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

[Guest]

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.

Ha ha, just thought I had missed something

[Amethyst]

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.

Consumer Credit Act 2006- Additional requirements in relation to default

A Notice of Arrears will first have to be served when a debtor is two months in arrears and at six month intervals thereafter for as long as the arrears persist. Its content will be specified by Regulations.

Failure to serve a Notice of Arrears will result in the agreement being unenforceable during any period of non-compliance. The debtor will not be liable to pay any interest referable to the period of non-compliance or any default sums referable to that period.

A Notice of Default Sums must be served on the debtor within a prescribed period of the sum being payable. A default sum is a sum other than interest which is payable by a debtor under a regulated agreement in connection with a breach of the agreement by him or her. Only simple interest can be charged on default sums.

Either of these two notices will be required to be accompanied by an “information sheet” in a format agreed by the Office of Fair Trading. If a creditor fails to serve a notice of a default sum and OFT information sheet, the agreement cannot be enforced and the debtor cannot be charged interest over the period until the omission is rectified.

[lemondrops]

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

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

thank-you

[Amethyst]

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

Also this is the Statements bit in PIL (and the sec 77/78/79 confusion on my part sorry )

Right to receive statements
Sections 77, 78 and 79 provide that any debtor or hirer under a regulated agreement can obtain on demand a copy of his or her agreement and a statement of account on payment of a fee (£1 at time of writing). If the creditor fails to comply within 12 days he cannot enforce the agreement until he supplies the statement.

Section 78 (4) requires creditors under regulated running account to provide statements of account at regular intervals not exceeding one month, subject to an exception for when there is a zero balance on an account and no amount is required to be paid. Details are specified in regulations. The CCA 2006 provides an additional power for the DBIS to make further regulations requiring the inclusion of information concerning the consequences of default.

Section 77A (2006) states that creditors under fixed sum agreements have to supply debtors with an annual statement of account, starting within one year of the agreement’s commencement date. Failure to do so results in the unenforceability of the agreement during any period of non-compliance. In addition, under the 2010 Regulations, consumer of fixed term loans have the right to request a statement of account. The statement can be requested at any time during the life of the agreement but not more frequently than once a month. In all cases, the contents of the statements are set out in Regulations.

[Guest]

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

Yes unfortunately failure to supply a "true copy"under section 180cca and the associated regulations only has the sanction that the creditor cannot enforce, he can still charge interest and default charges.

The sanction where interest and default charges cannot be applied is connected with the issuance of annual statements and default information.

An oversite in my opnion

[Amethyst]

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

It does seem a bit excessive for not supply a random signposting sheet of paper that everyone bins, but if them's the rules.....


lol, I'm agreeing with your overbite bit. I also agree with your oversite in relation to what I said earlier - I have actually thought that was the case for ages !

[di30]

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

OFT leaflet.

[di30]

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

2 questions here please?

Now does this apply to all accounts involved, so for example, per pay out per blunder on for example 3 of them affected?

And what about if the debt is fully sold on? (as I note it says on one write-up - that any outstanding balance the refund will be used towards the debt).

Thank you :tinysmile_twink_t2:

[di30]

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

They do still send these below, despite payments being made they do say The CCA Credit ACT 1974 requires us to send you this notice because you have missed payments under your agreement (I take it they must mean full payments)? Anyway this is from 2013. I do have earlier ones about somewhere and statements does show interest being deducted.....

[di30]

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

Hope is okay to post this here as its from CAG, just wanted to know about these notices as well, because we did also receive these, are these a part of this issue as well, i note this one is a notice from 2008, just wondering, because if this is the case i shall try finding mine lol.

http://www.consumeractiongroup.co.uk...tercard/page12

[di30]

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

Wow, someone over at MSE said they were awarded £14,000 for this, surely how on earth can this be?, it seems an extremely high amount lol...

[Guest]

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

There was a case of this a year or so ago, I was trying to remember , anyway here it is.

http://www.bbc.co.uk/news/business-20679511

[di30]

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

I have attached one of the letters from collections/Lloyds 2009 and SCUM letter....

Are they legit do you know? (worded as they should be i mean)? lol....

[shell]

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

So what is the situation with First Plus who don't send statements, "it's not their policy". If you do request one it costs you £20.00.
Should they be sending yearly statements?

[Guest]

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

So what is the situation with First Plus who don't send statements, "it's not their policy". If you do request one it costs you £20.00.
Should they be sending yearly statements?

If its a regulated agreement, there must send an annual statement.