Overdraft Problem ... Interesting Issue

bargainhunter90

the_insider wrote: »

The CCA does not apply to an overdraft so that's a non-starter. And the OP has confirmed that she has received correspondence in the last six years. It is almost impossible to have a debt written off as statute barred as the lender only has to be able to prove that they have made reasonable attempts to contact the debtor and it's unlikely that it will have sat unnoticed for 6 years. The best bet is to go back to the bank and discuss it (I always recommend calling but frequently get shouted down for it because posters refuse to believe that Customer Relations staff at the bank know what they're talking about).
Is your partner in a position to make any payments to the balance to prevent further action? Unfortunately she is liable for it but she may be able to take her ex to small claims court for the amount owed if she can prove that he ran up the bill. But this is a civil matter and the bank won't be able to get involved, other than sending statements and confirming which card etc was used for the transactions.

Overdrafts come under Section 10 of the CCA act

10.—(1) For the purposes of this Act—
(a) running-account credit is a facility under a personal credit agreement whereby
the debtor is enabled to receive from time to time (whether in his own person, or
by another person) from the creditor or a third party cash, goods and services (or
any of them) to an amount or value such that, taking into account payments
made by or to the credit of the debtor, the credit limit (if any) is not at any time
exceeded; and
(b) fixed-sum credit is any other facility under a personal credit agreement whereby
the debtor is enabled to receive credit (whether in one amount or by
instalments).
(2) In relation to running-account credit, " credit limit" means, as respects any period,
the maximum debit balance which, under the credit agreement, is allowed to stand on
the account during that period, disregarding any term of the agreement allowing that
maximum to be exceeded merely temporarily.
(3) For the purposes of section 8(2), running-account credit shall be taken not to
exceed the amount specified in that subsection (" the specified amount") if—
(a) the credit limit does not exceed the specified amount; or
(b) whether or not there is a credit limit, and if there is, notwithstanding that it
exceeds the specified amount,—
(i) the debtor is not enabled to draw at any one time an amount which, so far as
(having regard to section 9(4)) it represents credit, exceeds the specified
amount, or
(ii) the agreement provides that, if the debit balance rises above a given
amount (not exceeding the specified amount), the rate of the total charge for
credit increases or any other condition favouring the creditor or his associate
comes into operation, or
(iii) at the time the agreement is made it is probable, having regard to the
terms of the agreement and any other relevant considerations, that the debit
balance will not at any time rise above the specified amount.

Court case Coutts v Sebastyen determined it

Way to proceed is to instruct your solicitor to make a Subject Access Request recorded delivery or do it yourself... They need to provide you with the original agreement to prove the debt.