No CCA within 12 days - Took out a consolidation loan, but no consolidation

[d1ngle]

Hi All,

Hope you can help, I've been searching and reading for days, but couldn't find anything related exactly.

In late 2010 I took out a consolidation loan with my bank to cover an overdraft (had for 10yrs+) and Credit Card (10yrs+). All credit was with the same bank. I took this out on the phone and the rep on the phone said the underwriter would only offer the loan if both my credit card and overdraft were removed.I agreed and they said they would remove both the CC and Overdraft facility. They gave me the money but didn't take away the OD or CC.

I know its stupid, but after a few months when issues and extra expenses came about I used these facilities again. Then when the increased repayments were due it spiraled and I was using the Overdraft to pay the initial loan. I'm now in double the debt I was originally.

I have looked and cannot find my loan agreement and do not remember signing for the loan either (but must have??).m I'm not sure, but think they just put the money in my account after the call.

I have asked for a copy with a CCA request on all accounts, but have not had a response in two weeks (just a "we'll get it to you when we can letter").

I'm just wondering if the fact they were meant to cancel my facilities and the underwriter only approved the loan based on my bank removing the facilities makes the debt unenforceable?

How would I even go about proving the above if its not recorded on the agreements?

I'm wondering what is the best way to proceed, I have been told to SAR them, but I have been recommended to post on this site for further advice.

Really appreciate some help....

Thank you
D

[FlamingParrot]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Hi All,

Hope you can help, I've been searching and reading for days, but couldn't find anything related exactly.

In late 2010 I took out a consolidation loan with my bank to cover an overdraft (had for 10yrs+) and Credit Card (10yrs+). All credit was with the same bank. I took this out on the phone and the rep on the phone said the underwriter would only offer the loan if both my credit card and overdraft were removed.I agreed and they said they would remove both the CC and Overdraft facility. They gave me the money but didn't take away the OD or CC.

I know its stupid, but after a few months when issues and extra expenses came about I used these facilities again. Then when the increased repayments were due it spiraled and I was using the Overdraft to pay the initial loan. I'm now in double the debt I was originally.

I have looked and cannot find my loan agreement and do not remember signing for the loan either (but must have??).m I'm not sure, but think they just put the money in my account after the call.

I have asked for a copy with a CCA request on all accounts, but have not had a response in two weeks (just a "we'll get it to you when we can letter").

I'm just wondering if the fact they were meant to cancel my facilities and the underwriter only approved the loan based on my bank removing the facilities makes the debt unenforceable?

How would I even go about proving the above if its not recorded on the agreements?

I'm wondering what is the best way to proceed, I have been told to SAR them, but I have been recommended to post on this site for further advice.

Really appreciate some help....

Thank you
D

The loan from 2010 won't be unenforceable because the bit of legislation (s.127 of the Consumer Credit Act) that prevented a court from enforcing an account without a properly executed agreement, was repealed in April 2007.

If the credit card was taken 10 years ago that may or may not be unenforceable depending on whether they can produce a compliant agreement for it. This account will be unenforceable as long as they are in default of your CCA request, provided you sent a proper s.78 request in writing with £1 fee. Once they respond, you should post their response on here.

The overdrafts are not covered by the CCA in the same way as cards and loans, see this for reference ---> http://www.legalbeagles.info/forums/...328#post312328

A SAR should provide you with statements and notes applied to your account, this could be useful to assess charges, etc. but not for enforceability purposes. It would cost you £10 and they would have 40 days to respond, however, you couldn't argue the account is not enforceable because they haven't responded.

[gravytrain]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Am I right in assuming that you pay both the loan and the Credit card by direct debit from the same bank, and that you have an overdraft on this same bank account which is drawing interest ?

[d1ngle]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Am I right in assuming that you pay both the loan and the Credit card by direct debit from the same bank, and that you have an overdraft on this same bank account which is drawing interest ?

Yes that is correct. I haven't been out of overdraft for months/year, even when paid from work.

When I took the loan, the Bank said the underwriter would only agree to the loan if the bank took away my credit card and overdraft facility. I agreed.

[gravytrain]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

The SAR is an excellent idea, there may be case for irresponsible lending here also.

[d1ngle]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

The loan from 2010 won't be unenforceable because the bit of legislation (s.127 of the Consumer Credit Act) that prevented a court from enforcing an account without a properly executed agreement, was repealed in April 2007.

If the credit card was taken 10 years ago that may or may not be unenforceable depending on whether they can produce a compliant agreement for it. This account will be unenforceable as long as they are in default of your CCA request, provided you sent a proper s.78 request in writing with £1 fee. Once they respond, you should post their response on here.

The overdrafts are not covered by the CCA in the same way as cards and loans, see this for reference ---> http://www.legalbeagles.info/forums/...328#post312328

A SAR should provide you with statements and notes applied to your account, this could be useful to assess charges, etc. but not for enforceability purposes. It would cost you £10 and they would have 40 days to respond, however, you couldn't argue the account is not enforceable because they haven't responded.

Thank you, appreciate the info.

[d1ngle]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

The SAR is an excellent idea, there may be case for irresponsible lending here also.

Thank you.
Is irresponsible lending ever upheld? And how to prove?

I was looking into it and although my case is different to anything I read it didn't seem many people had positive results.

[gravytrain]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Can I ask when you went overdrawn on your account after the loan, and if this was an agreed overdraft or if it is drawing unauthorized O/D fees ?

[d1ngle]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Probably slightly OD within 2 months and then consistently around 4 months, but would always be out of it when paid. Then for the past year I've been in it for almost the whole month. The OD was agreed at 5k (they kept increasing it over the years), it was meant to be removed when I took the loan but wasn't.

It has not drawn unauthorised fees.... yet. Probably will by the 5th Feb, but I have a new account and I'm cancelling all DD from the account in question. It is best not to get unauthorised fees right? (I read that if you go Unauthorised it may comply with CCA?)

I am up to date with all credit lines due to using each other to pay. I am defaulting on my first payment on the loan tomorrow as I can't afford it.

[jon1965]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Hi Dingle and welcome

I am glad you have found the site.
Now I know you have sent CCA requests off for the credit card and the loan and haven't heard back . Obviously as i said to you before the credit card will remain unenforceable until they comply and if they do someone on here will be able to tell you if the agreement is valid.
Unfortunately as FP says when they send the agreement for the loan it will be enforceable but , and I stand to be corrected, the OFT guidance on S77-79 states that until they do provide the agreement it is not enforceable.


However having said all that , one step at a time, one letter at a time and take it slowly. It is a great feeling when you feel you are taking some control back

Good luck
jon

[gravytrain]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

OK.

What I would do.

I would contact the lenders and tell them I am having difficult paying.
I would ask them for an up-to date statement of account.
I would either prepare an income and expenditure statement and offer pro rata payments dependent on how much you owe or I would contact one of the debt charities to do it for me.
Only offer a total a mount you can easily afford, and ensure your priority bills are paid first.
When you have all this in place we can worry about challenging agreements.

There possibly are others on here that would advise otherwise, but you must be seen to act correctly in my opinion, before your defaults are noticed.

[d1ngle]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Thank you. I appreciate the advice.

I'm sending a SAR and will send a letter of changed circumstances.

[gravytrain]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

You are not alone in theses circumstances, many of us have been in the same boat, personally i think the best long term solution is via an organised DMP, if you find that you have agreements that can be challenged etc. you can pursue at your own rate when the pressure is off.

If the worse happens(extremely unlikely) and they eventually decide to enforce, the court will see you have done your best, this is the best way of avoiding forthwith judgments/ charging orders etc, in my opinion.

[d1ngle]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

You are not alone in theses circumstances, many of us have been in the same boat, personally i think the best long term solution is via an organised DMP, if you find that you have agreements that can be challenged etc. you can pursue at your own rate when the pressure is off.

If the worse happens(extremely unlikely) and they eventually decide to enforce, the court will see you have done your best, this is the best way of avoiding forthwith judgments/ charging orders etc, in my opinion.

Thank you. Yeah tough times.

The issue is that this is just the debts relating to one bank. I have other credit cards post 2007. From the debt charities I spoke to I have too much debt vs my new circumstances for a DMP and I'm an IVA or Bankruptcy case.

Luckily its all unsecured debt and I have no assets.

I want to make sure I research as much as possible before making any decisions like IVA or bankruptcy so really appreciate the input.

[gravytrain]

Re: No CCA within 12 days - Took out a consolidation loan, but no consolidation

Thank you. Yeah tough times.

The issue is that this is just the debts relating to one bank. I have other credit cards post 2007. From the debt charities I spoke to I have too much debt vs my new circumstances for a DMP and I'm an IVA or Bankruptcy case.

Luckily its all unsecured debt and I have no assets.

I want to make sure I research as much as possible before making any decisions like IVA or bankruptcy so really appreciate the input.

Perhaps one of the smaller debt charities may be able to help ? if all you can offer is a token amount then offer that, in the interim we can examine the unenforcebilty/ unfairness aspects.