CCA 2006 ammendments - got issue with bank loan

[panzai345]

Hi fellow Caggers,

 

Got an issue with a high street bank in relation to an unsecured loan i took out for over 25k back in March 2007,

this was done via mail with no interaction with anybody from the bank, they sent me the offer i signed and sent it back.

 

it is my understanding the loan is not covered by the CCA as the upper limit was not changed till April 2008 to cover loans over 25k.

The bank, however is saying it is covered. I think they have messed up.

 

Any ideas what to do about this, is the loan voidable?

i have asked them to send me a copy of the agreement.

 

Panzai345

[dx100uk]

then the agreement will tell you.

 

dx

[citizenB]

I think you need to wait on receipt of the copy agreement.

[panzai345]

Cheers Guys,

 

Will see what the agreement says, got a feeling that my bank may have done a Northern Rock, Ie the loan paperwork was issued saying it was covered when the law says it isn't.

[panzai345]

Ok, received my credit agreement today. It clearly states it is regulated by the CCA 1974 at the top of the agreement and in the signature box.

 

I signed the document in March 2007 as did the bank, but the bank signed the document 5 days before i did.

 

any ideas as to what i do? Do i tell the bank they have made a mistake or leave it?

[panzai345]

Spoke to the bank yesterday and told them the situation, they are currently investigating.

 

I read through this thread w.ww.consumeractiongroup.co.uk/forum/showthread.php?178390-Credit-Agreements-over-25k-Pre-April-2008 yesterday and it would appear that these types of errors open a few cans of worms. Any advice would be appreciated.

[Conniff]

What is your actual complaint and what are you hoping to achieve ?

[panzai345]

Coniff,

 

That the agreement is unenforceable, as the loan was over the 25k limit so cannot be regulated by the CCA, if they say it is now an unregulated agreement then surely we have an issue with the contract which i believe to be void!!!!

[Conniff]

I would say you need to dig deep into the regulations. Do they say that sums over £25k cannot ever be regulated or that they need not be regulated?

[panzai345]

as far as i am aware loans taken out before april 2008 over 25k were unregulated as they were over the limit prescribed in the CCA. I beleive they can become regulated if there has been a variation, in my case there has not been a variation.

 

There is a similar issue with Northern Rock together mortgages where they were issuing unsecured loans over 25k on regulated paperwork and then saying they were not regulated.

 

My copy of the Loan agreement clearly states it is regulated under the CCA, i signed in the box agreeing to be regulated by the CCA, yet the document was executed pre april 2008 therefore it is not regulated under the CCA.

 

All im asking is whether the agreement is now void as it is not compliant with the CCA even though it says it is....confused!!!!!

[panzai345]

Update, Bank have confirmed it is an unregulated agreement and that they made a mistake...but it doesn't extinguish a valid contract between me and the bank!!!!

 

Hmmm, cant see how it can be a valid contract when i signed to be bound by the CCA1974 when in fact it wasn't?????

 

Any thoughts on how to approach this?