No Loan Statements For 3 Years

rugbymum

Hope it's a quickie.
I'm on a DMP. One of my creditors is Black Horse. I have NEVER received a statement for this loan. I wrote and asked for one because they have charged me so much in additional fees & interest that I now owe more than I did in February!:eek:

Could someone please tell me if BH have a statutory duty to send annual statements and if I can quote this in my next letter to them?

themagics

they shud i think tho we have car finance wit them and they havent sent us a thing either so u in your rights to ask for a break down of things as its your account they are obliged to do so.

GeorgeUK

I forgot all about that.
There's even a bit stating that for the period where a statement is not produced, interest should not be applied.

Introduction

The Consumer Credit Act and its amendments affect all those who use credit to buy goods and or services, for example, on hire-purchase agreements or using a store credit card. The Act governs the licensing of, and other controls, on traders who supply credit, or goods and services on credit. It is therefore a valuable tool to have knowledge of how it works at your fingertips.



This article explains a recent change to Consumer Credit law – the CCA 2006. Specifically, it explains the requirement for a statement of money owed and paid.



Required statement

Section 6 of the Consumer Credit Act 2006 inserts a new section (s77A) whereby a statement must be provided if the agreement is a fixed sum credit agreement under section 77A. The statement should explain the money borrowed, money paid, interest in all cases and the outstanding amount.



Particulars

The creditor under a regulated agreement for fixed sum credit:



- shall (with in the period of one year beginning with the day after the day on which the agreement is made), give the debtor a statement under this section; and

- after the giving of that statement, shall give the debtor further statements under this section at intervals of not more than one year.



Failure to provide the statement

If the creditor fails to give the debtor an annual statement, then he is not entitled to enforce the agreement during the period of his noncompliance and the debtor is not liable to pay any interest during this period.



The debtor is also not liable to pay any default sum that would have become payable during the period of non-compliance or would have become payable after the end of that period in connection with a breach of the agreement occurring during that period. However a creditor will not be required to give the debtor an annual statement if there is no further sums payable under the agreement.



Further provisions relating to running account credit agreements

Section 7 of CCA 2006 inserts a new section (78(4A) of the 1974 Act) which requires creditors to issue further statements to debtors setting out specified information in respect of running account credit agreements.



The statements must be provided at intervals of not more than 12 months. Creditors may further be required to include specified information about the consequence of failing to make repayments, or only making minimum repayments.



The Dispensing Notice

If there are two or more debtors, a debtor may provide a ‘dispensing notice’ to the creditor to the effect that the creditor is not obliged to provide a second statement to that debtor. However, dispensing notices will not be effective if that would mean that neither debtor will receive a statement.

source: http://www.netlawman.co.uk/info/required-statements-regulated-agreements.php

themagics

so let me get this right we have had two cars on finance and not recieved any statements at all for either one is now paid off the other next year so because they did not provide statements they couldn't have charged interest is that right all we ever had from one company was constant letters telling us they charging £30 for late payments

newlywed

Does that only apply on loans taken out after 2006 when that came into force?

I've never had a statement for my loan taken out in 2005 Got no idea how much is paid and how much left

tyllwyd

I've had a look online and as far as I can see the relevant part of s 6 of the Consumer Credit Act 2006 wasn't brought into force until 1 October 2008. I doubt it would be restrospective.
http://www.berr.gov.uk/whatwedo/consumers/consumer-finance/credit-act-2006/index.html
http://www.opsi.gov.uk/si/si2007/uksi_20073300_en_1

rugbymum

I LOVE YOU GEORGE

Any idea how I could word a letter to that effect? I took the loan out in 2005, so I assume I should have recieved statements in November 2006/7 & 8?

themagics

tyllwyd wrote: »

I've had a look online and as far as I can see the relevant part of s 6 of the Consumer Credit Act 2006 wasn't brought into force until 1 October 2008. I doubt it would be restrospective.
http://www.berr.gov.uk/whatwedo/consumers/consumer-finance/credit-act-2006/index.html
http://www.opsi.gov.uk/si/si2007/uksi_20073300_en_1

ah right so we should receive statements from now on speakin of the devils a black horse letter just arrived..... and guess what its a notice of arrears which states the amount left owing on the agreement and the amount outstanding (charges etc) also is another letter in with it saying we are not behind in payments but they have to notify us under cca 1974 ... funny how they ca use it

rugbymum

tyllwyd wrote: »

I've had a look online and as far as I can see the relevant part of s 6 of the Consumer Credit Act 2006 wasn't brought into force until 1 October 2008. I doubt it would be restrospective.
http://www.berr.gov.uk/whatwedo/consumers/consumer-finance/credit-act-2006/index.html
http://www.opsi.gov.uk/si/si2007/uksi_20073300_en_1

And yet ALL my other creditors have always sent me annual statements......

GeorgeUK

I was unsure when the CCA2006 was implemented - i knew about 6th April 2007 for the prescribed terms etc, but wasn't sure about other aspects of the Act. Great find there tyllwyd - i was struggling through the actual act to see if it mentioned anything about when the enforcement would be.

So it looks like Oct 08 is when that part was implemented rugbymum. They may take up to a year from then before issuing you a statement. Pity it was so late in being implemented.

rugbymum

tyllwyd wrote: »

I've had a look online and as far as I can see the relevant part of s 6 of the Consumer Credit Act 2006 wasn't brought into force until 1 October 2008. I doubt it would be restrospective.
http://www.berr.gov.uk/whatwedo/consumers/consumer-finance/credit-act-2006/index.html
http://www.opsi.gov.uk/si/si2007/uksi_20073300_en_1

But shouldn't I now have one, or do I have to wait until next year?
Can't I quote the relevant legislation (as per the section & date) asking for my statement for the past year (which is what I'm after)?