Account in Dispute Letters

Send this letter to your bank if they threaten to issue a default notice:

— ACCOUNT NUMBER: XXXXXXX Dear Sirs Re: Account in dispute I am writing to clarify that I am currently in the process of requesting a refund of bank charges unlawfully made to my account. I note from your latest correspondence that you are proposing to issue me with a Default Notice on this account. I need to make you fully aware that I am disputing the sum owed and, as such, you must refrain from any further action until this dispute is fully resolved. The current Banking Code (Section 13.6) states: We may give information to Credit Reference Agencies about the personal debts you owe us if: You have fallen behind with your payments, The amount owed is not in dispute; and You have not made proposals we are satisfied with for repaying your debt, following our formal demand. I would also like to make you aware of The Office of Fair Trading Code of Guidance in which it states: putting pressure on debtors or third parties is considered to be oppressive This includes ignoring disputes about whether money is owed and refusing to freeze action if the debt is in dispute. If you do not stop this default action and proceed by making any adverse comments on my credit reference files, I shall be forced to take legal action against you under the Data Protection Act 1998. I therefore hope to receive your full co-operation in this matter and would like to request a written response to that effect. Yours sincerely,

Send this letter if the bank or DCA threaten court proceedings:

— ACCOUNT NUMBER: XXXXXXX Dear Sir/Madam, I refer to your letter of **/**/**, in which you advise of your intention to issue court proceedings with regard to the outstanding balance of my current account overdraft. As you are aware, this account and the balance thereof is currently subject of a dispute. I can only assume your letter has been sent in error, as you must surely be aware that action such as that you propose would constitute breaches of the banking code. This matter has been discussed in correspondence with your clients ********* department and on **/**/** I received a letter from ********, which acknowledged no such action should be taken on a disputed account and did in fact apologise for previously suggesting otherwise. A copy of the correspondence to which I refer is enclosed for your reference. Additionally, this action you propose is clearly quantifiable as retaliatory due to my own claim against your client to recover unlawfully levied penalty charges. To proceed as you have indicated would therefore be contrary to the statement of the Financial Services Authority of 6th July 2006 in which it ruled such action to be discriminatory. I also believe this action to be tantamount to a sanction imposed merely for pursuing my legitimate right of seeking a judgement from a court. I trust your client is committed to upholding the standards of the Banking Code to which it subscribes, and would not hold its regulator, the FSA, in such contempt as to ignore its 6th July statement. I will allow you 7 days to reply to me, in writing or by Fax only, withdrawing the threat of action imposed in your letter of **/**/**. If you do not do so, I will draw your client’s transgressions to the attention of the Financial Services Authority and the banking code standards committee, by making formal complaints and enclosing copies of all recent correspondence. I look forward to your prompt response. Yours faithfully