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Old 27-07-2007, 12:31 PM
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Perseus Perseus is offline
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Default FAQs about your Consumer Credit Agreement

SO, you're here to discuss, understand and clarify what your agreement is, is it enforceable, improperly executed etc...

What does all this mean? Here are just a few Frequently asked questions about the Consumer Credit Act, and how it affects you.
__________________________________________________ ______________

What is a CCA?

CCA is a Consumer Credit Agreement. It is a legal contract to supply credit in a number of ways, to a consumer, and is mostly provided under the controlling regulations of the Consumer Credit Act 1974, which were amended from 2006 by changes in April 2007.


How does the Consumer Credit Act affect me?

The 'Act' as we will call it from here on, is a set of rules and regulations compiled by the Office of Fair Trading, endorsed by previous court cases, and agreed by Government to safegaurd the Consumer and the Creditor. All credit agreements made under the 1974 Act must comply with these rules, be laid out in a certain format, and contain prescribed (compulsory) terms in order that the agreement is binding and acceptable.


How do I check if my agreement complies with the rules?

If the agreement you have, does not comply with how it is supposed to be set out, or show all the compulsory (prescribed) terms, the creditor (Bank, Loan Company, Credit Card Provider) may not be able to enforce (hold you to) the agreement without taking the matter to court. Even then, in some cases the Court may not allow enforcement of the agreement if there are serious errors or omissions (very important information not supplied, or procedures not followed). Coming very soon, will be an 'Ideal Example' of what a fully compliant Credit Agreement must/should contain.


What information should be supplied on a compliant Credit Agreement?

As you can imagine, there are various types of credit agreement... for example, there are loans, credit cards, store cards, hire agreements, hire-purchase agreements etc etc. As above, the Ideal Example of an agreement will have a list of different types of agreement, and what is required in each type.

The Office of Fair Trading have 2 notices specifically dealing with 'Cancellable' and 'Non-Cancellable' agreements, showing prescribed terms, and many rules and requirements. There is a copy of these documents now in our Library.

You may find that if the creditor has provided you an alleged 'True Copy of the Original Signed Executed Agreement' and it fails to contain to, or adhere to the guidance and regulations regarding form and content etc, they may not be able to enforce the agreement at all (not even through a court)!
Sometimes, consumers are 'induced' into a credit agreement with offers of a holiday, free gifts, cash back etc. These 'inducements may also make your agreement unenforceable.


What are Prescribed Terms?

These prescribed terms are what are required/compulsory/obligatory details that make up your agreement.As mentioned before, if the prescribed terms are missing, incorrect or not applicable to your alleged agreement - it can severely affect the compliance and enforceability of it.
For example, some prescribed terms are;
  • The Total Amount of Credit / Credit Limit
  • The Annual Percentage Rate (APR)
  • The schedule of payments required
Some examples of Required terms are;
  • The Creditors Name and Address
  • The Debtors Name and Address
  • Signatures which execute the agreement
  • Cancellation rights / cooling off period if applicable
Some of these details are allowed to be omitted if you request a true copy of them - according to the Consumer Credit Act 1974. If request as part of a Full Subject Access Request, it really must be a true copy of the agreement, as they would rely upon to enforce in a court of law!


What is my First Step now?

To request a True Copy of the Original Signed Executed Agreement, use this letter . Edit and include your own details. Send it Recorded or Special Delivery to ensure it gets there, and to start your 12 working day turn-around time limit from the delivered date. Also, don't forget your required payment of 1 by cheque or preferably postal order - crossed (The Post Office will now what this means if you don't!).


What happens next?

If the creditor fails to provide the True Copy of the Original Signed Executed Agreement - they are in DEFAULT!This means that they have failed to comply with your legal request under The Act, and until they comply properly - they may not enforce the agreement, chase for payment, increase or add charges/interest to the 'alleged' debt, disclose information to any agent or debt collector chasing you.

In the link above (to the Library), there is a non-compliance letter for a creditor not supplying the requested information. After 12 working days, consider sending this letter to chase up your request.


Still nothing, or what they have sent does not comply. What Now?

From the expiry of your 12 working day time limit - the creditor has 30 days (one calendar moth) to provide the True Agreement.If they do not, or supply insufficient or non compliant documents, they have comitted an OFFENCE under The Act.

At this point, you should consider immediately reporting their failing to their Local Trading Standards Officer ,just enter their postcode, or go to Consumer Direct . Change, edit or adapt the letter for your case, and as always - send it Recorded Delivery or Special Delivery.


What Now, still not resolved?

Whilst the account is in Default by the creditor, and you've not been supplied with a correct (or any) response, the debt is unenforceable. You can write to them, stating that whilst the account is in dispute following their non-compliance of your repeated requests, you are now with-holding payments until such time as they comply as per s77, s78 or s79 of The Act. This should prompt some sort of response, as they are now not getting paid!

Don't forget, as soon as they can provide a True Copy of the Original Signed Executed Agreement, they can legally enforce the debt, and you will be liable to re-start payments as before. They cannot ask for, or add charges or interest for the period they were in default of your request.
If they start to harass you, continue to demand payment or write threatening letters to you - use any/all letters here .

Just remember,If you're not sure about something, if you need help or advice - start a thread in the section that relates to your bank or credit card company, and we'll do what we can to help you.

If possible, try and scan any document you have, and post it to your thread. We can give a more informed opinion/advice then.

Best regards

Consumer Credit Support.
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Any advice or guidance given by Perseus or Consumer Credit Support is provided without prejudice, and is based on personal experience only. Please seek professional legal assistance to clarify your particular case. Thank you.

If we've helped in recovering bank charges, please help us keep this site alive for others by donating.

sedit qui timuit ne non succederet.
He who feared he would not succeed, sat still.

Last edited by Perseus : 27-07-2007 at 01:09 PM. Reason: Required/Prescribed - thanks Ink!
  #2  
Old 27-07-2007, 01:01 PM
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InKogneeToh InKogneeToh is offline
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Default

Hi Pers

There are only 4 prescribed terms:

amount of credit
credit limit
rate of interest
repayments

All the other terms are required terms but not prescribed terms.
  #3  
Old 27-07-2007, 01:10 PM
Perseus's Avatar
Perseus Perseus is offline
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Default

Duly amended Ink - Thank you..
__________________
Any advice or guidance given by Perseus or Consumer Credit Support is provided without prejudice, and is based on personal experience only. Please seek professional legal assistance to clarify your particular case. Thank you.

If we've helped in recovering bank charges, please help us keep this site alive for others by donating.

sedit qui timuit ne non succederet.
He who feared he would not succeed, sat still.
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