Bank overdraft?

[Onestepatatime]

Morning all,

can someone please clarify the position of overdrafts in relation to the CCA?
It is my understanding that they used to be covered under the cca but have since been removed?
is it the case that if overdraft is before xxxx date then it is covered by cca but after xxxx date it is no longer?

Reason being I have an OD that is with a DCA and I want to know my legal position, can I request a cca sec77-79?
I have touched on this before and was directed to miss-selling of package accounts although don't really understand what that's all about?
Thanks

[Amethyst]

Re: Bank overdraft?

No, Overdrafts aren't covered by the section ( Part V ) of the consumer credit act which includes the sections on credit agreements.

CCA sec 74 ( Exclusion of certain agreements from Part V ) Except as provided in subsections (1A) to (2), this Part does not apply to—
(b)a debtor-creditor agreement enabling the debtor to overdraw on a current account,

That was from 2010 (poss 2011 - sorry not certain on date) but before then the Determination was in force since 1989 ( same effect )

So no agreement for the purposes of sec 77-79.

dunno about the packaged accounts bit - maybe have you been paying for a packaged account and someone was suggesting you look at reclaiming those fees as missold ?

[Diana M]

Re: Bank overdraft?

can someone please clarify the position of overdrafts in relation to the CCA?

Section 78 CCA is applicable if an overdraft as been renewed annually since 2012.

Di

[Onestepatatime]

Re: Bank overdraft?

So is it the case with overdrafts that you'll just have to pay them off?

[Amethyst]

Re: Bank overdraft?

Ahh yes, I forget that, not many consumer overdrafts are renewed annually. What part details that btw?

[Onestepatatime]

Re: Bank overdraft?

Does this mean that they are not subject to any part of cca compliance such as DA,NA, statements of account etc?

[Amethyst]

Re: Bank overdraft?

So is it the case with overdrafts that you'll just have to pay them off?

Depends on the position of the overdraft really. What kind of account was it? Was it all spends or a large number of charges ? Unfair relationship ? How long ago was the account closed ? Has it been assigned properly ? etc etc

[Onestepatatime]

Re: Bank overdraft?

Account was current account platinum iirc, opened 1994ish, running continuous until default of 2011 following rta. Paid monthly premium for account charge/services. Tbf used a few of the services such as breakdown, mobile insurance, travel insurance etc. So was it mis-sold?
Without the statements I can not remember how the OD was reached other than to say I had to use it for living on following rta, could be that there are some charges incurred along the way??

perhaps a Sar to bank will show statements?
How would it be correctly assigned?

[Amethyst]

Re: Bank overdraft?

If you used the services included in the packaged account then it may not be missold - people who haven't used it and also had things like their own RAC/AA breakdown policy, mobile phones covered under household insurance, bought separate travel insurance etc may have been missold - or if they didn't even know they had these facilities or that they were paying for them. SO that's probably a no go for you as you used the products

Defaulted 2011 - do you know when ( pre Sept?) - any payments since ? could we be looking at statute barred at all ?

Yes a SAR to the bank will get you transactions lists - really you would want to show that it was the charges that pushed you into a debt cycle which resulted in your having to leave the account - the odd charge here and there probably wouldn't illustrate an unfair relationship. How long between stopping using and the account being defaulted ?and many charges in that period etc...

What DCA is it with, did you receive notice that the bank had sold it to the DCA etc?

How much we talking about ?

What's iirc stand for?

[Onestepatatime]

Re: Bank overdraft?

Default 10/2011, payments until 2016 so forget SB- my bad!
I'd have to check on dates stopped using, something tells me it was 03/2010 time??
domt remember a specific notice of assignment think it was more an introductory/information letter from DCA -Cabot.

Amount just shy of £5k
iirc -if I remember correctly.

[Amethyst]

Re: Bank overdraft?

ahhhhh lol, ( I used to think lol was lots of love ) I'll catch up one day xx

Well at least it should fall off your credit file very soon ( every cloud )

Cabot UK or Europe ? ( potential regulatory issues ) ( yes scraping the barrel )

Quite a long stretch between stopping use and default. Were you paying IN between 03/2010 and 10/2011 ?
What is your settlement position / intention if it came to it?

[Onestepatatime]

Re: Bank overdraft?

If no strong argument at all to defend, then I'd have to weigh up if I had any argument I'd push for a reduced settlement, if no strength of argument then probably resume monthly nominal payment. ?? Now bearing in mind they do hold other accounts which I may have strong arguments to defend against any claim then maybe I could use a little bargaining ??

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I believe owners are the non regulated one but administrators are a regulated one.