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CCA for an Unauthorised Overdraft - Help
SaulGoodman
Posts: 8 Forumite
Hi all.
I’m currently at the final stages of a DMP that’s been ongoing for years, and having read the advice on here, I decided to CCA most of my creditors to see what was what. I have an account which Lowell purchased from Halifax early last year, and having CCA’d them, they’ve come back with the usual “this account isn’t covered under CCA 77-79”. Their wording doesn’t use the word overdraft at any point, simply referring to it as the “account”. I know this relates to an overdraft as the reference is the same as an old bank account I had, however I’ve seen so many mixed opinions on whether overdrafts (authorised or unauthorised) fall into the 77-79 criteria.
I replied back to Lowell several times to advise they hadn’t handled my request and that the debt was unenforceable, however they disagree, but have still placed the account on hold for 30 days. My questions really is, what’s the rules here? They’ve registered a default on my credit file, and have purchased the debt, not been assigned, however can’t provide any documentation other than a collection of old bank statements from Halifax. The debt is currently just over £3,000 and I was toying with the idea of offering them a token payment of say £100 to fully close the account, but not sure if that’s the best idea or just to sit on it and ignore.
Any advice greatly appreciated!
I’m currently at the final stages of a DMP that’s been ongoing for years, and having read the advice on here, I decided to CCA most of my creditors to see what was what. I have an account which Lowell purchased from Halifax early last year, and having CCA’d them, they’ve come back with the usual “this account isn’t covered under CCA 77-79”. Their wording doesn’t use the word overdraft at any point, simply referring to it as the “account”. I know this relates to an overdraft as the reference is the same as an old bank account I had, however I’ve seen so many mixed opinions on whether overdrafts (authorised or unauthorised) fall into the 77-79 criteria.
I replied back to Lowell several times to advise they hadn’t handled my request and that the debt was unenforceable, however they disagree, but have still placed the account on hold for 30 days. My questions really is, what’s the rules here? They’ve registered a default on my credit file, and have purchased the debt, not been assigned, however can’t provide any documentation other than a collection of old bank statements from Halifax. The debt is currently just over £3,000 and I was toying with the idea of offering them a token payment of say £100 to fully close the account, but not sure if that’s the best idea or just to sit on it and ignore.
Any advice greatly appreciated!
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Comments
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Hi,
Overdrafts are NOT covered by sec 77/79 CCA.
Different legislation applies, sec 10 CCA if memory serves me.
Lowell are correct.
Edit Yep, sec 10 applies :
https://www.legislation.gov.uk/ukpga/1974/39/section/10I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Overdrafts are not covered by the CCA, but if the DCA cannot supply the required documentation, how do they know it's an overdraft and not a loan?
You could write to the DCA saying that you want the CCA documentation for the 'loan' (after all, an overdraft is a loan) and see what they say."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
Thanks for the replies. This is where I’m getting really confused as in other threads there are those who insist overdrafts ARE covered, depending on a few circumstances. One such argument is when going into an unauthorised overdraft, and how this becomes regulated credit just like a loan. There’s also discussion around the Coutts vs Sebastyan Determination and what steps needed to have happened for 74 (1) to apply.
Any other thoughts or comments relating to this?0 -
SaulGoodman wrote: »Thanks for the replies. This is where I’m getting really confused as in other threads there are those who insist overdrafts ARE covered, depending on a few circumstances. One such argument is when going into an unauthorised overdraft, and how this becomes regulated credit just like a loan. There’s also discussion around the Coutts vs Sebastyan Determination and what steps needed to have happened for 74 (1) to apply.
Any other thoughts or comments relating to this?
Our resident legal expert should be along soon.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
SaulGoodman wrote: »I’m getting really confused as in other threads there are those who insist overdrafts ARE covered, depending on a few circumstances.
Authorised overdrafts which have been renewed annually since 2012 are regulated by s78 CCA.
Di0 -
Can you clarify this for me? My original account with the bank defaulted in 2013, Lowell bought the debt in 2017.0
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Just bumping this back up.0
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Well I had some great news today! After sending a number of unenforceable letters, Lowell have accepted my token settlement offer and agreed to write off the rest of the debt! Another successful win against a greedy DCA.0
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SaulGoodman wrote: »I had some great news today! After sending a number of unenforceable letters, Lowell have accepted my token settlement offer and agreed to write off the rest of the debt!
What great news for you !
Your perseverance worked.
I'm hoping this means your £3k debt was settled for £100
SaulGoodman wrote: »The debt is currently just over £3,000 and I was toying with the idea of offering them a token payment of say £100 to fully close the account
Di0 -
What great news for you !
Your perseverance worked.
I'm hoping this means your £3k debt was settle for £100
Di
And doubtless the DCA have still made a healthy profit settling for £100!"There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0
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