxxxx
I am writing with regards to the alleged outstanding debt owing on my account. You will be aware that I consider the debt to be in dispute as the majority/whole of this sum is made up of disputed charges and interest charged thereon.
This dispute was notified to you in a letter dated xx/xx/xxxx (copy attached) (add any other action you have taken thus far with regards your claim for charges)
In your letter dated xx/xx/xxxx you have informed me the amount outstanding on the account is £xxxx.xx . The amount I calculate you have taken in unlawful charges and interest on those charges is £xxxx.xx. In addition I am claiming from you a sum of compensatory interest equal to 8% per annum which brings the total disputed amount to £xxxx.xx .
I have no intention of reneging on any part of this account which may be legitimately incurred debt and as I understand the issues surrounding the dispute are currently pending determination in the House of Lords and with the Office of Fair Trading, as a gesture of goodwill I would like to arrange with you to keep this debt on hold until the outcome of that case. Therefore I propose that you place a hold on further charges and interest being added to the account and that you accept an interim repayment plan.
I propose I make payments to you of £xx per calendar month, the first payment is enclosed, until such time as the dispute is resolved. Once this dispute has been resolved, if in my favour, you will continue processing my complaint, and if in your favour we will review repayment arrangements for the alleged debt. To be clear I currently dispute whether this sum or any is actually owed to your company and I am simply offering a reasonable solution in the interim whilst the dispute is considered.
I would like to make you aware of The Office of Fair Trading Code of Guidance in which it states: putting pressure on debtors or third parties is considered to be oppressive This includes: Ignoring disputes about whether money is owed and refusing to freeze action if the debt is in dispute.
I therefore hope to receive your full co-operation in this matter and would like to request a written response to that effect.
Yours Sincerely
Your Name
ACCOUNT NUMBER: xxxxxxxxxxx
I am writing with regards to the alleged outstanding debt owing on my account. You will be aware that I consider the debt to be in dispute as the majority/whole of this sum is made up of disputed charges and interest charged thereon.
This dispute was notified to you in a letter dated xx/xx/xxxx (copy attached) (add any other action you have taken thus far with regards your claim for charges)
In your letter dated xx/xx/xxxx you have informed me the amount outstanding on the account is £xxxx.xx . The amount I calculate you have taken in unlawful charges and interest on those charges is £xxxx.xx. In addition I am claiming from you a sum of compensatory interest equal to 8% per annum which brings the total disputed amount to £xxxx.xx .
I have no intention of reneging on any part of this account which may be legitimately incurred debt and as I understand the issues surrounding the dispute are currently pending determination in the House of Lords and with the Office of Fair Trading, as a gesture of goodwill I would like to arrange with you to keep this debt on hold until the outcome of that case. Therefore I propose that you place a hold on further charges and interest being added to the account and that you accept an interim repayment plan.
I propose I make payments to you of £xx per calendar month, the first payment is enclosed, until such time as the dispute is resolved. Once this dispute has been resolved, if in my favour, you will continue processing my complaint, and if in your favour we will review repayment arrangements for the alleged debt. To be clear I currently dispute whether this sum or any is actually owed to your company and I am simply offering a reasonable solution in the interim whilst the dispute is considered.
I would like to make you aware of The Office of Fair Trading Code of Guidance in which it states: putting pressure on debtors or third parties is considered to be oppressive This includes: Ignoring disputes about whether money is owed and refusing to freeze action if the debt is in dispute.
I therefore hope to receive your full co-operation in this matter and would like to request a written response to that effect.
Yours Sincerely
Your Name
