Does a CCA apply to an overdraft debt?

andyhm

Hi

I have an overdraft debt of approx £10k that my bank has moved onto a DCA - I sent a standard CCA request letter and the bank replied (eventually!) saying that an overdraft doesn't have a CCA but that bank statements show the size of the debt.

Anybody any ideas where I go from here?

oscar52

No idea where to go from here - i expect someone will know and be along soon, but CCA requests DONT apply to overdrafts.

fermi

I'm afraid an overdraft does not have a CCA.

The Office of Fair Trading has made a determination under s74 of the Consumer Credit Act 1974 that an overdraft on a current account is exempt from having a CCA in a form that you can request.

From the OFT:

The s74 determination in respect of bank overdrafts applies subject to the following conditions:

• the creditor must inform the OFT in writing of his general intention to enter into such agreements;
• the debtor must be informed, at or before the time an agreement is concluded, of the following:

o the credit limit (if any)
o the annual rate of interest and any charges applicable, and the conditions under which these may be varied
o the procedure for terminating the agreement;

• the above information must be confirmed in writing.

Furthermore, where a debtor overdraws a current account with the tacit agreement of the creditor, and the account remains overdrawn for more than three months, the creditor must inform the debtor in writing not later than seven days after the end of that period of the annual rate of interest and any charges applicable.

jessjess_2

What can you do then, if a DCA is chasing this?

Broken_hearted

Not a lot. Come up with a payment plan?

jessjess_2

surely £10k is difficult to pay back. what options does the DCA have if you dont have the money?

Burlesque_Babe

there are lots of people on the DFW board paying back unsecured 10k sums. If the OP pays nothing, the DCA can go for a CCJ. The OP needs to be making an offer to start paying it back, even if it's at a token amount.

Why not put your SOA up on the board and we can see how much you have free each month to be able to offer them?

jessjess_2

Burlesque_Babe wrote: »

there are lots of people on the DFW board paying back unsecured 10k sums. If the OP pays nothing, the DCA can go for a CCJ. The OP needs to be making an offer to start paying it back, even if it's at a token amount.

Why not put your SOA up on the board and we can see how much you have free each month to be able to offer them?

Andyhm, give it a go

andyhm

Hi all

thanks to all for your input.
Seems I am backed into a corner and if they go for the CCJ option I am thinking that I will hit the button marked Bankruptcy - no intention of paying this back for years and years! If I pay a token amount they will want to review it every 6 months and I will never have any disposable income - 10k takes a lot of paying back

Broken_hearted

It took a lot of spending too.

meerkat2007

And some people are - and have been - paying back considerably more.