@coopbankuk_help Co-Op CDL Career Development Loan

[CookieRocks]

Hi,

I've had some brilliant help here, just hoped I'd get some help regarding help needed with a CDL my sister took with the Co-Op in 2011.

 

Basically, due to Financial hardship (No income, no job), my sister has been unable to pay the agreed monthly re-payments.

 

She recieved a letter in regards to arrears early in January. We wrote back explaining that she is unable to make full payments for a period of 6 months, and if they could accept a reduced payment of £30.00 per month for a 6 month period, we could hopefully get things back on track. Stated that she should be treated fairly due quoting BCOBs. (Sent letter attached as Co-Op 1).

 

We received a reply saying that they have indemnity, letter is attached as Co-Op 2.

 

Is there anything I can write back to them, in the hope that they will stave off sending the Loan to debt collectors? Any and all advice is fully appreciated.

 

Many thanks.

Edited February 7, 2013 by CookieRocks

[BankFodder]

What does indemnity mean in this context? I don't understand what this scheme is.

[CookieRocks]

Hi Bankfodder,

 

I'm not 100% sure, but I believe that as the Career Development Loan (CDL) offered through the CO-OP, and it is in partnership with the Skills Funding Agency which is in turn in partnership with the Governments Department for Business Innovation & Skills they say they have indemnity and therefore can legally force my sister to default the CDL and send it to a DCA if she cannot make full re-payments even though she's in financial hardship. I really feel that this situation will be for a very short period of upto 6 months. Considering my sister is still only young, a default will do more harm than good.

[citizenB]

Do you have a copy of the terms and conditions please, it might help us understand better if we could see them.

[CookieRocks]

Hi citizenB,

 

Attached are the Terms & Conditions.

 

I've had a brief look at it, I can't see anything mentioning 'Indemnity' however I may have easily missed it.

 

Thanks

[citizenB]

Ok, In their letter they claim they are unable to accept reduced payments. However in their terms and conditions, they claim to have that right.

 

Clause 9 © - "General"

 

They say,

 

"We can relax the terms of this Loan Agreement and we may at any time strictly enforce the terms again. we will not lose any of our rights under the Loan Agreement by doing this. We can also accept later payments or part payments without losing our rights under this Loan Agreement"

 

So it looks to me as though they are giving you the run around.

 

 

 

Was there any payment protection insurance included with this agreement ?

[citizenB]

You might want to take this further with the Co-op, pointing out that Clause.

 

IMHO, you should now make this an Official Complaint bypassing the jobsworth who wrote to you on the 21st January, you should make the complaint to their Head /Registered office to ensure it gets the correct attention. Send the letter by at the very least recorded delivery.

 

If Wescott write to you in the meantime, I would suggest you simply point out that there an official dispute in place.

 

The Co-op have 8 weeks to respond to your complaint - if it is not favourable to you, then they must issue a Final Response letter, when you can then take your complaint to the Financial Ombudsman.

 

If you need help drafting your complaint then just yell. The sooner you get it off to them, the better.

 

HTH

[CookieRocks]

See I totally missed it - thanks citizenB

 

I'd be grateful if you could help compose a draft letter.

 

There wasn't any PPI.

 

Thanks in advance.

Edited February 8, 2013 by CookieRocks

[citizenB]

Ok, let me think about it.. I will post something up for you later on today..

[citizenB]

Ok, here you go.

 

I have attached both word and pdf copies for your use. Please feel free to amend, it is just a draft.

 

[ATTACH=CONFIG]41494[/ATTACH]

 

[ATTACH]41493[/ATTACH]

 

I suggest you send the original by Recorded delivery and the copy to Leigh Yeats by free proof of posting.

[CookieRocks]

Thank you very much citizenB, I really appreciate it. I added the necessary details and have sent them both off this morning.

I'll let you know what they send back in return.

Once again thank you.

[citizenB]

You are very welcome. Lets hope it does the trick

[BankFodder]

You need to make sure that you oblige them to explain to you what is an indemnity and where is it referred to.

It is not uncommon for bank staff to use these terms simply in order to fob off their customers. In fact they simply make it up.

 

I have often dealt with banks and they say that XXX is the case. Then when I ask them, where can I find that rule, they tell me that it is policy. Then when I ask them for sight of the policy document, they tell me that it is confidential.

 

Then when I ask them for the date and reference of that policy document - they become highly evasive and aggressive.

 

Bank staff are often very poor. They make it up as they go along and you need to learn to question everything.

 

If you find that there is no reference to "indemnity" anywhere, then you should make an issue of it and complain to the FOS. Almost certainly they will not want to go to the FOS about this and they will offer you compensation. If they have invented indemnity - then I wouldn't settle for less than £100.

Don't forget, that you want a copy of the document in which the term is contained.

I have even had a Lloyds employee try to tell me that their policy was confidential and when I asked was it really true that there were secret rules which they used to govern their contractual relationship with their customers, I was told that this was correct!!!!

 

This is why the banks are bullying and dishonest.

[CookieRocks]

Nothing to update about as yet. They acknowledged the complaint through a letter they sent. I'm betting that they'll take the full 8 weeks before they reply.

 

BankFodder, in regards to obliging them to explain the whole issue of 'indemnity', should I just wait until they reply to my Formal Complaint or would it wise to write to them and ask the relevant questions?

 

Thanks for all the help so far.

 

Regards

[CookieRocks]

Hi. Hope all are well.

 

citizenB, Co-op sent their reply today. Not good.

 

Letter is attached.

 

Thoughts?

 

Thanks

 

 

[ATTACH=CONFIG]42725[/ATTACH]

Edited March 25, 2013 by citizenB

[citizenB]

It seems to me as though they have not addressed the complaint at all !!

 

I would like BankFodder to comemnt on this latest letter, perhaps he might be able understand what they are saying to you.

 

However, my understanding of their letter is that you need to come to a payment arrangement with Wescot.

 

I will flag for BF's attention and will have a think about your next move.

 

Ok, have sent message to BF asking him to have a look. It might not be until tomorrow..

[CookieRocks]

Thanks for the reply. I'd also appreciate BankFodder's view too.

 

I agree it doesn't seem as if they've addressed the issues pointed out.

 

In regards to Wescot, it does look like the Co-op have already passed it on to them. On the day I received original reply to my first complaint which was answered by Mr Yates, also dated the same date was a Notice of Arrears. Is it normal, or rather is it allowed for the Co-op to send a Notice of Arrears and also send the file to Wescot on the same day? As this is what I believe is the case now. A bit out of order me thinks, but it's a Bank so I s'pose it's all fair game to them.

 

I await further advice from yourself and BankFodder.

 

Thanks once again.

Regards

[citizenB]

They are obliged to send Notices of Arrears at least once a year I think. This has been in force since around 2008.. I think (although it could be 2010!!)

[citizenB]

Have you received any communication from Wescott yet ?

[renegadeimp]

PDF contains names and account reference numbers.

[citizenB]

PDF contains names and account reference numbers.

 

Many thanks imp. I will sort that out..

 

Done..

Edited March 25, 2013 by citizenB

[CookieRocks]

Oh dear. Thanks for that renegadeimp. I thought I'd been careful.

 

Looks like citizenB has cleared it up for me. Thanks

 

No there's been nothing from Wescot. Notice of Arrears, I've read about that before, so that's fair enough. Surely there should be a NoA or Default before it can have been passed to Wescot.

[citizenB]

 

No there's been nothing from Wescot. Notice of Arrears, I've read about that before, so that's fair enough. Surely there should be a NoA or Default before it can have been passed to Wescot.

 

That was the reason I asked if you had heard from Wescott - when you do, can you let us see what they have to say? What I think needs establishing is whether they have assigned/sold the account to Wescott or if Wescott are simply acting as collection agents.

 

If they are only acting as collection agents, then the Co-op are telling you a lot of Bull as they will still be in control of the account and will be issuing any statutory paperwork. Anyway, lets wait and see

 

1: what BF has to say

2: what Wescott has to say.

 

[CookieRocks]

Thanks citizenB. Let's await BF's input.

 

Regards

[BankFodder]

Send this

Thank you for your letter of the 21st March.

 

Your letter is clearly at odds with the terms and conditions of the contract - and I have already pointed this out to you.

 

If you have some private or industry understanding with the Skills Funding Agency or any other body , that is nothing to do with me.

 

You have contracted with me on your own standard form contract - which as you know is not subject to negotiation. You are now trying to tell me that part of the contract is not valid because you have some other interests which you would rather resolve even though it means that my interests are sacrificed.

 

Although it is clear from the contract that you have a discretion to accept reduced payments, this is not the basis upon which you have refused me.

 

As you know, you are bound by BCOBS which is now controlled by the new FCA which replaced the FSA this month.

 

You are treating me unfairly and in breach of your statutory duty in that:-

 

Your letter deliberately seeks to mislead me as to my contractual rights and your contractual obligations.

You prioritise some perceived duty to the Skills Funding Agency above your duty to me - your customer.

You have apparently entered into some industry agreement which purports to be in conflict with your own terms and conditions

The contract gives you a discretion to negotiate a reduced payment scheme with me but you have refused to consider the exercise of that discretion

Under FCA rules you are obliged to have regard to my situation and to take any hardship circumstances into account and you have refused to do this.

 

I now wish this matter to be put before the Ombudsman.

Please note that the complaints listed above form the the basis of the matter which must be considered by the Ombudsman - not the items listed in your letter which has conveniently missed the point.

 

YF