Asking For a Valid CCA from Creditors

Hello guys,

I am trying to sort out my debts with a number of Creditors.

What is the advantage of asking for CCA(consumer credit agreement) i have with them. I think i read there are few loopholes in this.

Cheers

Comments

  • rog2
    rog2 Posts: 11,650
    First Post Combo Breaker
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    The right to request a true copy of the original executed consumer credit areement is not about looking for 'loopholes'. It is the right of any debtor to have a valid consumer credit agreement before entering into any consumer 'debt' and all consumer debt, up to £25,000, is regulated by the Consumer Credit Act.
    A creditor, therefore, must, in order to comply with the Law, issue a consumer credit agreement which conforms to the requirements of the Act, before giving credit. Often, and usually in the rush to start earning interest, a 'creditor' will not always comply with the requirements of the Act, and sometimes what looks to be a 'credit agreement' is purely a document written to give the creditor control over the debtor, without reconising the rights that the Act gives to that debtor. This is particularily true where interest rates are not clearly defined and some creditors have been known to use this as a 'licence' to charge otherwise extortionate rates of interest.
    Other examples, where the Act has often been 'ignored' include some credit card companies and 'Catalogue Companies', but 'abuse' of the Consumer Credit Act is by no means limited to these examples.
    Basically, the Consumer Credit Act was introduced to standardise 'credit areements' for the benefit of both the consumer and the creditor. The Act lays down a set of conditions to which all credit agreements must adhere in order to be 'legally enforceable' and any agreement, for credit under £25k, which does not contain the prescribed terms and conditions is 'unenforceable through the Courts'.
    Please, also, be aware that the Act covers only Consumer Credit Agreements - Mobile Phone bills are 'Consumer Service Areements' and are not covered by the Act.
    This does not, nor should it, imply that requesting a cca can be a 'loophole' in order to avoid paying genuine 'debts'. It is, however, the right of any debtor to request a true copy of the executed cca and this course of action is particularily encouraged when there is a question over the validity of a debt, or the authority of a debt collector in relation to that debt.
    Once a debtor has requested a cca, and paid the statutory £1 fee, then the creditor, or debt collector must provide a copy of the cca within 12 working days of receipt of the request, otherwise he can, no longer enforce the agreement without the permission of the Courts. Nor can he pass your details to another debt collector with the intent of chasing that 'debt'.
    If the creditor/dca is able to provide a true copy of the executed cca, within the legally prescribed period, and, providing that 'cca' complies with the conditions laid down in the Act, then that agreement remains enforceable although this does not, necessarily, mean that the debtor can not make arrangements to pay at a rate the debtor can afford. In such cases, help and advice is readily available from the Debt Counselling Charities, such as CCCS - 0800 138 1111, National Debtline - 0808 808 4000, or a specialist debt advisor at your local CAB.
    So, in summary, requesting a copy of your credit agreement is a very useful right - it will tell you if the agreement is correct, under the terms of the Consumer Credit Act, or, indeed,if the 'agreement fails to comply and is, therefore, unenforceable. It will assist you in deciding how to tackle your 'debts', but, at all stages you should take advice from, and be guided by, the Debt Counsellin Charities.
    For an overview of the Consumer Credit Act, and 'template letters' have a look at the following National Debtline link:

    http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=getting_a_copy_of_your_credit_agreement_and_account_details
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
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