Application Form - Should bank Keep???

TheRedAdmiral

An application form, in my opinion, is the basis of any contract between the lender and the borrower (bank and individual) and, as such, I believe that this document should be kept - in some form - until the account is closed.

Arguably it should be kept for 6 years after to comply with the Limitation Act.

I am working on a situation where a bank account was opened, in 1997 with Lloyds TSB, where no application form was ever signed. The person involved had a friend who worked at Lloyds, in 1997, and as a favour they simply opened the account over the phone. No T&Cs were ever signed and certainly no authority was ever agreed to release info to CRAs.

I have requested a copy of the Application Form from Lloyds, knowing they dont have it, to which they have replied:

"Owing to the length of time since the account was opened we no longer have the application form on file".

What are your views on this?

roonaldo

why are you asking for documentation when you know you they dont have it? for what reason?
also for a bank account they would not need to keep the form (if it existed) for more than six years after it opened.

dunstonh

There is no legal requirement for them to keep anything. However, it is good common sense from a legal point of view to do so.

I am working on a situation where a bank account was opened, in 1997 with Lloyds TSB, where no application form was ever signed. The person involved had a friend who worked at Lloyds, in 1997, and as a favour they simply opened the account over the phone. No T&Cs were ever signed and certainly no authority was ever agreed to release info to CRAs.

That was quite normal in the 90s. However, a signature is not necessarily required. Issuing the terms and then using the account could be sufficient as by using it you agree to the terms. (not saying it is but its an argument that could apply). Banks periodically send out revised T&C and if you continue to use the account after getting those you are in agreeing to those terms.

In the early years of the data protection act, the banks, and many others, destroyed things over 6 years old. it wasnt until many years later that it became clear that you did not have to do this. Given the recent court rulings that that lenders dont have to supply original documents signed by the borrower but a true copy, its probably fair to assume that the same would apply to other credit facilities.