Strategy for beating old Over Draft Debt

[pandamonia]

Hi, with no CCA whats the best way to fight over draft debts which are now sitting with debt purchasers?

Thanks

[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.

[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?

[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

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.

[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

At the time i opened new accounts to transfer payments and overdraft to Santander. Halifax never closed the old credit limit down. when i moved the overdraft from Santander to a credit card then they didnt close any of those credit limits down.

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

the total debt is wrong they have increased it by 50% since buying the debt claiming 8% interest which is not legal as its a regulated debt.

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?

[pandamonia]

Re: Strategy for beating old Over Draft Debt

Back to the question of defending an overdraft claim in general:

Do you agree with the amount that is alleged?

Was your overdraft limit increased without you asking for this? What was your credit record like at the time? Would the account have shown significant payments to other debts? Were you getting hit by bank charges for failed direct debts?

At the time i opened new accounts to transfer payments and overdraft to Santander. Halifax never closed the old credit limit down. when i moved the overdraft from Santander to a credit card then they didnt close any of those credit limits down. This is how i ended up with 55,000 worth of unsecured credit limit.

Also no the total debt is wrong they have increased it by 50% since buying the debt claiming 8% interest which is not legal as its a regulated debt.

For example Credit file says £ 6600 current balance of debt!

Opening balance
£ 4,300

Repayment frequency
Monthly

Date of default
01/07/2011

Default balance
£ 4,300

[Debt Camel]

Re: Strategy for beating old Over Draft Debt

Back to the question of defending an overdraft claim in general:

Do you agree with the amount that is alleged?

Was your overdraft limit increased without you asking for this? What was your credit record like at the time? Would the account have shown significant payments to other debts? Were you getting hit by bank charges for failed direct debts?

[pandamonia]

Re: Strategy for beating old Over Draft Debt

This in itself says a lot, if the Claimant was a debt purchaser.

is this a normal time frame or to long/short?

[charitynjw]

Re: Strategy for beating old Over Draft Debt

. Although my brother had one set aside and the judge threw out the CCJ within 60 days as the claimant didnt respond to the action.

This in itself says a lot, if the Claimant was a debt purchaser.

[pandamonia]

Re: Strategy for beating old Over Draft Debt

It often seems to me that the court process is a bit like stud poker.

Even if you have a reasonable 'hand', if you are unlucky with the 'judge's lottery', or you are not completely sure of your legal arguments, at the hearing you might find that you are holding aces & eights.

Yes there is problem in all courts it seems. I have witnessed this also in employment tribunals. The Pro business slant on these courts and government in general is disgraceful. Im betting lots of county court judges are pro bank too. Although my brother had one set aside and the judge threw out the CCJ within 60 days as the claimant didnt respond to the action.

[charitynjw]

Re: Strategy for beating old Over Draft Debt

It often seems to me that the court process is a bit like stud poker.

Even if you have a reasonable 'hand', if you are unlucky with the 'judge's lottery', or you are not completely sure of your legal arguments, at the hearing you might find that you are holding aces & eights.

[Diana M]

Re: Strategy for beating old Over Draft Debt

Im guessing where they fall over is when they fake the notice/deed and try and pass it off as honest and accurate. If you have a library of these from other claims then you will see if its real or just made up.

If only it was as simple as that.

The way you describe it there could be software developed to 'compare notes' with documents but it can't.

Deeds are generic whilst a Defendant's situation is unique.

As I said earlier, there's no substitute for knowledge gathered over a period of time through hands on experience. That's the essence of the "trade secrets" to which you refered

Di

[pandamonia]

Re: Strategy for beating old Over Draft Debt

Im guessing where they fall over is when they fake the notice/deed and try and pass it off as honest and accurate. If you have a library of these from other claims then you will see if its real or just made up.