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Loans Written Off on Terms and Conditions
Comments
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They have 14 days to send you a CCA. If you do not receive one in this time you can stop paying them. If at any time after the 14 days a CCA is provided then you might have to start repayments. You just have to check it then to see if it is enforcable.
But no CCA no pay.0 -
They have 14 days to send you a CCA. If you do not receive one in this time you can stop paying them. If at any time after the 14 days a CCA is provided then you might have to start repayments. You just have to check it then to see if it is enforcable.
But no CCA no pay.
That is very dangerous advice. To advise someone they can just stop paying is IMO completely irresponsible without pointing out the consequences.
Please read the link I posted in post #56 for more information.
An argument that, during the period of time when the bank was not compliant with section 77(1), the bank's rights had been completely extinguished or the bank had been deprived of those rights was an artificial one. The rights continued to exist while being unenforceable during the period of non-compliance.
The Act does not define what constitutes "enforcement" and therefore does not define what actions a creditor may not undertake during a period when the agreement is unenforceable. The debtor argued that any coercive action to compel or secure performance of the removed obligation or liability of the debtor to make repayment amounted to "enforcement" including any reporting to CRAs.
Mr Justice Flaux concluded that not only did reporting to the various CRAs not amount to enforcement, but that a number of other activities did not constitute enforcement either, such as:- reporting to CRAs without also telling them that the agreement is currently unenforceable
- disseminating or threatening to disseminate the debtor's personal data in respect of the agreement to any third party
- demanding payment from the debtor
- issuing a default notice to the debtor
- threatening legal action
- instructing a third party to demand payment or otherwise to seek to procure payment
- bringing proceedings.
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Thank you for all your advice. I have now received this letter -
Thank you for your recent letter regarding the above MBNA Loan Account. I have now concluded my investigation into the complaint and would like to take this opportunity to outline my findings.
I can confirm that MBNA is able to provide an exact photocopy of the original credit agreement which was entered into in respect of an MBNA loan. I can confirm the balance outstanding as of today’s date is ????.
MBNA’s position is that original loan agreement which was entered into was correctly drafted and lawfully executed. As such, it created an enforceable and binding obligation for a customer to repay the contractual repayments at the agreed intervals and subject to the agreed interest charges. The original agreement would not be rendered wholly unenforceable if we could not locate a copy of the original agreement and as such, the obligation to repay would still be intact. If necessary, we would go to Court to seek an order to enforce the repayment obligations.
For the avoidance of any doubt, we would like to confirm that MBNA does not regard this account balance or your obligation to repay as being in dispute. For the reasons we have set out above, we are confident that you debt is owing and payable by you in accordance with the terms and conditions of the credit agreement which you have entered.
I hope that my response meets your expectations but should you have any further queries please contact the customer advocate office, on (blah blah blah) I am also enclosing a copy of our commitment to you leaflet , which explains our complaint handling process in greater detail. If we do not hear from you within eight weeks of the date of this letter we will assume that the matter is closed.
Do you think the matter is now closed?0 -
Typical reply fron MBNA.
In reply to Brock I have 2 accounts in which I have not received a CCA. Both have been put on hold by the DCAs, and no payments have been made for over 12 months and non have been asked for.
So no CCA no pay.0 -
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Iolanthe07 - I agree. Furthermore, the Limitation Act has provision to be disapplied if a respondent has sought to deceive a claimant - so if you say you do not live there when you do then you risk the court refusing to recognise a timebar for ever.
cornflakes2 - this sounds like MBNA is using a two stage complaint procedure. They are saying they assume you are happy with the outcome of the investigation but if not then you can write and say so within the next 8 weeks and they will look again.
If you do, then they MAY change their minds but either way they will then give you the chance to go to the Financial Ombudsman Service.
But, and it is a big "But", the Interim Chief Ombudsman said in a publication released today, "Sometimes a consumer (or their representative) asks us to declare a debt legally unenforceable, on the grounds of some alleged legal technicality, even though there is no dispute over the size of the debt – and no complaint that the financial business has behaved at all unfairly. The law requires us to decide cases on the basis of what is fair and reasonable – and we are unlikely to decide it would be fair and reasonable to agree to such a request."
He does go on to say "This does not prevent the consumer asking a judge to consider these points if the lender seeks to enforce the debt in court."
So, if you want to get out of a debt on a technicality, don't expect the Financial Ombudsman Service to help - you will have to go to court, with all the risk that entails.0
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