Barclaycard(was Egg) say they don't have to send statements

franchesca

Hi, I am hoping someone can shed some light on the legalities of this please. We are on a DMP with Stepchange and receive yearly statements from all our creditors except Barclaycard. We had two cards with EGG who were taken over by Barclaycard. We hadn't had a statement for years, so, worried they may be charging interest as they have for others I wrote and asked for a statement pointing out that it was a legal requirement to send me a yearly statement of account. They replied, giving me the balances (which agreed with those of my DMP) and said that 'as the accounts were cancelled we are not obliged to to send monthly or annual statements'.
They also said that our arrangements with stepchange will end on 1st March 2016 and they will contact Stepchange prior to this for an update on our situation-I assume this means they will look at adding interest.
I thought it was a legal requirement that creditors sent a yearly statement but don't know where to look to find out. Does anyone know if what they are saying is true? Do they only send a statement if they are charging interest?
Any help much appreciated.
Thank you

Tixy

The Consumer Credit Act 2006 states that statements should be sent at intervals of not more than 1 year. Failure to provide statements means that the creditor cannot charge interest or enforce the debt for the period of non compliance.

I suppose that could be interpreted as if they don't intend to charge interest or take court action then they could not send statements (though it would certainly be good practice to send them).

In terms of the agreement to March 2016, rather than them intending to charge interest it may be that they will review at that point and consider selling the debt on.

B0B

most places only put you on an agreement for a year, and when you do your yearly review with stepchange. Stepchange send new details ut and get it extended year on year.

franchesca

Thank you for the replies. In a way that is good news then as it means they're not charging interest which is a relief; at least for now.
I appreciate your taking the trouble to put my mind at rest.

happy_bunny_2

If you want a statement, send a CCA request. They are obliged to send one along with the copy of the agreement.