Strategy for beating old Over Draft Debt

[pandamonia]

Re: Strategy for beating old Over Draft Debt

Did you ask them to close the accounts or reduce the overdraft limit?


what do you mean by "regulated debt" and why do you think in the case of the overdraft interest can't be charged after a sale - do you have copies of the T&Cs?

I did a bank account transfer but i never thought they would keep the old account open with the same credit limit. i didnt ask for it to be closed but then i never thought banks would be stupid enough to double the credit limits right up to 55k unsecured. They clearly keep them open so you will eventually use the credit and they will make money from you. it was all part of the irresponsible lending of the credit boom. Today im guessing they would demand the old account is closed or credit limit reduced.

You cant add 8% interest under s69 of the county court act 1984. This is for commercial debts between companies or unregulated debt

County Courts (Interest on Judgment Debts) Order 1991 (SI 1991 No 1184). The order excludes a range of cases from judgment
interest, including suspended orders for possession, debts regulated by the Consumer Credit Act 1974

[Debt Camel]

Re: Strategy for beating old Over Draft Debt

OK, well I am not saying this would be an easy defence - it wouldn't! - but you could add to the possible pile asserting that there was an unfair relationship because the back failed to do proper affordability checks. It was aware you were moving your debt elsewhere, it should have considered reducing your credit limit.

County Courts (Interest on Judgment Debts) Order
but that relates to interest after judgment, it says nothing about interest before a CCJ, which is what you are objecting to.

[Diana M]

Re: Strategy for beating old Over Draft Debt

you could add to the possible pile asserting that there was an unfair relationship because the back failed to do proper affordability checks. It was aware you were moving your debt elsewhere, it should have considered reducing your credit limit.

I take your point but the original bank wouldn't be offering new lending so I'm not sure they should be responsible for affordability checks on the continuation of existing borrowing.

On that basis anyone who applies for a new credit card or loan should expect to have other existing lines of credit closed or reduced. Surely the business offering the new line of credit is the one who should be acting responsibly not the other way round.

I'd be jolly cross if my bank closed my account simply because I took advantage of a 0% balance transfer deal elsewhere.

As you say it wouldn't be an easy defence.

Di

[Debt Camel]

Re: Strategy for beating old Over Draft Debt

I take your point but the original bank wouldn't be offering new lending so I'm not sure they should be responsible for affordability checks on the continuation of existing borrowing.

Indeed - CONC 6.2 specifically covers significant increases. That's why this would be a hard defence.

re interest being added,there has to be a term in the original agreement that allows this after an assignment, doesn't there?

[pandamonia]

Re: Strategy for beating old Over Draft Debt

Indeed - CONC 6.2 specifically covers significant increases. That's why this would be a hard defence.

re interest being added,there has to be a term in the original agreement that allows this after an assignment, doesn't there?

S69 refers to simple interest and specifically commercial debts. imo they are trying it on.