Another query about DCA who cannot produce a credit agreement

[RV30]

Good morning

A lady I care for has an historic debt with a bank. She had a bank account with an overdraft of £2,000 which she could not pay off when she became unwell, and it defaulted in November 2020. Overdraft given much later, four years after account firs opened. In respect of the debt, no payments have been made since the date of default, and no acknowledgement of the debt has taken place.

A debt collection agency has written to her, in April this year, and she has not admitted the debt, but she asked for proof of debt.

The DCA responded: "This is a current account we hold and so due to this it is not regulated under the Consumer Credit Act and a copy of the credit agreement is not available. However, this would have been provided to you".

This seems contradictory. A current account does not require a Consumer Credit Act agreement or it does? If it does, why can they not produce it, and why do they add "this would have been provided to you"?

If the DCA is unable to produce the credit agreement, can they demand repayment of the debt? Can legal action take place at the County Court in the absence of the credit agreement?

I'm aware that a current account usually does not require a credit agreement, but when the bank later offered an overdraft of £2,000, that surely would require a credit agreement. As the DCA cannot produce this credit agreement for the overdraft, what is the legal position? I have tried to read up on the law but it is very complicated.

Strangely, the lady has checked her credit report recently and this debt shows on there, but was marked in Sept 2025 as "Satisfied" by the DCA. She has not paid them anything, so I wonder if this is either a mistake, or the DCA has cancelled the debt, due to lack of credit agreement. I cannot understand why it would be marked as "Satisfied" given there has been no payment.

Can anyone please advise.

Many thanks indeed.

Best wishes to all users of this forum.

[echat11]

a) A lady I care for has an historic debt with a bank. She had a bank account with an overdraft of £2,000 which she could not pay off when she became unwell, and it defaulted in November 2020. Overdraft given much later, four years after account firs opened. In respect of the debt, no payments have been made since the date of default, and no acknowledgement of the debt has taken place.

I don't have background information, but it might be a consideration. If the lady is elderly, in ill health, you have evidence of that, then ask the Creditor if they can write if off. If there is no chance of that money being paid back, then I'm sure the Creditor will consider it. The debt would have been purchaser for 'pennies'.

https://www.citizensadvice.org.uk/de...debt---letter/

If you can add evidence, Doctors letter, make sure you get Proof of Postage.

b) A debt collection agency has written to her, in April this year, and she has not admitted the debt, but she asked for proof of debt.

The DCA responded: "This is a current account we hold and so due to this it is not regulated under the Consumer Credit Act and a copy of the credit agreement is not available. However, this would have been provided to you".

When the account was opened, there would have been an agreement, although not regulated by the CCA 1974.

c) This seems contradictory. A current account does not require a Consumer Credit Act agreement or it does? If it does, why can they not produce it, and why do they add "this would have been provided to you"?

As b.

If the DCA is unable to produce the credit agreement, can they demand repayment of the debt? Can legal action take place at the County Court in the absence of the credit agreement?

They can file a claim, they need to provide evidence, the claim can be defended.

d) I'm aware that a current account usually does not require a credit agreement, but when the bank later offered an overdraft of £2,000, that surely would require a credit agreement. As the DCA cannot produce this credit agreement for the overdraft, what is the legal position? I have tried to read up on the law but it is very complicated.

Authorized overdrafts are covered by the CCA 1974.

e) Strangely, the lady has checked her credit report recently and this debt shows on there, but was marked in Sept 2025 as "Satisfied" by the DCA. She has not paid them anything, so I wonder if this is either a mistake, or the DCA has cancelled the debt, due to lack of credit agreement. I cannot understand why it would be marked as "Satisfied" given there has been no payment.

Unsure why they marked it as 'satisfied'. It might be worth checking the other CRA's.