Annual Loan Statements & CCA

[mrginger]

Hi all,

I had a letter from my bank HSBC stating that on my loan they have reviewed the annual loan statements and have found that "we didn't remind you of your right to make partial prepayments at any time during the term of the loan" it goes on to say that they are going to refund me all the interest because of this mistake

However I am really interested if the above statement and if it is part of the 2006 CCA section 77 introduced in October 2008, or some other act at a later date, I have searched a lot but cannot find any reference to this actual statement.

Would any of you legalbeagles be able to help on on this?

[nemesis45]

Re: Annual Loan Statements & CCA

Hi all,

I had a letter from my bank HSBC stating that on my loan they have reviewed the annual loan statements and have found that "we didn't remind you of your right to make partial prepayments at any time during the term of the loan" it goes on to say that they are going to refund me all the interest because of this mistake

However I am really interested if the above statement and if it is part of the 2006 CCA section 77 introduced in October 2008, or some other act at a later date, I have searched a lot but cannot find any reference to this actual statement.

Would any of you legalbeagles be able to help on on this?

There has been a lot of " soul searching" amongst the big banks in regards to terms and condition on a number of financial products from loans, credit cards to overdrafts. Barclays and NW that I know of have been writing to customers after reviewing agreements and then making payments of £25 - £50 in compensation and some as in your case refunding interest paid.

I believe this is more in line with the FCA looking more closely at credit agreements than anything to do with CCA 1974. ( having a had a refund personally last week) Just be thankful for the windfall

nem

[mrginger]

Re: Annual Loan Statements & CCA

I think it is to do with one of these acts the 2006 act 77a state that the interest charges are not enforceable if the back fail to conform to certain points such as missing information on a statement, this is why I think the bank made the refund, don't get me wrong I am thankful for the windfall over what seems like a technicality and expect the bank is being proactive to ward off a load of claims companies trying to get in on the act.

It's just that I would like to know where in what legislation it states "remind you of your right to make partial prepayments at any time during the term of the loan" just out of interest

[nemesis45]

Re: Annual Loan Statements & CCA

[QUOTE=mrginger;561392]I think it is to do with one of these acts the 2006 act 77a state that the interest charges are not enforceable if the back fail to conform to certain points such as missing information on a statement, this is why I think the bank made the refund, don't get me wrong I am thankful for the windfall over what seems like a technicality and expect the bank is being proactive to ward off a load of claims companies trying to get in on the act.
Correct, but this is a proactive and continuing drive by the banks to sort out a long running scenario of faulty paperwork.
I don't think (as far as I can recall anything more in CCA 1974 (as amended) this more of a shortcoming in the banks " agreements " that is being corrected.

nem