CCA for accounts question

TakingControl

I have been trying to clue myself up on the various information sheets available about CCA and I have found a few times that accounts opened before 2007 would require a CCA with a signature to be able to be enforcable?

Does anyone have any 'plain' explanation around this please?

My CC card was opened in 2003 so way before this date, so would this mean that a creditor could only enforce this in court if they have a original signed CCA from me?

king100

TakingControl wrote: »

I have been trying to clue myself up on the various information sheets available about CCA and I have found a few times that accounts opened before 2007 would require a CCA with a signature to be able to be enforcable?

Does anyone have any 'plain' explanation around this please?

My CC card was opened in 2003 so way before this date, so would this mean that a creditor could only enforce this in court if they have a original signed CCA from me?

No thye just need to show you your agreement that applies to your account.

PLEASE NOTE DUE TO RECENT LEGAL CASES THIS BELOW IS BEING REVIEWED.. 7th January 2010

IS MY AGREEMENT ENFORCEABLE( Via section 127(3) CCA1974)
PRESCRIBED TERMS FOR THE PURPOSES OF SECTIONS 61(1)(0) AND 127(3) OF THE
CONSUMER CREDIT ACT 1974 Taken from sced.6(1983/1553) regulations
(If you just want to find out, skip the bits in between the stars it’s just some extra information)

**What do we mean by unenforceable?
In the Consumer Credit Act section 127 there is a provision for making an agreement unenforceable if it does not contain certain pieces of information.
Subsections 1,2,3,4 state which pieces of information these are, and everything mentioned there must be included within the body of the agreement, if one is missing the agreement is unenforceable.

How does unenforceable differ from enforceable with a court order only?
When an agreement is unenforceable it means that the court or the judge cannot make a ruling on it. The court cannot make it enforceable.
When an agreement is enforceable only by ruling of the court it means that the agreement can be stopped by the debtor but the court has the power to re-instate it and allow the credit to continue to enforce.**

The Pescribed Terms are these

A Amount of credit
A term stating the amount of credit

B Repayments
A term stating how the debtor is to discharge his obligations under the agreement to make the repayments, which may be expressed by reference to a combination of any of the following-
(a) Number of repayments;
(b) Amount of repayments;
(c) Frequency and timing of repayments;
(d) Dates of repayments;
(e) The manner in which any of the above may be determined; or in any other way, and any power of the creditor to vary what is payable.

C Rate of interest
A term stating the rate of interest to be applied to the credit issued under the agreement
D Credit limit
This may be a term or the manner in which it will be determined or that there is no credit limit.

---

Which of these applies to you depends on the type of agreement you have?

For a Running Account (credit card) agreement

BC and D Apply





For a Restricted Use Debtor Creditor Supplier

• Where the dealer is the supplier and the creditor is the one providing the finance.
• The money can only be used for the purpose it is given.
• There is no interest on the purchase (the cash price is the same as the total price)
• And there is no advance payment

A is applicable

For a fixed Sum Credit Agreement
A conventional credit agreement with none of the above restrictions

A and B apply

For a Hire Agreement

B is Applicable

This paper only covers section 127(3) of the Act agreements can also be unenforceable by contravention of sections 1 and4 this will be the subject of the next paper.
Please note that these Prescribed terms where not changed in any way by the [URL="tel:2004/1482"]2004/1482[/URL] Ammendments although the form in which they appear on the agreement was. Subsection127(3) was repealed on the 6th of April 2007 so that unenforceability due to 127(3) will only apply to agreemens executed before that date.

TakingControl

Thanks for the above however I am still not clear what difference there is then under the section if the account was opened before 2007 or after?

I have seen on more than one topic statements like 'If the account was opened before 2005, the CCA won't be worth much'? What do people mean by this?

Sorry to be appearing slightly dim and asking silly questions

Edited to add: I have found this on another topic -
However, for agreements made before April 6th 2007, it still remains the case under the separate section 127(3) that the debtor must have signed an agreement containing the prescribed terms. It is up to the creditor to satisfy the court that such an agreement was signed.

So does this mean if a creditor can't supply a signed agreement containing the prescribed terms, even though if they can supply the original CCA, teh debt is still not enforcable?

confuciused

Hi, I am looking for the answer to this question too. What makes a pre 2007 enforceable?
Hope someone will be able to answer this one soon......!

fermi

TakingControl wrote: »

Does anyone have any 'plain' explanation around this please?

Basically.....

For accounts opened before 6th April 2007, the Consumer Credit Act says that a court cannot enforce an agreement unless an agreement containing the prescribed terms was signed by the debtor.

That particular clause in the Act was repealed so that it no longer applies to agreements made from 6th April 2007 onwards.

So....

Pre 6th April 2007 agreements - The court must be satisfied that an agreement containing the prescribed terms was signed.

Post 6th April 2007 agreements - The court can enforce the agreement at their discretion. For example, if an agreement was not signed but it is clear that the credit was taken out/used.

confuciused

Is a failure by the creditor to provide a signed agreement of the terms a defence then to an application for bankruptcy based on a credit card debt? Has this gone to court? If so, can you give me any case references? Thanks

foodog2004

Hi,
new here, I have 2 SECURED loans both pre 2007 and both at a stage of: they have both failed to supply the CCA within the alloted time limit.

If they are secured and are unenforcable? what happens if I sell my house??