CCA request for student overdraft?

Blaze36

I had a student overdraft which I took out in 2003. This has now been passed to Aktiv Kapital for collection. I defaulted on 31/08/2006.

I was wondering whether a CCA request would apply to this debt? I've been through the FAQs on CCA requests and it's not clear whether this type of debt would be covered by one. I opened the bank account when I was 11 and I don't remember signing anything when it changed to a student account with the overdraft.

Tixy

Hi Blaze

Overdrafts don't have a CCA

DGJsaver

No it doesnt , and have you really been through the FAQ`s? because it certainly DOES say Overdrafts are not applicable to CCA legislation

Blaze36

I went through the FAQs on the enforceability and templates page. If it was there, I must have missed it, sorry. Serves me right for speed reading.

I'm going through some information on the consumer action group forums at the moment and there are a few interesting threads on there suggesting that overdrafts are exempt from the CCA, depending on some conditions.

I'm too new to post links, or I'd post the link to the thread but this looks interesting (from the CAG forums after searching for CCA and overdrafts:

The s74 determination in respect of bank overdrafts (see Q1.4) 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.

Going by that, I'm assuming that I wasn't required to sign anything to say I agreed to the overdraft but the bank should have met the above conditions. So there's no CCA agreement but there should be SOMETHING that the bank has to produce to confirm they informed me of all of the above. I would say the fact that I've been charged interest also goes in my favour, as the amount I'm being asked to pay now is greater than the default amount.

DarkConvict

With the added loss of bank charges reclaiming thanks to the OFT, the best way to migrate any further costs on the overdraft is just to pay the amount outstanding and quiz the amounts later. The longer you hold out the more the charges will build up, and if you don't win it in court it will be expensive.