Overdrafts does the CCA apply?

john10001

Does the Consumer Credit Act apply to Overdrafts on bank accounts?

And what about after the closure of such an account with a balance still outstanding?

If it doesn't apply, besides any contract, what relevant piece of legislation and/or regulation and/or code of practice does apply to overdrafts and the banks dealings with you?

happy_bunny_2

It's not covered under CCA.

You can complain about overdrafts just like any other problem with a bank.

If you can give some details of your issue, maybe someone can advise.

fermi

john10001 wrote: »

Does the Consumer Credit Act apply to Overdrafts on bank accounts?

For the most part yes, they are covered.

The part that isn't is the requirement for them to have executed credit agreements in a form that you can request under part 78 etc.

So it depends what aspect of the CCA1974/2006 you are concerned with here?

john10001

fermi wrote: »

For the most part yes, they are covered.

The part that isn't is the requirement for them to have executed credit agreements in a form that you can request under part 78 etc.

So it depends what aspect of the CCA1974/2006 you are concerned with here?

Hi. It is regarding a default placed on credit files when A) no default ever actually occurred and no default notice was ever issued.

I had requested removal and referenced S78 and S77 of the CCA. If this doesn't apply I will have to re-draft a new complaint and start over. No response from them as yet after 28 days. If the CCA does not apply I imagine if they do bother to reply it will be to reject the request then? So can you tell me what relevant legislation etc does apply to overdrafts if the CCA and those particular section do not? This should help me with re-drafting a new complaint.

chanz4

did you make regular payments in to the account, also did they issue a payment demand for the full amount outstanding?

john10001

chanz4 wrote: »

did you make regular payments in to the account, also did they issue a payment demand for the full amount outstanding?

yes and yes.

fermi

If I remember correctly, they are also not required to issue a default notice under s87 in order to terminate and demand repayment under an overdraft? Will have to double check that.

Regardless, you are confusing a "default notice under s87 CCA1974" with a default that is recorded on your credit file. They are not the same thing, but confusingly do share that common term "default" and often occur in a similar time frame on accounts.

Regards a default on your credit file, if you did not repay the OD under the account terms, on demand or not, then a default is likely to be valid. Only caveat on that may be if you were not sufficiently warned that one might be registered, but most account terms and conditions state that non payment etc may be reported to the CRAs.

Really need to know more details of what happened, what you did, what the bank did and sent etc to have any clue whether a default might be fair.

john10001

Fermi,

Hi. Thanks for the reply. I have always been repaying the overdraft each month but could not afford to make a lump sum payment of £500 or over £1000 which is what they were demanding in two of the few letters they actually did send me over the last few years. They claimed there was a minimum required throughput on the account which is incorrect as it is a student account that has never had a minimum required monthly payment into the account and the account history suggest and implies otherwise. I had no contact whatsoever from them for several years but they only contacted me recently when they found themselves in trouble as a bank and have been tightening the screws.

I have never actually defaults and have always paid money into the account regularly to reduce the overdraft until a few months ago when they closed the account and the standing order I had set up started bouncing back and my payments rejected. They then started issuing defaults every month and passing the outstanding amount around different internal DCA departments and now an external one.

They haven't responded to any of the communications I have made in writing and are unsympathetic that I am in financial difficulties.

I feel they way they have acted has not been fair or reasonable but quite stubborn and something minded. Have sent me on a wild goose chase.

The issue is that I never default and was making regular payments to reduce the overdraft until they prevented me from doing so. In addition I never received a default notice or warning prior to this and this particular bank simply refused to respond but you say that they don't have to issue a default notice for an overdraft?

I do not wish to deal with any third parties anymore especially not an external DCA for this to just be passed somewhere else again in another couple of weeks.

Can you report a bank to Trading Standards? Or the FSA? Or is it the FSC now?

I was going to do a Subject Access Request for information on the defaults and their failure to provide notice, respond to my previous complaint or come to an agreement. I do not feel they have acted lawfully, I believe they have breached contract in some way or another and they have definitely not acted honourably or transparently in this matter.

meer53

An overdraft is an on demand facility which the bank can remove at any time. They will have written to you to let you know that this was the action they were going to take.

john10001

That seems a very ruthless and unfair IMHO especially when I have always been repaying.

Do you know if they are allowed to have multiple DCA's with different names some under their umbrella some external all making demands for the same thing? Is this not against the OFT guidelines?

meer53

You will need to deal with whoever is now chasing the debt as you still owe the money. You seem to be looking for a way out of repaying them. The t & c's of your account will state that they can demand repayment of the overdraft at any time. When an account is closed with an outstanding balance, if no agreement is made to repay the balance and no contact is made, the amount will be passed to a DCA. If the balance has been passed through internal collections departments and is now with an external one, it indicates that you haven't spoken to them about coming to some arrangement.

All you can do is to lodge a formal complaint but from what you've said, i wouldn't hold out much hope of it being upheld.