Govan Law/Mohammed Sawar - excessive charges bill

[Amethyst]

http://www.govanlc.com/excessive%20c...ill%202009.pdf



explained - http://www.govanlc.com/excessive_charges.htm

We have suggested that no additional charge or fee in a consumer contract should exceed 2.5% of the value of the contractual default or failure or attempt to exceed an agreed overdraft. For example, a missed or paid overdrawn direct debit of £100 would not incur a charge in excess of £2.50 Returning to our example of four bounced direct debits incurring charges of £184, if the total value of these debits was worth £400 the maximum overall charge would reduced to £10. Whereas unpaid companies would typically impose £25 unpaid direct debit charges - resulting in an additional £100 of charges - the maximum that could levied overall would again be £10.

Isnt that whats being decided under UTCCR ?

[natweststaffmember]

Re: Govan Law/Mohammed Sawar - excessive charges bill

Yep.
------------------------------- merged -------------------------------
actually the answer is no, please see page 1

1 Prohibition of excessive fees or charges on consumers
(1) In any agreement regulated under the Consumer Credit Act 1974 or
any contract where one of the parties is a consumer it shall be unlawful
to impose a charge, fee or series of charges and fees for a consumer’s
default or failure to do something under that contract which is greater
than 2.5% of the actual value of the default or failure.
(2) In any contract for the provision of banking services regulated under
the Consumer Credit Act 1974 where a consumer exceeds or attempts
to exceed their agreed overdraft limit or funds available, it shall be
unlawful for the provider of that contract to impose a charge, fee or
series of charges or fees in excess of 2.5% of the actual value of the
sum the consumer exceeds or attempts to exceed their agreed overdraft
limit or funds available by.
(3) In this Act, “consumer” means any natural person who, in contracts
covered by this Act, is acting for purposes which are outside his or her
trade, business or profession

[LuggerBugs]

Re: Govan Law/Mohammed Sawar - excessive charges bill

So if you went 12 pence over your limit, you should only be charged 2.5% of 12 pence for instance?

Or does it mean that you will be charged 2.5% of the amount that took you over your limit?

Confused.

[Curlyben]

Re: Govan Law/Mohammed Sawar - excessive charges bill

So this ISN'T Law as yet, just a proposal and would it be retrospective.
If so then the banks are well and truly stufffffffeeedddddd, no need for UTCCR in that case

[Amethyst]

Re: Govan Law/Mohammed Sawar - excessive charges bill

UK Parliament - Bills Before Parliament



Its just a suggested bill at the moment. If they get it read it might open debate. Which can only be a good thing.

Have they said where the 2.5% comes from or is it arbitary ?

Its been on their site since 6th January but only just saw it over on PC.


Not sure I agree to be honest.

[EXC]

Re: Govan Law/Mohammed Sawar - excessive charges bill

This is essentially what the OFT are investigating.

I don't think any bills of this nature would get anywhere when the test case & OFT investigation is in full flow. It's already work in progress.

[Amethyst]

Re: Govan Law/Mohammed Sawar - excessive charges bill

Aye pretty much what I thought, aren't they (them on high lol) looking at the level of mortgage charges etc seperately too ?

But still, if it gets it talked about all the better.

[righty]

Re: Govan Law/Mohammed Sawar - excessive charges bill

Don't be so sure after all Scotlands a different country now & very fond of going it's own way. In addition I doubt Govan Law Centre would get involved if they didn't think it had legs & we are talking amendments to statute namely the CCA. Something I suggest with much more potency as it doesn't rely on the OFT making a decision which may the wrong decision for the consumer

[scoobydoo]

Excessive charges debate

http://www.govanlc.com/excessive%20c...ill%202009.pdf

sorry if duplicate post and not quite sure where to put it

debate 29th April

[Amethyst]

Re: Excessive charges debate

Its a ten minute rule bill.

Should be nice publicity tho. Yep am sure its posted somewhere else too.

mohammed sahwar - will have a search. yep >> Govan Law/Mohammed Sawar - excessive charges bill - Legal Beagles

[natweststaffmember]

Re: Excessive charges debate

only 2 bills in the last 9 years have ever become law so don't expect too much

[EXC]

Re: Govan Law/Mohammed Sawar - excessive charges bill

In addition I doubt Govan Law Centre would get involved if they didn't think it had legs

That brought a wry smile to my face.

[natweststaffmember]

Re: Govan Law/Mohammed Sawar - excessive charges bill

It's a 10 minute rule Bill. So far this century only 2 have ever reached Royal Assent(this is from 2000- date).

BBC NEWS | Politics | Ten Minute Rule Bill

Ten Minute Rule Bill


A ten minute rule bill is a type of private member's bill.

A to Z: Ten Minute Rule Bills

On Tuesdays and Wednesdays, after business in the Commons gets underway with departmental questions and any ministerial statements, time is given for a backbench MP to introduce a bill of their own.
They may give a speech lasting ten minutes in support of their proposal.
An MP who objects to the bill can then make a speech opposing the proposal for a further ten minutes, although the majority pass through unopposed.
MPs must give fifteen working days' notice to the Public Bill Office of their intention to present such a bill and only one ten minute rule bill may be introduced on any one day.
To secure this sought-after slot, MPs must be first in the queue at the Public Bill Office on the Tuesday or Wednesday morning three weeks prior to the date on which they wish to present their bill.
MPs desperate for this opportunity have been known to sleep overnight in the ante-chamber to the Public Bill Office in order to be first through the door when it opens the next morning.
If the bill is approved by the House at this first reading stage, it joins the queue of private members' bills waiting to receive a second reading.
The government will only rarely allow a ten minute rule bill to progress far enough to become law so MPs tend to use this procedure simply as a way of gaining publicity for a particular issue.

[Budgie]

Re: Govan Law/Mohammed Sawar - excessive charges bill

We already have common law and statute which covers the scenarios the referenced 10 minute bill is attempting to tackle.
IMO it also seems rather poorly phrased and I suspect it actually has no chance whatsoever of getting off the ground.

[EXC]

Re: Excessive charges debate

It won't get anywhere. It impinges on the test case and UTCCR investigation. I think it is also flawed as there is no minimum amount and as the OFT and almost everyone else agrees that lenders should be able to charge something for defaults, in the case or the default amount being say 70p how are they going to administer 2.5% of that?

Along with everything Govan Law has attempted, the bill is doomed. They punch way ahead of their weight.

These are the people who tried to muscle their way in to being a party to the test and failed. And who spent a ridiculous amount of other peoples' money on a case they described as ''unlosable'' which was subsequently stayed 'pending the outcome of the test'. case'.