I have un-enforceable loan - but company say they will default me, if I stop paying?

petermb_2 · 5 January 2009 at 10:47AM

I have been saying this for a couple of years now. If the Lenders get their paperwork correct and they have done the right things they will have nothing to fear from both the client or the law. Get it wrong and they will pay the price for your failings.

For those who bleat on about how adversely this will affect the loan companies, dont bleat too much, many have used the excess money they have made over the years to build up huge contingency funds specifically for this purpose.

I know of one that has such a fund that containing £4billion. That is a lot of rainy day money for any company.

PILLA99 · 5 January 2009 at 1:51PM

I also have a loan that I think is unenforceable and I was wondering where I would find the template letter that you used.

thxs

Beetlebug1983 · 5 February 2009 at 5:40PM

I have outstanding debts that i am paying slowly. I used to do this with the cccs, but found them to be unhelpful at times. I have now arranged a DMP with my creditors on my own back, and it seems to be going ok.

I am just intruiged by this un-enforcible thing. What is the point of it, because it doesn't write your debts off. I probably have un-enforcible debts, but i am going to keep up with my repayments because that is the moral choice i have decided to make.

However, am i right in thinking, that if a DCA/creditor threatens you with action, you can put this on the table to prevent defaults/ccj's etc??? Also, if a debit is clearly un-enforcible, are you able to request that previous defualts etc are taken of your credit file?

Is this a case of writing to the DCA/Creditor and requesting that you want a copy of the orignal credit agreement? If they are unable to provide this, what is the next step, how do you get the DCA/Creditors to say that the debt is un-enforcible. Who actually decides??

limegardens · 17 February 2009 at 5:15PM

Hi,

Firstly thank you, this thread has been quite funny to read.

Everyone is intiled to thier view, however, lets not forget the banks are not vulnerable old ladies, infact we're the pray. An agreement is an agreement and should be kept, except with someone who is looking to rip you off!. The banks do whatever they can to increase profits and if that means mislead or ripping us of with unfair charges then fine they will do that.

So I have no simpathy for the banks, so good luck with your claim !

If the banks introduced fairer, transparnt banking with no silly charges, and actually helped people them maybe more people would not try things like this.

jojo1964 · 17 February 2009 at 6:13PM

limegardens wrote: »

Hi,

Firstly thank you, this thread has been quite funny to read.

Everyone is intiled to thier view, however, lets not forget the banks are not vulnerable old ladies, infact we're the pray. An agreement is an agreement and should be kept, except with someone who is looking to rip you off!. The banks do whatever they can to increase profits and if that means mislead or ripping us of with unfair charges then fine they will do that.

So I have no simpathy for the banks, so good luck with your claim !

If the banks introduced fairer, transparnt banking with no silly charges, and actually helped people them maybe more people would not try things like this.

Fair point, but the difference is between the cant pay/wont pay scenario, if you have borrowed the money and are able to pay, then i think it should be paid, on the other hand, if somebody is in a position that they are unable to pay (due to a change in circumstances) then if it is unenforceable, it gives somebody a lifeline, personally i believe a debt should be paid, but if my circumstances changed to the point i was unable to pay, then i would use any means at my disposal to get out of paying my debts, the other option being made bankrupt, either way the banks might not get their money.

maz1964 · 17 February 2009 at 7:20PM

hiya

this thread fascinates me

in my humble opinion its about the necessary documentation as part of the credit card agreement or cca 1974 that sometime is getting missed

i posted something i found that maybe might help appease those who think as you have spent the money you should just pay......

here it is and may i add the case was won exactly on the letter of the law

Am back,,,,,,,,

like someone else said, its only since 1974 that they should be getting this correct, with the cca, and the engineer of the cca act put it so well,

*****
As the draftsman of the Consumer Credit Act 1974 I would like to thank Dr Richard Lawson for his interesting and well-argued article (30 August 2003) on Wilson v First County Trust

Ltd [2003] UKHL 40, [2003] 4 All ER 97.

Dr Lawson may be interested to know that I included the provision in question (section 127(3)) entirely on my own initiative. It seemed right to me that if the creditor company couldn’t be bothered to ensure that all the prescribed particulars were accurately included in the credit agreement it deserved to find it unenforceable, and that the court should not have power to relieve it from this penalty. Nobody queried this, and it went through Parliament without debate. I’m glad the House of Lords has now vindicated my reasoning and confirmed that nobody’s human rights were infringed.

167 Justice of the Peace (2003) 773.

so as if that is not poetic justice i dont know what else can be...:T

have a fun day maz

ORRRRRRRRRRRRRRRRR put it another way,,, lets add up the interest and penalty charges, then add up what you actually spent, subtract and if you are left with a balance owing and you wish to pay back the remainder - pay it back cos that is what you actually did spend,,,,, as the contract may not have been correctly executed, the court cannot enforce it, so really there is a choice to bring this matter to a proper ending,,, but as i said at the beginning it is only my humble opinion but still dont forget about legal essence of the act.

Brassneck · 17 February 2009 at 7:25PM

lclclclc wrote: »

I have a loan, which is unenforceable. I did a Subject Access Request for my CCA, and NatWest replied firstly with just a list of payments due to be made for the rest of the loan, the amount I took out, the date. But, NO APR, NO PPI amounts etc. I wrote back to say that this was unacceptable, and that I wish to see a signed copy of my credit agreement, with all of these details. They then write back to tell me that they have "misfiled and cannot locate my credit agreement". I write back, using templates provided on this website, and some others, informing them that I am refusing to pay this loan anymore,I want a full refund of any amounts paid to date and to return my account back to zero. I receive a letter from them on xmas eve?!, to inform me that under s.77 (4) of CCA, that they would be unable to take steps to recover the debt via court, they would register me as a default with the credit reference agencies.

Can anyone offer me some advice. I have sent a mail to Experian to check whether NatWest are legally able to default me on agreement which is legally unenforceable? I have opened a new bank account with another bank, and I am prepared to not make another payment on this loan - why should I..

Should I raise this matter to FOS, should I speak to CCCS, or my local CAB- or should I speak to a solicitor to take the matter up on my behalf ? I am hesitant to do this, because I have as come as far as this stage, with the help of some of the very helpful people on this website, and my own determination and persistence in writing letters and making phone calls.

any advice appreciated.

Just a bit that may help.

My partner and i were taken to court by a finance company, there is details on here somewhere, over a vehicle they repossessed.

Upshot was as they "mislaid" the contract and agreement, despite having copies, there was "no contract" as the original was not presentable. This is a point in law according to our magistrate, no original document, no contract.

So if they have mislaid yours.................

Credit-Crunched · 17 February 2009 at 8:06PM

"..I know what I am talking about.. I have a friend who is an insurance underwriter @ Lloyds of London, and the PPI and unenforceable loan thing, is what they foresaw a couple of years back - and subsequently insured/re-insured themselves, anticipating a a huge amount of claims..so..if the claims start coming in, they are insured to a degree, and if they dont start to see a lot of claims"

I am sorry but you do not know what you are talking baout, it is ILLEGAL (fsa, fsma2000 and EU regulations) for banks to take insurances to pay out fines and compo relating to mis-selling.

". I'll use the useful information given to me by certain people on this website, and people like you, well, go and live a miserable existence. I dont need to justify myself to dour and moralisitic people like you!! I came on here for advice, not be judged by anyone..get a life"

Pot, kettle black? the irony of that statement really was not lost on me, made me laugh.

dunstonh · 17 February 2009 at 10:03PM

I am sorry but you do not know what you are talking baout, it is ILLEGAL (fsa, fsma2000 and EU regulations) for banks to take insurances to pay out fines and compo relating to mis-selling.

It is an FSA requirement for firms to have the funds put aside to a certain level or an insurance policy to pay redress. Having just paid just over £2000 for my annual premium i can assure you it exists.

Interesting thread. It does reflect the compliance warnings that we have been given advising us to stay away from claims companies asking us to refer potential clients. One of the warnings was that some debts may end up becoming unenforceable but still remain on the credit history as a default. In these cases use of a claims company could see £x amount being paid to them but the client not being able to obtain credit again in the future due to the default still showing. These individuals could then claim bad advice against the adviser that introduced them.

lclclclc · 18 February 2009 at 9:11AM

Credit-Crunched wrote: »

"..I know what I am talking about.. I have a friend who is an insurance underwriter @ Lloyds of London, and the PPI and unenforceable loan thing, is what they foresaw a couple of years back - and subsequently insured/re-insured themselves, anticipating a a huge amount of claims..so..if the claims start coming in, they are insured to a degree, and if they dont start to see a lot of claims"

I am sorry but you do not know what you are talking baout, it is ILLEGAL (fsa, fsma2000 and EU regulations) for banks to take insurances to pay out fines and compo relating to mis-selling.

". I'll use the useful information given to me by certain people on this website, and people like you, well, go and live a miserable existence. I dont need to justify myself to dour and moralisitic people like you!! I came on here for advice, not be judged by anyone..get a life"

Pot, kettle black? the irony of that statement really was not lost on me, made me laugh.

This thread was started back at the beginning of Jan. I was taken aback by the viciousness of some posters comments on here, so rightly/wrongly I did lose it a bit with some people, but later apologised..people

The good news for me ,is that I am a lot further on with this issue now, I have a solicitor, the FOS, the information commissioner, the Citizens Advice Bureau all on my side. I am taking the company to court, where they will have to present the document I have requested, or be held in contempt of court. The negative/positive responses received on here, helped me out either way. Just as a side note, I have come into a small amount of money recently, and I have used that to pay off credit/store cards, and settle a loan early, that I requested the agreement for, and they had, so I am not seeking to not pay any debts... thank you to both the supporters of what I am doing, and the people that don't agree.

I have un-enforceable loan - but company say they will default me, if I stop paying?

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