OFT £149million to be repaid..... who knows anything about this......?

[ELIZABETH1]

Over £149 million to be repaid to bank and building society customers following OFT action - The Office of Fair Trading



Press releases 2014 -

Over £149 million to be repaid to bank and building society customers following OFT action

18/14 20 March 2014
Seventeen banks and building societies have agreed to repay over an estimated £149 million in interest and charges to around 497,000 customers, following OFT action.
The money is to be repaid because the banks and building societies concerned did not provide customers with some of the post-contractual information about their credit agreements, as required by the Consumer Credit Act 1974. For example, many failed to provide the required statutory wording in statements and arrears notices.
Under the Act, a lender is not entitled to recover interest or default charges for any period during which it has failed to comply with certain statutory requirements.
The interest and charges were paid on products such as store cards, credit cards, loans and hire purchase agreements.
The money is to be repaid after the OFT wrote to 50 banks and building societies in November 2013 asking them to confirm that they had fully discharged their obligations to provide post contract information under the Consumer Credit Act.
The OFT took this action in light of previous similar issues relating to the Act by some other banks.
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'.
Customers do not need to take any action at this time and should be contacted directly by their bank or building society if their agreement is affected.
NOTES

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.
4. Following issues relating to the Act by some other banks, consumers were remediated over £370 million.
5. The CCA requires businesses that offer goods or services on credit, or lend money, or are involved in activities relating to credit or hire, to be licensed by the OFT.
6. The Financial Conduct Authority (FCA) will take over regulation of consumer credit from the OFT on 1 April 2014. The transfer of regulation is part of the Government's programme of regulatory changes for financial services and brings conduct of business regulation under a single financial services regulator. See the FCA's website for more information.

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Re: OFT £149million to be repaid..... who knows anything about this......?

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

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