CCA Request none compliance but money still taken

Suzi9998

Hi all

I bank and have a credit card with Lloyds TSB.

After frustration with the increasing interest rates on my credit card I did a CCA request wanting to see how they could legally increase interest rates with no warning or explanation.

The CCA request has not been complied with and the account went into default on 23 February 2009. It is my understanding that they can not request payment until the CCA request is satisfied, on this understanding I cancelled my direct debit and wrote to the credit card services team to inform them that they are in default and that I will recommence payment when they supply me with the CCA.

In March they have added interest, late payment charges and now taken a £170 payment from my current account without my permission!!

Has this happened to anyone else? Is there anything I can do? they are surely now breaking the law?

Any help would be much appreciated!

97trophy

Suzi9998 wrote: »

In March they have added interest, late payment charges and now taken a £170 payment from my current account without my permission!!

Has this happened to anyone else? Is there anything I can do? they are surely now breaking the law?

All the banks have this offset clause, which enables them to reclaim a debt from an account you have with them. Lloyds have broken no law.

The only thing you can do is have a credit card with someone other then the bank where you have your current account.

Suzi9998

Really? How can that be right? The credit card agreement is temporarily unenforcable by law until they provide an agreement.

Has anyone else got any thoughts on this please?

talana

After frustration with the increasing interest rates on my credit card I did a CCA request wanting to see how they could legally increase interest rates with no warning or explanation.

They probably haven't replied to your CCA request because it doesn't really make any sense. Unless specified otherwise, credit cards are variable interest rate products and they can basically set the rate to whatever they like.

I'm afraid your CCA request is irrelevant if submitted on that basis.

Have you looked at the Ts & Cs of your card instead?

aj2703

talana wrote: »

They probably haven't replied to your CCA request because it doesn't really make any sense. Unless specified otherwise, credit cards are variable interest rate products and they can basically set the rate to whatever they like.

I'm afraid your CCA request is irrelevant if submitted on that basis.

Have you looked at the Ts & Cs of your card instead?

I wasn't aware you had to submit the request on any basis .

OP. Did you send the request template letters from this site..?. If so did you send it recorded delivery..?. http://forums.moneysavingexpert.com/showthread.html?t=963087

Template Letters here

talana

I wasn't aware you had to submit the request on any basis .

Fair point I suppose.
They should I guess still respond to the CCA request even if the relevance to the OP's point is rather tenuous (pointing the OP at the T&Cs would be more helpful though)

97trophy

Suzi9998 wrote: »

Really? How can that be right?

You signed the banks contract. It is in the small print.

Suzi9998 wrote: »

The credit card agreement is temporarily unenforcable by law until they provide an agreement.

They might not be able to take you to court but that does not mean they cant debit your current account.

aj2703

97trophy wrote: »

You signed the banks contract. It is in the small print.



They might not be able to take you to court but that does not mean they cant debit your current account.

I think you are wrong. If the OP has sent the letters, (i think the 2nd letter) then places the account in dispute, therefore no more collections can be attempted until the dispute ends.

System

OP: Your credit card is almost certainly variable rate, Lloyds can therefore change the rate at will. However they should have given you a reasonable notice period (typically 30 days) and this would be in the Ts & Cs and is contained within the banking code. IMHO the best course of action would have been a formal compliant. I'm not really sure where you should go from here, but I will say that you'll probably get a full response over on the Consumer Action Group forums, there are some very knowledgeable individuals who will almost certainly be able to give you a full answer.

http://www.consumeractiongroup.co.uk/forum/

Sorry to hijack the thread a bit, but would like to add.....

Before anybody considers withholding payment due to a CCA request in progress (whatever the motive for doing so) it is worth considering that there can be numerous short and long term consequences, for example:

• your credit files can be trashed (missed payment markers, defaults)
• default charges applied to the account
• Offset clauses invoked on other accounts
• Harassment by debt collection agencies

Just to make clear, I am fully aware that companies are legally obliged to comply with the CCA request and that collection activity should stop during that period, however this is very often not the case and it can be a struggle to put things right again.

I'm not making any judgment or seeking to enter into any moral debate, I just think people should be aware and consider things carefully before contemplating withholding payments.

UNDERGROUND

aj2703

UNDERGROUND wrote: »

OP: Your credit card is almost certainly variable rate, Lloyds can therefore change the rate at will. However they should have given you a reasonable notice period (typically 30 days) and this would be in the Ts & Cs and is contained within the banking code. IMHO the best course of action would have been a formal compliant. I'm not really sure where you should go from here, but I will say that you'll probably get a full response over on the Consumer Action Group forums, there are some very knowledgeable individuals who will almost certainly be able to give you a full answer.

http://www.consumeractiongroup.co.uk/forum/

Sorry to hijack the thread a bit, but would like to add.....

Before anybody considers withholding payment due to a CCA request in progress (whatever the motive for doing so) it is worth considering that there can be numerous short and long term consequences, for example:

• your credit files can be trashed (missed payment markers, defaults)
• default charges applied to the account
• Offset clauses invoked on other accounts
• Harassment by debt collection agencies

Just to make clear, I am fully aware that companies are legally obliged to comply with the CCA request and that collection activity should stop during that period, however this is very often not the case and it can be a struggle to put things right again.

I'm not making any judgment or seeking to enter into any moral debate, I just think people should be aware and consider things carefully before contemplating withholding payments.

UNDERGROUND

Agreed with totally , although this is a High Street Bank and you would "presume" they would act accordingly. I would expect the sort of problems the OP has had from a DCA.

OP This might be of help to you too.. http://www.consumeractiongroup.co.uk/forum/general-debt-issues/162851-consumer-credit-agreements-guide.html

System

aj2703 wrote: »

OP This might be of help to you too.. http://www.consumeractiongroup.co.uk/forum/general-debt-issues/162851-consumer-credit-agreements-guide.html

I'm gunna bookmark this link and post it every time an enforceability post / query comes up!

Cheers!

UNDERGROUND