Changes to 2006 CCA FROM 1st October 2008

[calamity jane]

Not sure if this has already been posted but can't find it anywhere



Statements to be provided in relation to fixed-sum credit agreements

After section 77 of the 1974 Act insert—

“77A Statements to be provided in relation to fixed-sum credit agreements

(1) The creditor under a regulated agreement for fixed-sum credit—
(a) shall, within the period of one year beginning with the day after the day on which the agreement is made, give the debtor a statement under this section; and
(b) after the giving of that statement, shall give the debtor further statements under this section at intervals of not more than one year.
(2) Regulations may make provision about the form and content of statements under this section.
(3) The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of a statement under this section.
(4) The creditor is not required to give the debtor any statement under this section once the following conditions are satisfied—
(a) that there is no sum payable under the agreement by the debtor; and
(b) that there is no sum which will or may become so payable.
(5) Subsection (6) applies if at a time before the conditions mentioned in subsection (4) are satisfied the creditor fails to give the debtor—
(a) a statement under this section within the period mentioned in subsection (1)(a); or
(b) such a statement within the period of one year beginning with the day after the day on which such a statement was last given to him.
(6) Where this subsection applies in relation to a failure to give a statement under this section to the debtor—
(a) the creditor shall not be entitled to enforce the agreement during the period of non-compliance;
(b) the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and
(c) the debtor shall have no liability to pay any default sum which (apart from this paragraph)—
(i) would have become payable during the period of non-compliance; or
(ii) would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).
(7) In this section ‘the period of non-compliance’ means, in relation to a failure to give a statement under this section to the debtor, the period which—
(a) begins immediately after the end of the period mentioned in paragraph (a) or (as the case may be) paragraph (b) of subsection (5); and
(b) ends at the end of the day on which the statement is given to the debtor or on which the conditions mentioned in subsection (4) are satisfied, whichever is earlier.
(8) This section does not apply in relation to a non-commercial agreement or to a small agreement.”

7 Further provision relating to statements

(1) In section 78 of the 1974 Act (duty to give information to debtor under running-account credit agreement) after subsection (4) insert—
“(4A) Regulations may require a statement under subsection (4) to contain also information in the prescribed terms about the consequences of the debtor—
(a) failing to make payments as required by the agreement; or
(b) only making payments of a prescribed description in prescribed circumstances.”
(2) In subsection (7) of that section for “(4) and (5)” substitute “(4) to (5)”.
(3) In section 185 of that Act (agreement with more than one debtor or hirer) for subsection (2) substitute—
“(2) Notwithstanding subsection (1)(a), where credit is provided under an agreement to two or more debtors jointly, in performing his duties—
(a) in the case of fixed-sum credit, under section 77A, or
(b) in the case of running-account credit, under section 78(4),
the creditor need not give statements to any debtor who has signed and given to him a notice (a ‘dispensing notice’) authorising him not to comply in the debtor’s case with section 77A or (as the case may be) 78(4).
(2A) A dispensing notice given by a debtor is operative from when it is given to the creditor until it is revoked by a further notice given to the creditor by the debtor.
(2B) But subsection (2) does not apply if (apart from this subsection) dispensing notices would be operative in relation to all of the debtors to whom the credit is provided.
(2C) Any dispensing notices operative in relation to an agreement shall cease to have effect if any of the debtors dies.
(2D) A dispensing notice which is operative in relation to an agreement shall be operative also in relation to any subsequent agreement which, in relation to the earlier agreement, is a modifying agreement.”

A reform on the 20th October will allow a period of 30 days grace after the 12 months for the creditor to provide the information.

[Amethyst]

Re: Changes to 2006 CCA FROM 1st October 2008

Just cause I was wondering

17 Small agreements

(1) A small agreement is—

(a) a regulated consumer credit agreement for credit not exceeding £50, other than a hire-purchase or conditional sale agreement; or

(b) a regulated consumer hire agreement which does not require the hirer to make payments exceeding £50 ,

and it doesn't apply to those lol.


Basically you must get one statement per calendar year from the date of the agreement else for the period of non compliance, they can't add interest, default charges, default you or enforce the agreement (so basically from 1 year of last statement to when the new statement arrives). If they refuse to give you a statement the debt is unenforceable. Will give people a bit more leverage without hidden charges being whacked on while they fart about pretending not to be able to give you a statement.

That about right?

[Curlyben]

Re: Changes to 2006 CCA FROM 1st October 2008

Yep, that's my reading as well.

Will make things "interesting" for DCA's

[calamity jane]

Re: Changes to 2006 CCA FROM 1st October 2008

Central Trust have been advising customers that any payments over 5 days late will incur a charge of £50. This charge will be added on to the end of the loan.

On checking the requirement to issue annual statements addition to the Consumer Credit Act, I came across the following;

INFORMATION TO BE INCLUDED IN STATEMENTS RELATING TO FIXED-SUM CREDIT AGREEMENTS

1. The period to which the statement relates.
2.—(1) The name, telephone number or numbers, postal address and, where appropriate, any other address of the creditor.
(2) Where the creditor and the debtor have entered into an arrangement under which the creditor has given the debtor details of a particular employee or category of employee of the creditor whom the debtor is entitled to contact in relation to all his dealings with the creditor, the creditor may, instead of including the telephone number or numbers referred to in sub-paragraph (1), refer to that arrangement.
3. Information specific to the agreement—
(a) a description of the agreement sufficient to identify it;
(b) the amount of credit provided and, where applicable, to be provided under the agreement (shown as one figure);
(c)(i) any rate or rates of interest applicable on a per annum basis which applied during the period to which the statement relates and—
(aa) the periods during which each rate applied; and
(bb) if applicable, the element of the credit to which each rate applied; or
(ii) where the rate or rates of interest are not applicable on a per annum basis, the rate or rates of interest on the credit provided under the agreement, in each case quoted on a per annum basis and a statement explaining how and when interest charges are calculated and applied under the agreement;
(d)(i) the date on which the agreement became an executed agreement; or
(ii) the date of first movement on the account;
(e)(i) the duration; or
(ii) the minimum duration,
of the agreement as provided in the agreement;
(f) any opening balance under the agreement at the beginning of the period to which the statement relates;
(g) the amount and date of any payment made into the account by, or to the credit of, the debtor during the period to which the statement relates;
(h) the amount and date of any interest or other charges payable by the debtor which became due during the period to which the statement relates, whether or not the interest or other charges relate only to that period;
(i) the amount and date of any movement in the account during the period to which the statement relates which is not required to be included in the statement under sub-paragraphs (g) and (h); and
(j) the balance under the agreement at the end of the period to which the statement relates.

Does this mean that;
1) any charges that people accrue will suddenly appear at the end of the loan in one lump sum? &
2) If they're not included on the statement you can't reclaim them.

[righty]

Re: Changes to 2006 CCA FROM 1st October 2008

Is this retrospective??

[calamity jane]

Re: Changes to 2006 CCA FROM 1st October 2008

Hmm been thinking about this.

We have a loan with Central Trust. At present monthly payments are being made approximately 2 weeks late.So far they have been O.K. with this as payments will be up to date by June/July(all to do with money going in account every 4 weeks).
Now I think it was late October I was told about the £50 being put on to the end of the loan if payments were more than 5 days late. This means that we have/will incurred £50 x 7 = £350 of charges.But as they're going to be added on to the end of the loan, they won't have to show them on the statement that we're due to receive in July.

[Paule]

Re: Changes to 2006 CCA FROM 1st October 2008

They will probably be on the statement as added to the outstanding debt.
It will just be that you continue to make payments once youve paid the initial amount to pay off the charges.
It wont be that they wont appear on the statement, just that you will continue to pay until it is settled in full.

So your July statement will prob have 7 entries of £50 added to the loan, which will mena that you will continue to pay, hence paying them and the end of the loan.

ie if loan amount is £1000 and you pay £100 per time, then then add £100 worth of charges, this will mean that you need to make an extra payment of £100 at the ened of the loan to clear the balance

[calamity jane]

Re: Changes to 2006 CCA FROM 1st October 2008

Just Looked at our Credit Agreement and it was signed MAY 2005. Oh dear does this mean we should have received our first yearly statement by now? :grin:


CJ

[Curlyben]

Re: Changes to 2006 CCA FROM 1st October 2008

CJ, yes it does..

[MIKE770]

Blimey this thread is very very old like 12 year's last used