Annual Statements - A legal obligation?

Fatboss

Hi,
We have a secured loan with Paragon Banking and in all the time it's been active (well over 10 years - I know!) we've had one statement - and I had to harass them to get that!

So my question is are annual statements a legal obligation? I can't see how any financial organisation can operate in this way. Surely an annual statement is a minimum requirement.
Is there any possibility that they are acting unlawfully - and I can claim compensation, maybe get the loan paid off (wishful thinking I know!)

We've just come out of a long drawn out IVA but it's behind us now and my credit rating is back where it should be. I'm looking at options to reduce any other debt I have left and this is by far the biggest one. A statement would help me understand where I'm at with the loan. How long is left, what's the balance, can I pay it off quicker?

Any info with regards to annual statements would be very much appreciated.

Thanks in advance friends,

Dave. :beer:

[Deleted User]

You don't get the loan written off, obviously.

But there have been recent cases where the failure to provide annual statements has meant that interest could not be charged for that period.

Fatboss

Interesting..........

Who would be the best person to contact to look into this for me? A solicitior or is there another company that might specialise in this area?

Thanks for the info. Much appreciated.

Dave.

[Deleted User]

I wouldn't go paying a solicitor. And never any type of claim company.

Start here.

https://www.google.co.uk/url?sa=t&source=web&rct=j&url=http://www.legislation.gov.uk/ukpga/2006/14/pdfs/ukpgaen_20060014_en.pdf&ved=0ahUKEwil7caBwMrXAhUkCMAKHVSsD0IQFgggMAE&usg=AOvVaw2FEuTL9Z-EAaByhqY0DaJ5

Section 6, point 23 onwards.

Fatboss

That looks encouraging but I wouldn't feel confident pursuing that myself. I'm one customer against the full might of their legal department.
Is there anywhere that shows previous cases that would back up this enquiry?
This almost seems to good to be true. I can't believe this could be an oversight on their part - I'm just not that lucky.

Thanks again,

Dave.

sourcrates

Fatboss wrote: »

That looks encouraging but I wouldn't feel confident pursuing that myself. I'm one customer against the full might of their legal department.
Is there anywhere that shows previous cases that would back up this enquiry?
This almost seems to good to be true. I can't believe this could be an oversight on their part - I'm just not that lucky.

Thanks again,

Dave.

Basically the consumer credit act requires creditors to produce an annual statement, at least once a year, if they fail to do so, they cannot charge you interest or any default sums, on any balance, you may have outstanding, for as long as the breach continues, if they do so, you can ask for a refund.

The usual route is to send a written complaint to the creditor, outlining your concerns, and telling them what you believe they have done wrong, remind them what the consumer credit act says, and ask them to put things right.

If they refuse, or don't comply to your satisfaction, or 8 weeks or more have passed without resolution, you take your case to the financial ombudsman service, who will then pursue the case for you, they have the power to make the creditor comply with legislation, and provide redress if necessary.

Every complaint receives the same attention no matter who you are.

So that is what you should do.

meer53

Do they have your correct address and email details ? Could they have been sending statements which you simply have not received ?

Fatboss

Well that sounds a bit less daunting.

Thanks for your help. I feel a bit more confident about tackling the issue now.

Dave.

Fatboss

I believe the details they have are correct. As I said in my OP, I have received one statement that they emailed me, but that was over 5 years ago.

Dave

sourcrates

Fatboss wrote: »

I believe the details they have are correct. As I said in my OP, I have received one statement that they emailed me, but that was over 5 years ago.

Dave

Ah, just read your OP I notice it says "secured loan", is the interest fixed or variable ?

Because the above only applies to fixed sum credit agreements.

If your agreement states it is covered by the consumer credit act, then it will apply.

~Brock~

Are you sure the loan you have is actually regulated by the Consumer Credit Act 1974? The reason i ask is depending on the original size of the loan and that it was taken out over 10 years ago, if is was for over £25,000 it may well not be.

Might be worth checking before you wade in with what might be an irrelevant argument.