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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71267
Experience:  Over 5 years in practice
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hi my bank clydesdale/yorkshire bank have sent me a letter

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hi my bank clydesdale/yorkshire bank have sent me a letter stating that . we write to advise you that we cannot locate a copy of your executed credit agreement. therefore at the moment we will not seek to enforce the agreement. i need to know please if i need to continue my payments or stop payments until the agreement is found by the bank also if you please what is a reconstituted agreement and is it any good kind regards bernard

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

Are you in arrears? If so how much?

Were they threatening enforcement proceedings?
Customer: replied 3 years ago.

i am not in any arreas i am still paying monthly and not missed any payments. no enforcement proceedings have been threatened the bank states in the letter .even though we connot enforce the agreement at the moment should i fail to make payment in accordance with the terms of your agreement we will disclose fault data to the credit reference agencies. the bank also states that interest will accrue on the outstanding debt .

Thank you. I was going to tell you exactly what you have just told me the bank have told you.
You will be in default and they can report this to the credit agencies which can affect your credit history.
The difficulty you face is that if they do find a copy of the agreement they can enforce any arrears and interest although once the debt has been stagnant for six years if a credit card or loan or 12 years if a mortgage, they lose the right to enforce the agreement in any event under the Limitation Act which sets time limits.
What you are doing therefore is risking them coming up with a copy of the agreement at some stage in the future.
There is one way of resolving this and that is rather than pay the money to the bank to put it in a separate deposit account (for 6 years or 12 years depending on the type of finance), and then spend it when it is out of time for enforcement. If they found the agreement in the interim, you could part with the money that you had saved however, meanwhile, the default would affect your credit rating and there would be penalty interest if they found the agreement.
Anything that you do apart from continuing to pay the loan bears a risk.
Can I clarify anything for you?
Customer: replied 3 years ago.

thanks thats what i was thinking of doing putting it in a separate account just one more question can the bank sell the debt on to a debt collection agencie if they cant find an agreement. kind regards bernard.

They can always sell it to a debt collection agency but the debt collection agency are bound in exactly the same way as the bank although if they do sell it expect some letters from the debt collection agency who will try to intimidate you into paying.
Jo C. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

is it worth me sending the bank . account in dispute - section 10 notice

Customer: replied 3 years ago.

hi did you get my last question about sending a section 10 notice to the clydesdale/ yorkshire bank. kind regards bernard.

What is it about the account that is in dispute? Do you deny that you all the money? Remember that until they supply you with a copy of the credit agreement, it does not mean that you do not own the money, it just means that they cannot enforce the debt through the courts.
Customer: replied 3 years ago.

i think the credit visa card was mis sold to me in the early 1990 .the effect of section 6 (schedule 6) of the consumer credit agreement regulations set out a number of prescribed terms that must be contained in the credit agreement the effect of section 127 (3) is that where an agreement does not contain any one or more of the prescribed terms so that there is a breach of schedule 6 the agreement as a whole will be irredeemably unenforceable as far as i am aware this means the bank cannot obtain an order from the courts to enforce the agreement i am undecided as to what to do also this bank has refused to give me back my ppi i have been payin for the last 10 years the ppi claim is now in the hands of the financial ombudsman kind regards bernard

Thank you. I am aware of the effect of the various sections of the CCA, but at the moment you have no proof that the prescribed information was not given to you. Until such time as they let you have a copy of the agreement it does not mean that it's in dispute it means that it cannot be enforced.

Just because you have ppi does not necessarily mean that it was mis sold. You have to prove that either you did not know you had it all that you said that you did not want it but got it anyway or told that it was a condition of having the card. If that is with the Financial Ombudsman obviously it is going to be cheaper than going to court and risk-free although it could easily take 12 months to resolve one way or the other.