CCA 1974 Vs Overdrafts

[1099OID]

What are the Laws regarding overdrafts.
A Rough out line,
I had a bank account that had an agreed over draft and When I lost my job some time ago I went over the agreed limit. I did everything could to keep straight but spiralling bills just kept dragging me down. I suffered with depression and shoved my head in the sand for a while
I tried talking to the bank but they did not want to know and kept hitting me with chargers and interest.
So I have asked for the provided me with a copy of the signed contract regarding the overdraft pursuant to the consumer credit act 1974. ( clutching at straws)
They have said that overdrafts are exempt from the CCA 1974 and the money outstanding above the a agreed overdraft limit is not covered by the CCA 1974 and they don’t have to provide any paper work for that as it is regarded as separate contract. Can any body point me in the right direction?
Someone said check out Coutts bank Vs Sebastiyen

[nemesis45]

Re: CCA 1974 Vs Overdrafts

Hi,
The information given is correct OD.s Current Accounts are exempt from parts of CCA 1974.

But the process is that a " letter offering the facility and your acceptance" would have been provided when the OD was agreed.

My way around this is to make a Subject Access Request under the Data Protection Act 1998, (SAR) requiring the bank to produce ALL the Personal Data they hold on you and the account.

There is a £10 Statutory Fee to pay (cheque/postal order) the bank has 40 days to comply.
There's a template in the forum library.

[Nibbler]

Re: CCA 1974 Vs Overdrafts

From an old OFT document.

1.4 What is covered by the s74 determination?

A determination under s74(3) was made by the OFT with effect from 1 February 1990. It applies to d-c agreements enabling the debtor to overdraw on a current account, under which the creditor is a ‘bank’ as defined in the Bankers’ Books Evidence Act 1879, provided that certain conditions are satisfied – see Q1.5.

A separate determination was made in respect of certain agreements connected with the death of a person.

Copies of the determinations may be obtained from the OFT.

Agreements covered by a s74(3) determination, and satisfying the relevant conditions, are exempt from most Part V rules including s61(1) on execution. However, the Agreements Regulations will apply to any document embodying such an agreement, and to any term expressed in writing – see Q1.2.

1.5 Are all bank overdrafts exempt?

The s74 determination in respect of bank overdrafts (see Q1.4) applies subject to the following conditions:

• the creditor must inform the OFT in writing of his general intention to enter into such agreements;
• the debtor must be informed, at or before the time an agreement is concluded, of the following:

o the credit limit (if any)
o the annual rate of interest and any charges applicable, and the conditions under which these may be varied
o the procedure for terminating the agreement;

• the above information must be confirmed in writing.

Furthermore, where a debtor overdraws a current account with the tacit agreement of the creditor, and the account remains overdrawn for more than three months, the creditor must inform the debtor in writing not later than seven days after the end of that period of the annual rate of interest and any charges applicable.