Fighting Debt - a user guide

5) DISPUTING A DEBT

b) Asking for Proof

If you have received a letter or phone call (ask the creditor to send the details in writing) and you are not aware of the debt mentioned then the first step is to clarify what the amount is for.

In response to the letter received, you can send a letter asking for confirmation.

A template letter is available here.

At this point you are not recognising the debt as belonging to you and are asking for further details to clarify it is genuine.

If you receive further demands for money with no details provided you can send a CCA request.

Consumer Credit Act (CCA) Request

The CCA Request is a template letter sent to the Creditor / Debt Agency requesting a copy of the original signed credit agreement between the original lender and the debtor. If you are receiving letters from a Debt Agency then the CCA request needs to be sent to them and not the original lender even if this is known.

Under the Consumer Credit Act you’re entitled to ask for full documentary evidence including the signed copy of the original credit agreement provided you enclose a fee of £1 (postal order recommended as no signature required). If this is not provided within 12 working days the debt could become unenforceable.

After a further 30 calendar days they are committting an offence and can be reported to the FSA.

The Consumer Act does not require you to sign a CCA request letter and some debt advice organisations are advising against signing your name and typing it instead. if you receive a response asking for a signature, refuse Ask yourself why do they need your signature, after all they were happy to corrospond with you previously. A letter requesting a signature does not stop the countdown to comply with your request

A template letter is available here.

The Consumer Credit Act 1974 sections 77 and 76 makes it an offence to continue to demand payment if you ask for details of the debt and they don't provide them. This only applies to regulated credit agreements, which doesn't include ordinary contractual situations where one is given time to pay for provided goods and services.

The lack of a compliant credit agreement is a very clear dispute and as such the following applies.

They cannot not demand any payment on the account, nor are you obliged to offer any payment.

They cannot add further interest or any charges to the account.

They cannot pass the account to a third party.

They cannot register any information in respect of the account with any credit reference agency.

They cannot issue a default notice related to the account.

The debt remains unenforceable for as long as the creditor fails to produce the signed credit agreement. If they produce the agreement some months down the line, they are within their rights to enforce it. They do not need to take any further action to enforce the debt. A debtor cannot take any action against the creditor for failing to produce the signed credit agreement within the prescribed time, because that is up to the agencies that the offence has been reported to.

What is a Credit Agreement?

In the case of credit agreements, the required information is:

1) nature of the agreement

2) parties to the agreement

3) the amount of credit or the credit limi

4) the duration of the agreement

5) the APR, the total amount payable, and the amounts of repayments

6) a signed signature box by the borrower, and other form of consent where applicable.

Both the borrower and the lender must sign the agreement.

An application form is not a credit agreement