HSBC says no agreement, but you still have to pay???

[Valhalla]

Hi

Here's a new one on me. Any comments or ideas

 

I took a Flexiloan account with HSBC years ago and the balance was £400 when I got into some financial bother a few months back and stopped making the usual regular monthly payments into the account.

 

I sent a CCA to HSBC asking for a copy of the credit agreement. I said in the letter that I expected an answer in the usual time period.( 12+2 days and then 30 more days)

That was way back in April and I still haven't had any response at all to my CCA request.

 

Now Moorcroft is on at me claiming the money.

 

I wrote to Moorcroft saying that I had not received a response from HSBC, that I believed HSBC to be in default because they hadn't replied and telling Moorcroft to go away until they could find the agreement.

 

Moorcroft's reply today says that they've contacted HSBC who tell them that because the account was opened prior to 2002 "the agreement is unavailable due to the age of the account", but since I have used the account I am still liable for the debt.

 

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I feel like writing back to say the following, but before I do can anyone give me some pointers/comments and tell me if I am barking up the wrong tree or not?

 

a) HSBC is still in default of my lawful request for a copy of the agreement and that whilst that default continues neither HSBC nor anyone acting on their behalf may take any collection action. If they do so, I reserve the right to report them.

 

b ) the age of the agreement is no excuse for not producing a copy

( Is this correct ?)

 

c) Moorcroft are comitting an offence in continuing to pursue me furthermore they are harassing me for a debt for which no evidence has been produced.

 

d) I won't deal with Moorcroft anyway because they are merely a third party and not the original creditor.

 

Any comments please?

 

I don't want to fire off at them if I am not on reasonably solid ground

 

Thank you

 

Valhalla

[desigaand]

tell them straight,they cannot produce evidence of the debt,so your not paying them.invite them to take you to court.

[citizenB]

You might want to remind them of their obligations under moneylaundering and tax laws as folllows.

 

Finally, key documents/application forms etc must be kept until 5 years after that business relationship has ended. This is a requirement of The Money Laundering Regulations 1993, 2003 and 2007 and The Civil Evidence Act 1995.

Document Retention

 

According to sections 221 and 222 of the Companies Act 1985, a public company is required to maintain records for a period of six years (section 222(5)(b).

 

As a loan agreement is active until the agreement is terminated, I would suggest that all the payment records (and other documents making up the file - including the agreement/application etc) would be "live" until the account is paid, or terminated - thus, the full file should be retained for at least six years after that.

 

This interpretation fits in with Inland Revenue legislation that requires prime documents to be retained for a period of six years - AFTER THE END OF THE RELEVANT ACCOUNTING PERIOD. That would mean some files need to be retained for up to seven years. The relevant legislation is found in Schedule 18 of the Finance Act 1998 (paragraph 21) - of particular significance is sub-paragraph (6) which states:

 

"The duty to preserve records under this paragraph includes a duty to preserve all supporting documents relating to the items mentioned in sub-paragraph (5)(a) and (b)."

 

I would suggest that where a loan has been taken out to repay an earlier agreement, at the very least, a copy of the original agreement should be kept - although this is something that a court may need to rule on.

 

Finally, key documents/application forms etc must be kept until 5 years after that business relationship has ended. This is a requirement of The Money Laundering Regulations 1993, 2003 and 2007.

[Valhalla]

Thanks Citizen B

 

This is terrific and much appreciated,

 

Valhalla

[Valhalla]

Thanks Desigaand

I think I'll try just that

 

Valhalla