Amendments were made to the Consumer Credit Act (CCA) in 2008, requiring annual statements and reminders of how you could exercise your right to terminate early without penalty. Forecast settlement figures also had to feature in the statements. Around the same time the Office of Fair Trading (responsible for regulating the CCA at that time) cottoned on to the insurance industry selling annual products by monthly payments "with an admin fee" and pointed out that these were actually loans. That was an interesting and lucrative few months as I got involved in developing a number of front-of-house systems for a few of the big names 8)
Back to Gareth's letter; a lot of companies got this wrong in the first 18 months of implementation and have realised that with the regulation now being the responsibility of the FCA (LOTS more teeth than the OFT) they had better perform remediation sharpish. Expect a few others to follow suit!I know it's not considered "kind" to say no these days, but no. Just no, ok? And if it's not ok, still no.
Here's the relevant section - with the penalty for non compliance highlighted (my emphasis)
Quote:
77AStatements to be provided in relation to fixed-sum credit agreements
[F263(1)The creditor under a regulated agreement for fixed-sum credit must give the debtor statements under this section.
(1A)The statements must relate to consecutive periods.
(1B)The first such period must begin with either—
(a)the day on which the agreement is made, or
(b)the day the first movement occurs on the debtor's account with the creditor relating to the agreement.
(1C)No such period may exceed a year.
(1D)For the purposes of subsection (1C), a period of a year which expires on a non-working day may be regarded as expiring on the next working day.
(1E)Each statement under this section must be given to the debtor before the end of the period of thirty days beginning with the day after the end of the period to which the statement relates.]
(2)Regulations may make provision about the form and content of statements under this section.
(3)The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of a statement under this section.
(4)The creditor is not required to give the debtor any statement under this section once the following conditions are satisfied—
(a)that there is no sum payable under the agreement by the debtor; and
(b)that there is no sum which will or may become so payable.
(5)Subsection (6) applies if at a time before the conditions mentioned in subsection (4) are satisfied the creditor fails to give the debtor—
(a)a statement under this section within the period mentioned in subsection [F264(1E)] ; [F265or]
(b)
[F265such a statement within the period of one year beginning with the day after the day on which such a statement was last given to him.]
(6)Where this subsection applies in relation to a failure to give a statement under this section to the debtor—
(a)the creditor shall not be entitled to enforce the agreement during the period of non-compliance;
(b)the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and
(c)the debtor shall have no liability to pay any default sum which (apart from this paragraph)—
(i)would have become payable during the period of non-compliance; or
(ii)would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).
(7)In this section ‘the period of non-compliance’ means, in relation to a failure to give a statement under this section to the debtor, the period which—
(a)begins immediately after the end of the period mentioned in F266. . . subsection (5); and
(b)ends at the end of the day on which the statement is given to the debtor or on which the conditions mentioned in subsection (4) are satisfied, whichever is earlier.
I know it's not considered "kind" to say no these days, but no. Just no, ok? And if it's not ok, still no.
17th Nov 2014 9:41 pm
Gareth Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26757
Cheers Al
So, for anybody interested, I took out a 3 yr finance (monthlies with a balloon at the end) in March 2009. I paid off the whole lot about 10 months early IIRC.
Finance was through a main dealer, branded as Land Rover finance, but was with blackhorse.
I know it's not considered "kind" to say no these days, but no. Just no, ok? And if it's not ok, still no.
17th Nov 2014 10:49 pm
Woolmeister
Member Since: 26 Mar 2007
Location: Chandler's Ford
Posts: 3463
NoDo$h wrote:
Expect a few others to follow suit!
Well, I also got a letter through the post this morning from Volkswagen Financial Services (who finance SWMBO's Golf):
"I'm writing to you regarding your current agreement with us. During your agreement, we are obliged to provide you with account statements under the Consumer Credit Act 1974."
"Unfortunately, we recently discovered that a number of these documents hadn't been issued on time. As a result of this, over the next seven days your account will be be credited with £xx.xx which is the amount of interest of the payments which were due during the time you didn't receive your statement."
Seems as though many of these car financing companies are keen to admit some liability before the heavies get stuck in. And it looks as though their failure to issue statements is the problem here.
I wonder if I'm due anything from Stratstones, when I took out the lease on the D3 in March 2007? That was paid off almost 5 years ago now. Stratstone's don't use Black Horse, as far as I'm aware. They use Pendragon. Can anybody confirm? How can I find out?
Anyway, that's my new D3 battery paid for! Thanks, VWFS!
Steve2021 BMW iX3 Premier Edition in Carbon Black ⚡️🔌
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Member Since: 18 Apr 2012
Location: Gloucestershire
Posts: 3626
hmmm 2009 I had my FFRR on with Lombard
2012 I got the D3 and that's on with Black Horse via LR
How would one be able to tell if either of those agreements would apply to this?MY15 DIY Black Pack (Better than factory and half the price!)
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19th Nov 2014 3:05 pm
gje
Member Since: 09 Mar 2014
Location: world
Posts: 488
Had a similar letter from Tesco Bank re a loan I had paid off about 2 yrs ago - a nice refund cheque was enclosed. Something about not sending a yearly breakdown or statement.
Sounds a bit like the PPI stuff but this time they are acting before it hits the fan & settling.
19th Nov 2014 4:17 pm
dubbs
Member Since: 18 Apr 2012
Location: Gloucestershire
Posts: 3626
I'm just wondering how you can get a bit proactive.... I can't remember if they sent me the right type of statement or not.MY15 DIY Black Pack (Better than factory and half the price!)
Prospeed rock/tree sliders w/steps
HSE Winter wheels
TransK9 B24
Travall Cargo Guard
Hatchbag
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