Are banks obliged to provide a CCA for an OD facility?!

[rory32]

No Fred because it is a credit agreement. They won't be confused at all about what you are asking for.

[Laughing Boy]

I've just checked the agreement I received,

 

Governing Law

This agreement letter shall be governed by and its terms shall be construed in accordance with English law.

 

British Bankers Association: Statement of Principles

The Bank would draw your attention to the BBA statement of principles booklet enclosed with this letter, and in that respect:

 

You warrant to the bank that you have been given the opportunity to seek independent advice on this agreement letter and any relevant security documents, and that yo have either taken or declined to take such advice, and in any event you fully understand the nature and effect of the agreement letter and the relevant security documents.

[Peterbard]

HI

Sorry to take so long getting back to you .As i said earlier the bank will not have an agreement for your overdraft becase they are not required to do so see this letter i recieved from the OFT.

Dear Mr Bardsley

CONSUMER CREDIT ACT 1974 (the Act)

Thank you for your emails of 15 March 2007, concerning overdrafts, and of 22 March 2007, concerning credit card agreements, which have been passed to me to reply. I apologise for the delay in replying.

I should note that unfortunately the Office of Fair Trading (the OFT) cannot comment on or intervene in individual matters. This is because such actions fall beyond the remit of the OFT and because the OFT cannot be aware of all of the relevant information in each instance. Similarly, the OFT cannot comment or express a view on particular practices, save where the OFT has considered a practice in the round and its view is in the public domain. The following points are therefore general in nature.

Overdrafts are normally not subject to those elements of the Act governing form and content of an agreement. This is because the OFT has issued a Determination under Section 74(3) of the Act excluding overdraft agreements from the need to comply. As a result of this there is usually no written agreement that a consumer can request under Section 78 of the Act. However, I should note that any Bank wishing to avail itself of the benefit of the Determination must notify the OFT of its intention to do so and is required to provide information to the prospective debtor. Specifically, the creditor must provide, in writing, at the time the agreement is concluded or before details of the credit limit if any, the annual rate of interest and any charges available, and the process for terminating the agreement. Typically banks make such information readily available via a variety of media on an ongoing basis.

As said there is no agreement because the section of the act that covers the making of agreement (Part v)is exempted.

 

Best regards

Peter

[Casiemcdw]

Don't know if this the right place to ask but anyway.

 

If a bank annually increases an overdraft limit without informing the account holder, other than by printing it on their statement after the fact, are they in breach of the CCA?

[ian1969uk]

No, because you don't have to use it.