Statement

Poohspal

If you have a fixed term loan but have never received a statement is that legal, can we claim interest etc? We've always made payments on time but only ever received one statement that we requested. 

bradders1983

Claim interest? What on earth do you mean?

macman

I think the OP means 'claim interest back'. AKA compo...

bradders1983

Well in that case the answer is clearly no 🤣

sourcrates

Creditors have a duty under the consumer credit act to send statements at least once a year.

Required statements under a fixed sum credit agreement

Section 6 of the Consumer Credit Act 2006 inserts a new section (s77A) whereby a statement must be provided if the agreement is a fixed sum credit agreement under section 77A.

The statement should explain the money borrowed, money paid, interest in all cases and the outstanding amount.

The creditor under a regulated agreement for fixed sum credit must within a period of one year (beginning with the day after the day on which the agreement is made), give the debtor a statement.

After giving that statement, the creditor must give the debtor further statements at intervals of not more than one year.

Failure to provide the statement

If the creditor fails to give the debtor an annual statement, then he is not entitled to enforce the agreement during the period of his non-compliance, and the debtor is not liable to pay any interest during this period.

The debtor is also not liable to pay any default sum that would have become payable during the period of non-compliance or that would have become payable after the end of that period in connection with a breach of the agreement occurring during that period.

However, nor is a creditor required to give the debtor an annual statement if there is no further sums payable under the agreement.

So yes you can reclaim all interest, and any default sums, that you paid during the period of non compliance by the creditor.

bradders1983

Good luck asking the bank for the intetest back 🤣

sourcrates

bradders1983 said:

Good luck asking the bank for the intetest back 🤣

Pretty straight forward as its enshrined in the consumer credit act.

A lot of lenders are unaware of sec 77a, yet these are the terms they sign up to.

Yes the creditor will probebley take the same line you did, utter rubbish they will say, so the OP escalates to the FOS, and as long as more than 12 months actually did pass between statements, he will will his case.

He will get back all interest paid for that period, plus any default sums, plus statutory interest @ 8% per annum.

Poohspal

Thanks for your help, I did mean to say that I wanted to claim the interest back. I thought it was a scam that I'd heard about and it had no possible grounds, but as we have only ever had one statement, it might something to fight for! 

bradders1983

Or, you know you owe the money and you agreed to pay it back at the rate and amount agreed for X months, so why are you now trying to weasel out of paying it on a technicality?

sourcrates

bradders1983 said:

Or, you know you owe the money and you agreed to pay it back at the rate and amount agreed for X months, so why are you now trying to weasel out of paying it on a technicality?

With respect your comments are well out of order, the consumer credit act is there for everyone’s protection, you cannot just decide which parts of it you comply with, and which you don’t.
This is not a technical issue, it’s a statutory rights issue.
The OP is entitled to his interest back.

bradders1983

Well lets agree to disagree.