CCA Letter for Overdraft Debt?

Sukey

I've received a letter this week from Cabot Financial who say they have now taken over an overdraft I have with Abbey National. For the last year I have been paying a monthly amount on this overdraft to Buchanan Clark & Wells.

I have two questions:
Firstly, should I continue paying Buchanan Clark & Wells?
Secondly, can I send a CCA letter to hold Cabot at bay, or is this letter not applicable for an overdraft?

Any advice much appreciated.
Thanks!
Suke

RAS

Sukey

CCAs do not apply to overdrafts.

Have you tried reclaiming charges on this account?

Sukey

I'm not sure that I've actually had any charges. I've never had any correspondence from Abbey National regarding charges and the original amount owed has barely changed.

Thanks for answering my original query. I guess I should just provide them with my SOA and ask them if I can continue paying the amount I was paying to Buchanan Clark & Wells for this account. (BTW have now phoned BC&W and they advised that they have closed this account, so am guessing Cabot are my new masters).

Suke

tirednurse_2

Hi Sukey,

Just wanted to say that Cabot have bought my Abbey overdraft debt too.
Unfortunately, my overdraft is mainly fees which I didn't get round to reclaiming.

Good luck with Cabot.

MONTY_2

Make sure that you get an agreement with Cabot for any payments which show any charges that they may add. Check that they have freezed all interest and ensure your payments are on time. I have been making payments to them £550 and they have charged me £900 because I was three days late getting to the post office.

GeorgeUK

Although you can't do a CCA for an overdraft (as there usually isn't one), they are still required to provide you with a letter stating what the charges, interest rate and limit is. I read this on the consumeractiongroup forum and don't really have much detail. As i recall, if you send a subject access request (SAR) and the letter is not included in the documentation, then the debt may be unenforcable.

I'm afraid i never really looked into this as i never had an overdraft, but overdrafts are governed under the Consumer Credit Act - they just don't need the same documentation as a creditcard or loan. Hopefully someone else will have a little more info on it.

Hippocampus

Cabot ghave been known to, and it is unlawful if they have, apply interest at their own fictitious rate.

Bear in mind that the MAXIMUM they can charge is the same as that applicable in the terms of the original overdraft, so it is important to check that Cabot haven't been a little bit naughty.

For anyone that has been stung by Cabot, might I suggest that you make a formal complaint to Cabot about it, and write to tell them that you will not be paying excessive interest rates, nor will you contemplate paying any sort of charges that might be construed as a penalty.

In fact, if you SAR Cabot, check where they have written on your file PENALTY, and tell them to refund that money, otherwise you will be esclating the complaint to the Financial Ombudsman Service.

Personally, I'm not paying Cabot a penny. But I can understand why some people do.