Q: A bank has in accordance with its accounting rules and practice written off an outstanding debt due from an individual customer although the account was not terminated on records from the perspective of the individual customer who was not told about the written off arrangement. Does the account still qualify as "existing consumer credit facilities" so that the bank can still access the credit report of that individual for "review" purpose under Clause 2.9.1.2?
A: The Code respects the credit providers' own treatment of account in line with the general accounting practice. If an account is considered to have been "terminated" (as opposed to perhaps suspension of the account due to default), it does not quite follow that such an account can at the same time be regarded as "existing consumer credit facilities" so as to justify access under Clause 2.9.1.2. The rationale being that access for review is according to Clause 2.9.3,2.9.4 and 2.9.5 done for the purpose of increasing, curtailing or putting in place of a scheme of arrangement . Since an account has already been "written off", it may not normally be regarded as being an "existing consumer credit facilities" where review is needed.