OFT writes to banks and building societies following recent CCA failures

[Nibbler]

Has this been mentioned?

http://www.oft.gov.uk/OFTwork/credit...cement-action/

OFT writes to banks and building societies (4 November 2013)

Following recent failures by some banks to fully discharge their obligations under the Consumer Credit Act, the OFT has asked a number of banks and building societies to confirm that they have accurately and fully provided consumers with information regarding their loan agreements.

• See letter to banks and building societies (pdf 75kb)

[Nibbler]

Re: OFT writes to banks and building societies following recent CCA failures

http://www.independent.co.uk/money/l...r-8930120.html

In short, banks or building societies must include full details on loan statements or arrears notices: if they fail to do so they are not allowed to charge interest. Lenders which fail to include details have to refund the interest charged to consumers for the period which the statements or arrears notices cover.

When it came to light that Northern Rock had made the blunder it was forced to repay £270m to more than 150,000 people in December 2012. In September this year Barclays' similar blunder left it facing a £100m bill to repay 300,000 customers. Meanwhile last month the Co-operative Bank increased its provisions for customer redress to cover "an identified breach of the Consumer Credit Act".

The OFT has told the lenders to respond by Monday week - 18 November. Their responses could yet open the floodgates to more compensation payouts to hundreds of thousands of illegally-treated bank and building society customers.

[TUTTSI]

Re: OFT writes to banks and building societies following recent CCA failures

From the article in the Independent it states:-

"In short, banks or building societies must include full details on loan statements or arrears notices: if they fail to do so they are not allowed to charge interest. Lenders which fail to include details have to refund the interest charged to consumers for the period which the statements or arrears notices cover"

What exactly are the full details that need to be shown on loan statements?

O/H has a Barclays personal loan...................wouldn't be nice if he got back all his interest. That would be a nice xmas present.

[Amethyst]

Re: OFT writes to banks and building societies following recent CCA failures

http://www.oft.gov.uk/about-the-oft/...o#.Un7HAeK3Du8

Have a read of the guidance (The OFT has published guidance on Post-contract information requirements (July 2008) (pdf 141 kb). ) then it's a case of going through the CCA


Basically I think the letters telling lenders to pull their fingers out because if they don't comply with your CCA request (before default that is) they can't charge interest on the loan between the 12 days and the day they provide the agreement. Probably the huge rise in CCA requests and proportionate rise with them not being complied with has created an influx of complaints so they need to kick some ass before the FCA take over.

[PlanB]

Re: OFT writes to banks and building societies following recent CCA failures

Basically I think the letters telling lenders to pull their fingers out because if they don't comply with your CCA request (before default that is) they can't charge interest on the loan between the 12 days and the day they provide the agreement.

As ever the OFT has failed to mention the most important legal point in their letter which is if a lender fails to comply with a section 77-79 request then the account is unenforceable in a court of law if it was opened before April 2007. This is the main legal principle Celestine is using to get dozens of statutory demands set aside, and another reason why county court proceedings are either discontinued or lost by the Claimant. The 12 days (+ 2 for service) is the 'window of opportunity' for the creditor to comply, after that they cannot enforce the debt until they do. "Enforcement" doesn't mean that they can't try by issuing proceedings but they won't win. However the OFT Guidance on Debt Collection makes it clear that they shouldn't even try.

Not being charged interest is a bonus but getting the debt declared unenforceable is far more satisfying.

I'd like to get hold of a list of those 50 banks

[PlanB]

Re: OFT writes to banks and building societies following recent CCA failures

Has this been mentioned?

http://www.oft.gov.uk/OFTwork/credit...cement-action/

Thanks for that Nibbler. Unsurprisingly the OFT haven't issued a Press Release on this interesting development :rolleyes2: Well done to The Independent for picking up the story.

Now maybe the OFT will revoke the licenses of all those aggressive debt purchasers who abuse the legal system by issuing statutory demands while in full knowledge that the debt is unenforceable due to non compliance with section 77-79 of the Consumer Credit Act 1974. The name Lowell springs to mind.

[ODC]

Re: OFT writes to banks and building societies following recent CCA failures

Someone really needs to draw the attention of the OFT to this insidious practice by the Leeds losers

[TUTTSI]

Re: OFT writes to banks and building societies following recent CCA failures

Would a Freedom of Information request to the OFT give you the list you want plus any other information that is needed in the public domain.........just my thoughts

As ever the OFT has failed to mention the most important legal point in their letter which is if a lender fails to comply with a section 77-79 request then the account is unenforceable in a court of law if it was opened before April 2007. This is the main legal principle Celestine is using to get dozens of statutory demands set aside, and another reason why county court proceedings are either discontinued or lost by the Claimant. The 12 days (+ 2 for service) is the 'window of opportunity' for the creditor to comply, after that they cannot enforce the debt until they do. "Enforcement" doesn't mean that they can't try by issuing proceedings but they won't win. However the OFT Guidance on Debt Collection makes it clear that they shouldn't even try.

Not being charged interest is a bonus but getting the debt declared unenforceable is far more satisfying.

I'd like to get hold of a list of those 50 banks

[PlanB]

Re: OFT writes to banks and building societies following recent CCA failures

Someone really needs to draw the attention of the OFT to this insidious practice by the Leeds losers

Maybe it's wise to wait until 1st April 2014 when the FCA takes over the regulation of creditors from the OFT which has failed spectacularly so far. By then I'm sure Celestine and Legal Beagles will be able to put forward a hundred or more set-aside statutory demands as evidence of this abuse which could trigger a proper investigation

[Amethyst]

Re: OFT writes to banks and building societies following recent CCA failures

The replies to the letter sent which are due on 18th November should be very interesting...be hidden as commercially sensitive and well redacted under FOI but still the reaction by the OFT and FCA should be interesting.

I don't think this is JUST about non compliance with 77-79 but includes default notice, annual statements, notice of defaukt charges and information on statements - basically all post contract information under CCD and CCA 2006.

[PlanB]

Re: OFT writes to banks and building societies following recent CCA failures

I don't think this is JUST about non compliance with 77-79 but includes . . .

I agree. It's what a spin doctor calls "burying the bad news" :tape: That's my inner sceptic talking.

[PlanB]

Re: OFT writes to banks and building societies following recent CCA failures

all post contract information under CCD and CCA 2006.

More cynicism from me

The OFT letter specifically does not mention the CCA 2006 it simply refers to "e.g. under sections 77-79 of the CCA". The CCA 1974 contained section 127 (3) to (5) which made accounts unenforceable if no CCA was provided to the debtor. This section was subsequently repealed but there are millions of credit agreements out there which began before that happened which still gives those debtors legal protection.

Maybe the fact that the OFT didn't make that clear (CCA 1974 vs 2006) to the 50 recipients of their letter was an oversight. Maybe omitting to tell lenders the legal consequences of non compliance with the CCA 1974 and also missing an opportunity to advise lenders of their statutory obligations under CCA 1974 was also an oversight.

[Amethyst]

Re: OFT writes to banks and building societies following recent CCA failures

The amendments came in under the CCD and CCA 2006 and sec 77-79 is mentioned by way of an example, and they specifically mention default and termination provisions under part 7 of the CCA 1974.

I agree with you, there are much worse consequences to non compliance than a simple loss of the ability to charge interest and it is quite amusing the OFT have only picked up on that part in this letter.

[Nibbler]

Re: OFT writes to banks and building societies following recent CCA failures

More cynicism from me

The OFT letter specifically does not mention the CCA 2006

It does actually. In a roundabout way.




"Arrears notices" under Part VII are a key provision/amendment under CCA 2006.

It is, for example, failure to provide these that can render the debtor not liable to pay interest or default sums while the breach continues.

http://www.legislation.gov.uk/ukpga/...lt%20notice%22

[PlanB]

Re: OFT writes to banks and building societies following recent CCA failures

I agree with you, there are much worse consequences to non compliance than a simple loss of the ability to charge interest and it is quite amusing the OFT have only picked up on that part in this letter.

I think the penultimate paragraph that letter says it all. She refers to the handover of regulation from the OFT to the FCA next April and advises the lenders that any information they send her may/will be passed on. As far as I'm aware some OFT senior staff are already on secondment to the FCA to help with the handover. Maybe this letter was inspired by the FCA on a fact-finding mission. Hopefully the FCA will take compliance more seriously, at least that's what CEO Martin Wheatley has promised.

http://www.credittoday.co.uk/article...-says-wheatley