Over £149 million to be repaid by lenders ref CCA failings post contractual info

[Broceliande]

Re: Over £149 million to be repaid to bank and building society customers follo

There's a long standing one running that's still trying to find it's way into the Court of Appeal. It's a very long shot but it's the best effort I know of to date.

Thanks EXC. I actually keep tabs on that one.

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

LOL thanks Ame and Tools, (Lloyds) lol :tinysmile_twink_t2:

[Ruby]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

How far back will the banks/building societies be going? ie. If we had a loan 10 years ago, paid off, would we still be in line for a refund, if applicable?

[Broceliande]

Re: Over £149 million to be repaid to bank and building society customers follo

There IS still a case going through Court so yes, hang fire a while, particularly if charges massively affected you xxx

Learning patience ever since Amethyst. I represented myself at the time and the learning curve was steep. Knowledge now accumulated helps me daily.

[Amethyst]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

No. It's if they failed to send post contractual information as required by the CCA out after the new rules came in in 2008 - so while they were in default of sending out say, a periodic statement, they couldn't charge interest and charges between time they should have sent it out and time they did, if ever. Hence it only being about £300 squids per customer.

1. Since October 2008, under Section 77A of the Consumer Credit Act 1974 (CCA), lenders have been obliged to send periodic statements to customers. These must contain specific information and wording. A creditor failing to provide the periodic statement as required is not entitled to enforce the agreement, and the debtor is not liable to pay interest or default sums, during the period of the creditor's non-compliance.
2. Section 86B of the CCA sets out the requirement to send a notice to the debtor where they fall into arrears by more than two payments to alert them to that fact and the potential consequence of falling into arrears. A creditor failing to send such a notice is not entitled, while the breach continues, to enforce the agreement and that the debtor is not liable to pay interest or default sums during the period of the creditor's non-compliance.
3. Other sections of the CCA impose obligations upon lenders to provide information to debtors, which for brevity are not listed here.

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

I shall have to dig out my letters/statements, can remember statements of the accounts but just to say what the balance is owed, not sure about the ones with specific wording though....

Wonder if anyone has one that can post one on here to show the example of the wording etc??

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

So basically if the debt is still not settled, the refund will be paid towards it, and others on settled loans/credit cards etc will receive a cheque, now what if the debt been fully assigned/sold on?

http://www.theguardian.com/money/201...anks-regulator

Credit and loan refund windfall as 17 banks admit paperwork errors

Customers to get average £300 each after regulator finds many credit and loan agreements breeched consumer legislation.
Problems with credit and loan agreements first came to light in December – but now it seems the problem is a bigger issue that originally thought. Photograph: Nicholas Rigg/Getty Images
Half a million people will share a £149m payout after the Office of Fair Trading uncovered widespread errors in credit and loan agreements. It has emerged that 17 banks and building societies have agreed to pay refunds, which will average £300 for each of the 497,000 people affected.
The problem involves some credit and store cards, loans and hire purchase agreements. It is thought some people will receive the refund in the form of a reduction in what they owe, while others – for example, those who have already paid off the loan or no longer have the card – are likely to receive a cheque.
The £149m that is being refunded comes on top of at least £370m that three banks – Northern Rock, Barclays and the Co-operative Bank – have already repaid to customers after it was found that many people's paperwork did not comply with the Consumer Credit Act.


The OFT has not named the 17 banks and building societies, and the announcement would appear to confirm the watchdog's suspicions that this problem is a bigger issue than originally thought.
The money is to be repaid because the companies concerned did not provide some of their customers with all the information they were entitled to by law. For example, in many cases, the statements and arrears notices they sent out failed to provide the required statutory wording – and under the law, borrowers are not liable for interest relating to a period when a lender has not provided the information. Under the act, a lender is not allowed to recover interest or default charges for any period during which it has failed to comply with the requirements.
These problems first came to light in December 2012, when it emerged that 152,000 people who have, or had, a personal loan with Northern Rock would each receive a windfall averaging £1,775 because of a paperwork glitch.
The taxpayer picked up the £270m bill because the error happened when Northern Rock was in public ownership. It was found that many people's loan statements failed to include the original amount borrowed. The Consumer Credit Act requires such statements to contain the sum borrowed, plus the opening and closing balance.
Then in September 2013 it was disclosed that as many as 300,000 Barclays personal loan customers could be in line for refunds totalling around £100m after the bank uncovered errors in its paperwork. The Co-op Bank made a similar announcement, though no figures were disclosed.
Following these revelations, the OFT wrote to 50 banks and building societies to ask them to come clean about any historic errors.
The watchdog said customers did not need to take any action at this time and would be contacted directly by their bank or building society if they were affected.
David Fisher, senior OFT director for consumer credit, said: "These issues were not deliberate misconduct, but the institutions concerned should have ensured they were complying with the law. The OFT welcomes the proactive steps taken to return money to customers where it was incorrectly charged."

[Amethyst]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

I shall have to dig out my letters/statements, can remember statements of the accounts but just to say what the balance is owed, not sure about the ones with specific wording though....

Wonder if anyone has one that can post one on here to show the example of the wording etc??

• annual statements under fixed-sum credit agreements
• additional information in statements for running-account credit
• notices of sums in arrears
• notices of default sums
• additional information in default notices
• notices relating to post-judgment interest.


STATEMENTS
For agreements made on or after 1 October 2008, the first statement must be given within a period of one year beginning on the day after the day the agreement is made. For pre-existing agreements, the first statement must be given within one year from 1 October 2008. Thereafter the creditor must give the debtor further statements at
intervals of not more than one year, until there are no sums which are or may become payable under the agreement.

The 2007 Regulations specify the information to be included in statements for fixed-sum credit agreements.
In particular: • the duration of the agreement and the amount of credit provided
• the rate or rates of interest applicable, together with - the period during which each rate applied
- if applicable, the element of the credit to which it applied
• the opening balance at the beginning of the period to which the statement relates
• the amount and date of any payment to the account during the period
• the amount and date of any interest or other charges falling due during the period
• the amount and date of any other movement in the account during the period
• the closing balance at the end of the period.

Prescribed wording can be found http://www.legislation.gov.uk/uksi/2...chedule/1/made
These are contained in Parts VI and VII of the Act, and in various regulations including the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007.
The OFT has published guidance on Post-contract information requirements (July 2008) (pdf 141 kb).

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

Brill thanks so much Ame x

Would be useful to know if Lloyds are one of those now so i can get looking lol, thanks again x

[Amethyst]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

Lloyds, Notice of Default Sums, example

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

Thanks again Ame x :tinysmile_twink_t2: on checking I cannot recall on ever receiving anything like that, i asked hubby and he also says no.

Over on MSE someone posted up an unoffocial list of banks involved, and if its right then Lloyds are one of them too, if you would like me to get this list let me know, cheers (although its not official).

[lemondrops]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

hi
this is my first post here but I have been a member for some time. Sorry for the lengthy post, and thank-you for any help you can provide me with! I have some questions regarding the CCA post contract information required;-

(1) I have checked all my credit accounts since 2008 and have found one of my credit card providers (Sygma bank) has not provided a reference to fos in dispute resolution, has no prescribed statement for payment allocation, and has not pointed out the consequences for not making minimum payment. The credit card provider is not on the unofficial list on the MSE forum. Can I send in a complaint to the company with my concerns or should I wait?. I have four separate credit cards with this company currently on a debt management plan, so if I could re-coup interest paid my balances would be lowered tremendously

(2) My second question relates to the requirement regarding "the consequences of failing to make a minimum payment" which I believe according to the 2007 regulations a reference must be made on a credit card statement regarding this; I have been unable to locate this requirement in the legislation itself and wondered if someone could point me in the right direction (is it just a case of they must list the charges applied?)

(3) My last question relates to fixed sum credit agreements ie loans. I have had two loans in the period since 2008 and both companies involved have sent me yearly statements, however the interest has just been listed at the beginning on the first statement as in one case "charge" and the other as "interest". I believe the requirements are that for each peiod the date and amount of interest or other charges falling during the period must be part of the statement, however I understand there are special provisions relating to agreements with pre-computed interest under which interest is calculated at the start of the agreement rather than on the basis of balance outstanding. Can anyone point out the specific regulation covering the interest on pre-computed interest as I would like to check my agreements comply?

Thank you once again for taking the time to read and answer my questions

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

Hi LemonDrops

thank you for your post and hopefully someone that know more on this will post up soon in due course of the info you require x

[di30]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

I note they mention about the info the banks should send, now are these the leaflets of the arrears marked Office of Fair Trading? (Or have i the wrong end of the stick with this)? just wondered if this was any part of the procedures they failed on as well?

I have however a annual statement of the amount, balance interest etc (its been cropped) but is this also the statements that they mean please? Thanks x (oops sorry its blurry)!

[lemondrops]

Re: Over £149 million to be repaid by lenders ref CCA failings post contractual info

I note they mention about the info the banks should send, now are these the leaflets of the arrears marked Office of Fair Trading? (Or have i the wrong end of the stick with this)? just wondered if this was any part of the procedures they failed on as well?



I have however a annual statement of the amount, balance interest etc (its been cropped) but is this also the statements that they mean please? Thanks x (oops sorry its blurry)!

Thanks for your reply.

Yes, I think it is procedures as well as actual wording on statements etc. I have read the OFT guidelines in great detail to see if any of my accounts are affected, but there are things like notices of variation etc that have to be placed in newspapers etc, that I am not sure of. It is so easy to get bogged down in the nitty gritty! I have thankfully kept all my paperwork as after bank charges and ppi; I realised you should not throw things away for a long time!