CCA Loan Debt

My brother in law sent off a CCA request to Arrow Global. in Feb 2008. He received back what I think is OK, but want to check. The agreement returned contains:

Name and address
Amount of loan £5000
Monthly Repayment £99.46
Current Rate of Interest 20.85% per annum
Annual Percentage Rate (APR) 22.9
Estimated Number of Repayments 120

It also has a photocopied sheet of terms and Conditions

However the agreement is not signed or dated by either party - is this acceptable?

Secondly he has been paying £60 per month toawards this, but since being sold to Arrow Global the debt has escalated from what was originally owed to £30000. It has increased £10000 in one year despite him making the monthly £60 payments.

Tonight I advised him to cancel his standing order and wrote a letter asking for a true copy (the above may already provide that?) and stating that as the debt has increased to £30000 he cannot see how that can be so no longer acknowledges the debt. The letter then goes on with another standard CCA request.

I'm thinking 12+2 days into dispute, then as they are refusing to send a detailed list of charges the only way I know is to pay £10 and SAR them (would this also produce a copy of the original agreement if they have it).

I would appreciate any advice on the best way forward as he's been making monthly payments for 2 years so has really acknowledged the debt. However for it to balloon from an initial loan for £5000 to a demand for £30000 seems crazy. What is the best way to fight this? I did tell him another CCA request MAY be a waste of time, but he wants it sent anyway.

Thanks in advance,

Caspar

[PriorityOne]

Re: CCA Loan Debt

Have just read ths post.

When you send a CCA request, you're also entitled to a Statement of Account with it. On the face of things, the doc. they've sent you could apply to anyone and without a Statement of Account, you're not able to see how much has been whacked on in fees and charges either. The rate of interest seems very high as well.... does your brother remember taking out the loan with such a high rate of interest?

As so much time has now gone by without your brother querying anything, I'd be inclined to issue a fresh CCA request, making sure that you include a line about reconstructed Agreements and if they send one, what's happened to the original? You could also include a line at this stage asking them to confirm or deny holding a properly executed Agreement under CPUTR 2008 and see what happens. Something like that... by rec. delivery.

With the CCA, you also need a Statement of Account, to include a full breakdown of all fees and charges that have been added since they took over the loan.

Sounds like daylight robbery to me....

[Caspar]

Re: CCA Loan Debt

Thanks. Yes he knows the interest rate was madness. I've advised him to do another CCA (deadline in two days time, nothing heard yet). Didn't realise about the statement of account bit with a CCA - thank you for that!