Santander overdraft account - no cca but have just issued default

[skybluechic]

Hi, I have recently sent a cca request to Santander for a current account my boyfriend had. They responded on a compliments slip in hand written form "we are unable to locate a copy of the application" that's it, no formal letter or anything like that. Within a couple of days he has now received a default notice from them? By sending them a cca request does this mean the account is in dispute and can they then issue a default on a disputed account?

Any help would be much appreciated!

[silverfox1961]

Hi,

The account may be in dispute but that doesn't mean that the debt doesn't exist. Even though they haven't supplied the agreement, they are still alllowed to default him. This is what they can and cannot do:

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/unenforceable-credit-agreements

If the default is easily remedied, I would do so otherwise it's 6 years of bad credit ratings

[firstship]

skybluechic............Hi.........regret a bank account/overdraft is not covered by CCA 1974,therefore your assumption that the account might be in dispute is not valid...Silverfox has covered the default situation and what to do.................Question what is the dispute with the bank account///????????..................FS

[silverfox1961]

Firstship is quite correct-I missed the current account bit (getting doddery in my old age) Current accounts have a part v exeption

[skybluechic]

Ok no problem, thank you for the advice!

[Abby25]

The advice I have recd is that current accounts have part v exemption, if the bank claims they are seeking to reply upon it ... if they don't they aren't.

 

Once the OD has been withdrawn, or you go over your OD limit, they have to send you WITHIN 3 months, notification of the rate of interest you are being charged .. failure to do so takes the OD into the CCA arena - which means that they have to supply you with a CCA - which doesn't exist in the traditional format for an OD - so therefore whilst it will stay on your credit record for 6yrs, it is unenforceable.

 

I have used this argument myself - and have not been pursued further.

 

Have a hunt round on here, there are/were a few OD threads where all this has been discussed at length ..... hope this helps

 

Abs x

[ncf355]

Oooh!

 

Now THIS is very interesting

 

Abs - is there a thread that elaborates more on this as I'm sick of the grief from loads of DCA's re overdraft with LTSB?

 

Thanks

[Abby25]

Hi,

 

ODs are regulated under the Act - but not the current account itself - and you don;t have a traditional CCA.

 

I have had this confirmed by experian, who have advised that is why only the amount of your od is recorded, and not what you are in credit by .. (if that makes sense).

 

Try this .... there's others if you look about ... http://www.consumeractiongroup.co.uk/forum/showthread.php?237096-Are-overdrafts-covered-by-cca-s

 

The letter I have sent is here as an attachment ... it mentions signed agreement to see what their response was .... which was nil ....

current acct letter.pdf

Edited December 1, 2010 by Abby25