Unenforceable CCA

catflap11

Hi All

I have two accounts with IDEM (previously MBNA all pre 2007) totalling £5,000. They were defaulted by MBNA before they were sold on and the defaults dropped off last May 2017.

I have been paying a reduced amount of £50 per month but I have recently submitted a CCA request and IDEM have responded with (paraphrased):

"Unfortunately we are unable to supply a copy of the Credit Agreement at present and acknowledge that until we do so the agreement cannot be enforced. We have contacted the original lender for a copy and if available it will be sent to you...

The balance of the account is still outstanding and we will continue to pursue this debt which will include registering any arrears and defaults with credit reference agencies. We can confirm that the balance remains due and we will continue to contact you to discuss repayment proposals.

You are free to take whatever action you consider appropriate but we will not be releasing you from any obligation under the agreement"

I have not yet cancelled my standing order but I had a couple of questions about the next steps:

1) As they cannot register another default if I stop paying, what else can they do?
2) is it worth offering a full and final settlement of say £100 to get them off my back forever?
3) If I stop paying, will this affect my credit record?

Many thanks in advance!

Oldwood

You've called their bluff.

As you've sent a CCA request, they have 12 working days from the date they received it to provide you with the information. If they cannot then they cannot enforce the debt. What date did you sent it? What date is on their reply?

Sadly it seems that you've blown any chance of using the 'statute barred' route. When did you start making payments to IDEM?

simon_the_poet

They can do very little unless they turn up something which will pass as a compliant copy of your agreement.
What they say is correct.

I would say offering a full and final is always a good idea, that is if you owe the debt and in this case it seems you do.

As far as your credit report is concerned there will be no immediate effect.

It may be that each payment you make is being recorded and as a result the six year period until it drops off will continue to re-start for as long as you keep paying instalments.

This is a lamentable consequence of trying to do the right thing and pay the debt in my view, but it is nevertheless the case.

They can continue to pester you, but not harass of course.

catflap11

Thanks all for the responses, I have been paying them for at least 6 years. The CCA was sent 3 weeks ago and the letter from them stating that it was unenforceable was received yesterday. I appreciate that MBNA may find a record of my agreement in the future but I think trying to head them off before they do with a full and final offer might be worth a go.

Should I cancel my standing order at this stage? i guess if i stop paying it starts the 6 year timebar clock.

fatbelly

Unenforceable is unenforceable, and they have confirmed as much.

They have also said 'You are free to take whatever action you consider appropriate'

so you can offer a F&F if you wish, or just cancel your standing order and ignore them.

The entry drops off your file 6 years after it was defaulted, which has already happened. Nothing you or they do now will cause it to reappear unless they try a court claim, to which you now have a defence.

Suseka97

Ultimately the choice is yours - but seeing as they have stated that the debt is 'currently' unenforceable I would stop paying the SO and put that money aside for now. Leave it for as long as you wish before offering an F&F, if at all. As you say, the 6 year 'statute bar' clock starts ticking from the moment you stop acknowledging (paying/communicating with them about) the debt.

The good news is that the default has already dropped from your credit file - so there's nothing more they can do to affect that. So just file away any letters until they are able to comply and thus prove enforceability - or perhaps eventually they will offer you a significant discount in the form of an F&F which you can then choose to accept or not.

catflap11

Fantastic, thanks all for the guidance

simon_the_poet

Just a point regarding your credit file, the entry will still show as long as you continue payments and for some years after. (dependant on the creditor.

Although it may show as an arrangement to pay.(AP)

https://forums.moneysavingexpert.com/discussion/1626051 Post 10

Also in regard of the unenforceability, this only applies for as long as no agreement is found or for as long as the creditor does not have the information to compile an accurate copy.

If one is constructed and supplied any arrears in payment for the interim will be due, if the agreement is still active.

catflap11

simon_the_poet wrote: »

Just a point regarding your credit file, the entry will still show as long as you continue payments and for some years after. (dependant on the creditor.

Although it may show as an arrangement to pay.(AP)

https://forums.moneysavingexpert.com/discussion/1626051 Post 10

Also in regard of the unenforceability, this only applies for as long as no agreement is found or for as long as the creditor does not have the information to compile an accurate copy.

If one is constructed and supplied any arrears in payment for the interim will be due, if the agreement is still active.

Thanks, however it does not appear on any of the three referencing agencies (it vanished last May) could it reappear it i stop paying? It didn't appear as an AP at any point?

simon_the_poet

catflap11 wrote: »

Thanks, however it does not appear on any of the three referencing agencies (it vanished last May) could it reappear it i stop paying? It didn't appear as an AP at any point?

I should think if its gone its gone.

I take it the account is not referred to at all on your reports?

I think I wold be inclined to not do anything and leave the next move to them(if they make one at all).

fatbelly

catflap11 wrote: »

Thanks, however it does not appear on any of the three referencing agencies (it vanished last May) could it reappear it i stop paying? It didn't appear as an AP at any point?

No .