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

[Nibbler]

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

A (new poster admittedly) on MSE has posted this:

I have just received a letter, from an old bank I am no longer with, advising me that I am due to the grand sum of £14,000. However, the taxman is also taking some of this from the 8% interest they are paying me. That doesn't bother me as banks are not currently paying anywhere near 8% at the moment. Thank you OFT!

Wow.

I wonder if the amount is a typo though, as that is a suspiciously large amount of interest and charges to accrue on a regulated agreement.

[lemondrops]

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

A (new poster admittedly) on MSE has posted this:



Wow.

hopefully that means the banks are going to sort this mess out sooner, rather than later!. However, I do think a list of the banks and finance types involved should have been released. I also don't think the £149m is going to cover what they owe people.

I think I am going to approach the bank I know has made errors to proactively get a refund. I presume whatever they owe me will be taken off my balance owed first. I have checked though and on one of my accounts they owe me roughly £1500 after wiping the balance of the card, the other three I will have my balances reduced by approx £3000, all in all a £10k error! I am worried I will have a fight though, especially if the bank involved isn't on the "list". The errors are very basic though, so I guess I can go straight to the FOS if they don't want to play fair

Hoping there will be simular errors on my other accounts, I could certainly do with a financial boost right now. I guess it is just a waiting game

[suffering]

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

are un regulated loans affected by this

[Amethyst]

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

You know it is only a refund of interest and default charges applied from the period they should have given the post contractual information to when they did. Ok since 2008 if they have been applying interest and charges and never sent you anything it might add up a bit but the average is about £300.

I am going to sort out today for lemon drops questions so will do that once family is out the way and I can hear myself think for ten minutes xx

But how have you come up with these figures?

I have checked though and on one of my accounts they owe me roughly £1500 after wiping the balance of the card, the other three I will have my balances reduced by approx £3000, all in all a £10k error!

??ahh get you ... let me sort out some guidance ok before jumping the gun. Xxxxx

[Amethyst]

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)!

Lol, that could be anything xx What is it headed?

[lemondrops]

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

You know it is only a refund of interest and default charges applied from the period they should have given the post contractual information to when they did. Ok since 2008 if they have been applying interest and charges and never sent you anything it might add up a bit but the average is about £300.

I am going to sort out today for lemon drops questions so will do that once family is out the way and I can hear myself think for ten minutes xx

But how have you come up with these figures? ??

Hi, thank-you for doing some research for me,but please don't put yourself out too much to do this! The figures I have come up with were put into a speadsheet used to calculate bank charges/ppi. I went though and listed all the interest charges applied. I used my interest rate applied to account plus 8% simple. Unfortunately I have some large balances, and the interest is therefore quite high (in one case £90 a month for a long time!). I think I have worked out correctly as I would have been paying interest on interest if you see what I mean. On some of my accounts I had some interest free periods, so the refund would not be as much. Either way I have paid a lot in interest over the years - lesson well and truly learned there!

Just to add I have had these accounts from around 2008/2009, and the paperwork is still incorrect, this makes me think the bank involved is not on the list as they would have corrected the error by now. This is a reason we should be told what financial institutions are involved, otherwise how can we check?

[Amethyst]

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

A (new poster admittedly) on MSE has posted this:



Wow.

I wonder if the amount is a typo though, as that is a suspiciously large amount of interest and charges to accrue on a regulated agreement.

And suspiciously quick you think? I haven't seen the MSE thread but presumably there's not lots of people saying they already had their refund?

[Amethyst]

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

Heres the relevant starting point for research into this from the oft. It is 'proactive refunds' so no action is required.

Statements and notices

The Act includes requirements in respect of:

• annual statements for fixed-sum credit agreements
• periodic statements for running-account credit
• notice of variation of an agreement
• notices of sums in arrears
• notices of default sums
• default notices
• enforcement and termination notices
• notices relating to post-judgment interest
• information to be provided on request.

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).
The OFT intends to review the current guidance in the light of the CCD changes.
The CCD changes

The CCD implementing regulations include new provisions in relation to:

• notification of interest rate changes
• periodic information on overdraft rates and charges
• information on significant overrunning (that is, unauthorised overdraft)
• right to request an amortisation table (showing instalments owing)
• notification of assignment of rights.

The changes are contained in the Consumer Credit (EU Directive) Regulations 2010.
A summary of the CCD changes is in the BIS guidance on the implementing regulations (pdf).

[Nibbler]

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

And suspiciously quick you think? I haven't seen the MSE thread but presumably there's not lots of people saying they already had their refund?

Depends. The banks would obviously have had plenty of warning and would have known for some time that OFT press release was going to go out. So they could have letters ready to go.

But no, there are NOT plenty of posters claiming they've had letters yet. In fact that is the only one I've noticed yet, but haven't searched that much on the subject.

I saw that this morning and thought great!

Then I woke up properly and thought, errrmmmm....?

[Amethyst]

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

I'm a little dubious on the ''unofficial list'', I could write a list of 17 banks off the top of my head. I recall after the regs came in in 2008 I received annual statements from Santander and Barclays - off accounts I hadn't used for a long while. Just nudged me into actually closing them down properly. So it wont apply to every customer just those that weren't sent the relevant bits at the right times. There have been failings and breaches of the regs, yes we should keep an eye on them but I don't think anyone should be doing cartwheels and totting up how much they could get just yet.

[Amethyst]

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

Actually one point I meant to bring up was the CCA sec 77/78 requests. If you have sent such a request on a 'live' account and had no response or compliance with your request, then interest should not have been charged since 14 days (12+2) following your request. I know most are sent after default so it wouldn't apply but some are sent off to live accounts to get information before deciding what to do with the debt, but I don't think many people follow up with the 'can't charge me interest till you comply' .....

IGNORE THAT I'M TALKING OUT MY BOTTOM

[Guest]

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

Schedule 1 for fixed sum.

The requirements you mention for running account credit are in schedule 2

http://www.legislation.gov.uk/uksi/2...chedule/2/made

[Guest]

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

Actually one point I meant to bring up was the CCA sec 77/78 requests. If you have sent such a request on a 'live' account and had no response or compliance with your request, then interest should not have been charged since 14 days (12+2) following your request. I know most are sent after default so it wouldn't apply but some are sent off to live accounts to get information before deciding what to do with the debt, but I don't think many people follow up with the 'can't charge me interest till you comply' .....

HI

Where is this requirement ?

[di30]

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

When we fell info difficulties a few years ago, (where hubby worked it went into administration days before xmas in 2007) money ran out (because wages were not paid and only paid out in dribs and drabs through insolvency) this is still going on now lol, and the social did not pay out for many weeks, so we ended up in arrears on 2 loans and credit cards also bank account (lloyds).

We were sent letters despite trying to make an affordable arrangement on each account, and they did sent letters from their DCA's as well, this was not long after missing one full payment, and the leaflet enclosed from letters from lloyds and SCUM etc were headed "Office of Fair Trading" information sheet.

I take it this was all part of the standard procedure and of course interest/charges added up over time.

[Amethyst]

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

Ignore me Andy, I'm just having a Sunday morning brain freeze. (I was getting confused between 2006 and 1974 )