Debt in dispute, bank ignoring my request

martin15

I have a DMP with CCCS. One of the creditors is my old bank who I still hold an account with. The account is overdrawn but I am claiming 3x the overdraft in charges etc.

I have requested in writing several times to put the account "in dispute". They refuse to acknowledge this.

Now they've sold the debt to an external collector.

I thought that they couldn't do this. I can't find any statute that actually prevents this? OFT guidelines aren't binding I bet.

What does putting the debt "in dispute" actually do for me?

Thanks,

Martin

martin15

Having read the OFT release about McKenzie Hall, it seems that the key point is the definition of "in dispute".

"A debt is considered as in dispute where:

a) it has been reasonably demonstrated that the debt has been previously paid;

b) a request under section 77 or 78 of the Consumer Credit Act 1974 has not been complied with, and this prevents the agreement being enforced without the permission of the court;

c) it is reasonably believed that the debt may have been incurred as a result of identity theft or fraud; or

d) it is reasonably doubted that the person being pursued for the debt is the actual debtor."

If my argument is that the amount I am claiming was unlawfully taken from the account is more than the overdraft, does this constitute part A) above?

Thanks

Martin

martin15

bump? Please?

Thanks,

Martin

DarkConvict

A) You have not paid the debt
Overdrafts are not covered by CCA 1974 or CCA 2006.
C) n/a
D) n/a

Neither 4 parts apply, what you are disputing is the charge. Problem is, the charges have not been defined as illegal, the high court favoured the banks and the OFT gave up fighting. Your only hope is going to be trying on the reclaim forums for further advice on claiming it back.

martin15

DarkConvict wrote: »

A) You have not paid the debt
Overdrafts are not covered by CCA 1974 or CCA 2006.
C) n/a
D) n/a

Neither 4 parts apply, what you are disputing is the charge. Problem is, the charges have not been defined as illegal, the high court favoured the banks and the OFT gave up fighting. Your only hope is going to be trying on the reclaim forums for further advice on claiming it back.

Hi, thanks for replying. As for part A), they are claiming an overdraft of just over £1k, but I calculate about £2400 in charges, with interest taking it to £3100 ish. So without the charges, the debt would not exist, or to put it another way, I would have repaid the overdraft.

Are these the only grounds for putting an account in dispute?

thanks,

Martin