Next Directory - No CCA agreement - what next?

[pjb012]

Hi all,

I would like some advice please on my partner's Next Directory account which was opened around start of 2007.

Payments have been made in full and on time etc over the 10 years, and the account is fully up to date. My partner's CRA records are spotless and we do not want Defaults or any AP markers etc to be recorded.

Before Christmas, the account was suspended out of the blue and now the credit limit is tracking down to keep in sync with the current outstanding balance.

My partner emailed a complaint of being unable to use the account, and in response received a goodwill payment. The complaint also asked for the credit limit to be reinstated otherwise no choice but to close the account and request a copy of the CCA. The limit was not reinstated.

This week, a letter has been received from Next that basically says 'sorry - but we dont have a record of the signed agreement'.

The letter also helpfully encloses a new CCA for my partner to sign and return along with various printouts of notice of variations and a screen print out of the outstanding balance on the account.

Obviously, we are aware that the account is now unenforceable. However, we dont want any adverse markers to be recorded on the CRAs.

Has anybody else been in a similar position, and what options are open to us now? i.e. balance reduction, 0% interest, reclaim of interest paid to date etc?

Alternatively, given that Next do not have permission to process my partner's data, can they be asked to close the account and remove all data from the CRA?

thanks in advance...

[Debt Camel]

Re: Next Directory - No CCA agreement - what next?

No CCA means that Next or any subsequent debt collector can't enforce the debt via the courts.

It doesn't mean the debt is illegal in any way. You have no grounds for asking for a return of interest or a balance reduction.

The ICO isn;t going to agree that Next are not allowed to process your date - after all you have been happily making payments to this debt for ages, it would be hard to dispute that it is your debt.

If you don't make the usual repayments, this will be reflected on your credit record as missed payments then a default. So it's your choice, repay the debt or get a spoiled credit record.

[nemesis45]

Re: Next Directory - No CCA agreement - what next?

Hi,

Would the account have been opened online?

The " creditor " and/or any debt collector involved if sent a CCA request can provide
a reconstituted agreement to satisfy the request, this together with the compelling
evidence of orders and payment would be used to enforce payment vis the courts.
The account exists and is in use, the company is right to continue reporting to CRA's.

nem

[Amethyst]

Re: Next Directory - No CCA agreement - what next?

You could try a negotiation with Next - you want to pay it off, they have basically ended your agreement with them without notice ( and 'recompensed' you for that ) - so youhave arguments and they have no agreement - so use that to ask them to stop charging any interest on the account and you will pay it off at X per month - or if you are in a position to, make a reduced full and final settlement - you don't know until you try.

[pjb012]

Re: Next Directory - No CCA agreement - what next?

Thanks all for the replies.

I should have said before that the goodwill payment was just £20 and the interest charge this month was £35. Ah well... it all helps I suppose!

I'm not sure how the account was opened. Probably not by phone so either an internet or in-store order. Either way, Next don't seem to have the agreement and wants my partner to sign a new one which won't be happening. The new agreement to sign is a current one, not original T&Cs (I can tell because APR% is 24.9 on there which only came into effect last year according to the notice of variations)

So from your replies, there are broadly three choices for my partner...

1) Decide they dont want to pay the debt and hope the credit agreement isnt found. Lots of gnashing and wailing of teeth, but ultimately not a lot Next can do about it unless a signed agreement appears. Default registered with CRAs.
2) Decide to continue operating the account as if nothing has happened, although not expecting a reinstatement of credit limit any more as obviously too much risk for Next given the lack of agreement in place.
3) Whilst still continuing to pay the minimum payments etc, point out that although the account is unenforceable, as a gesture of goodwill partner is willing to continue paying off the account, but wants x,y,z.

I vaguely remember that quite a few loan companies had to refund lots of interest early last year due to not complying with CCA (issues with annual statements?). Given that this account surely cannot be compliant due to lack of signed agreement, i am thinking my partner's negotiation under option 3) could be to request a partial refund of interest to reduce the overall balance, plus the 0% interest going forward?...

[Debt Camel]

Re: Next Directory - No CCA agreement - what next?

Given that this account surely cannot be compliant due to lack of signed agreement

The fact they can't find the CCA doesn't mean the account is in breach of consumer credit legislation. Sorry but you are clutching at straws here. It isn't unusual for a CCA agreement to be missing, it has no effect on anything apart from the creditors ability to take you to court.

If there has already been a default on the account, then you would now be in a strong position as effectively they couldn't do anything to harm you. But if you want to keep your good credit record you are going to have to pay this debt.

[pjb012]

Re: Next Directory - No CCA agreement - what next?

ok thanks Debt Camel. Crystal clear the message you are giving in both of your posts.

many thanks