Asking for a Credit Agreement

fatbelly

The FCA guidance is here

https://www.handbook.fca.org.uk/handbook/CONC/13/?view=chapter

Rjhsteel

How do I know if the reconstructed credit agreement is correct?

And if they can't? I will post the letter I received once I get home.

It doesn't this defeat object of asking for a credit agreement in the first place?

Willing2Learn

You can get someone to take a look at the agreement on the All-About-Debt forum. They will then advise on whether they think the reconstructed agreement is enforceable or not. They have a document-checking sticky thread over there. It is in the "Unenforceable Credit Agreements" sub-forum.

(All-About-Debt is a consumer debt and legal forum)

sourcrates

Rjhsteel wrote: »

It doesn't this defeat object of asking for a credit agreement in the first place?

The original purpose of sec 77/79 was not to provide a "get out of jail free card", after all it should be pretty easy to reconstruct a credit agreement, right ?


Well, yes and no, there are still quite a large number of creditors that cannot comply, because they hold so little information on the debtor to do so, this is especially relevant for old debts that have long since been written off by the original creditor, but then get bought up in a job lot by a DCA hoping for a payday.


Quite often the OC no longer has any details of the debtor, and the new owner only scant ones, so cant comply with sec 77, sometimes it can be helpful, other times not so much, but whatever they send you, get checked out, as errors are common place, as is legibility, you must be able to read it, if you can`t, its not compliant.

Rjhsteel

Thanks for the help people...

Say they can’t come up with the credit agreement, what does this mean?

I can’t be taken to court but the debt is technically outstanding still?

If I didn’t pay could they put a new default notice on my credit report?

Does this put me in a better position when putting in for a full and final offer?

Willing2Learn

The following is my understanding of the situation. (I am not, however, trained in debt management).

If a creditor is unable to provide an agreement then the debt would become unenforceable. The debt does still exist though. But they could not default you again (once is enough lol).

If a debt is unenforceable then that would give you a choice. You could choose not to pay, until they can produce an agreement. Or you could use the 'unenforceable card' as leverage, to negotiate a reduced settlement figure.

Rjhsteel

How would this effect my credit report if I choose not to pay it?
Thanks again.

fatbelly

If you don't make payments to a credit card or similar, initially you get late payment markers. After 3-6 of those the company should put a default on your credit file entry and it stays there for 6 years.

If they get a ccj against you (and they have 6 years to do that) that appears as a separate entry again for 6 years

Rjhsteel

fatbelly wrote: »

If you don't make payments to a credit card or similar, initially you get late payment markers. After 3-6 of those the company should put a default on your credit file entry and it stays there for 6 years.

If they get a ccj against you (and they have 6 years to do that) that appears as a separate entry again for 6 years

It already has a default on it. The debt is now with Arrow, a debt purchaser. Someone else said it can't be marked as defaulted again.

Rjhsteel

And they have no proof of a credit agreement.