Significance of "Offer Letter" in enforcement action

[Csol2001]

Hi

I was recently in Court to defend in person the Banks attempt to rail road thru a recovery action against me on my overdraft.

I was defending on the grounds that an overdraft was a running account and not exempt from part V of the CCA 1974. Also that the Bank had not followed all of the procedures in opening the account - in particular the "offer Letter"

 

The judge said in his summation "The claimant says that at the material time the defendants would have been sent an offer letter confirming that the account was opened and sending them a terms and conditions and tariffs and charges leaflet, but there is no evidence before the court that that documentation exists

 

In the circumstances, the claimants say that they have complied with condition (2)(b) by providing the material information required by that condition in writing. The Defendant says they have not complied with it. In my judgment, they have complied with it and the reasons that I say they have complied with it are quite simply these.

 

The purpose clearly is that the information is given in writing as opposed to orally and is confirmed in writing. The confirmation in writing has to be provided at the time the agreement is concluded or before the agreement is concluded. The information in this case, in my judgment, was clearly provided before the agreement was concluded. It is provided in writing in the form of the application. The form of the application says, as I have already read, that “a minimum overdraft facility of £??? will automatically be allocated when your account is opened”. That is the credit limit.

 

The defendants, when making the application, confirmed that they “agree to be bound by the claimants’ terms and conditions as varied from time to time, a copy of which has been provided to us”. Therefore, the terms and conditions were provided and confirmed in writing and acknowledged by defendants by their signing of this application form"

 

How does this now stand under contract law as my argument is

 

1) An application form is an offer of services to open and administer a bank account ?

2) An "Offer Letter" must to be sent out by the Bank to confirm that the application has been successful and the account is opened with T&C's etc ??

3) In order for a contract to be crystalised - the "Offer Letter" must be accepted.

 

The Bank is saying that by me signing and ticking the box on the application form - that I would be bound by the terms , this meets their obligations under OFT Determination s74.

 

However in the the application form the Bank says that if I am successful, I will be sent and "Offer Letter" and also how to terminate the account.

 

Despite "SAR" request. Neither of these letters ever surfaced ?

 

So my question is - Without the "Offer Letter being entered into Court as evidence -was the account opened correctly under Contract Law and therefore enforceable.

 

I am sure that this might have implications for other Forum folks in a similar position.

 

Tx