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

Credit-Crunched

"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."

financial reserve yes, insurance policy no.

Two very different financial products

dunstonh

Credit-Crunched wrote: »

"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."

financial reserve yes, insurance policy no.

Two very different financial products

So why does the FSA insist on insurance to be taken out to cover redress payments in mis-sale cases?

clarabella23

Hi there, understand both sides of the argument here, puzzler for you
Just as a thought, if you are feeling guilty about not paying it, why not set it up as your last debt to pay off? get rid of everything else you owe first, then put some money aside for this, offering them a f&f if and when you have the funds. Not everyone would agree with me, but I think I would worry about my credit record, and wouldn't like this still on if i'd gone to the trouble of getting all other debt cleared.

lclclclc

agreed - this has become more of an issue, in terms of holding them accountable for their non-adherence to data protection, money laundering ( ie keeping docs for certain amount of years ), and failure to comply with a simple request for a copy of a document, we are all entitled to.

~Brock~

Seeing as this thread has reared its ugly head again, and it appears to be about the usual moral debate regarding worming out of loans granted in good faith, can I ask posters what their stance would be in the following situation.......

The largest tennant in the World Trade Centre at the time of the 9/11 attacks was Morgan Stanley. Due to a well rehearsed fire drill and the sheer good fortune of having their offices below where the planes hit, thankfully they only lost 6 of their 2700 employees. Their offices were, obviously, completely destroyed.

Now imagine that had happened in the UK instead of the USA, and along with their offices went the destruction of all the original copies of their credit agreements.

Imagine that you have got a loan/credit card with that company. They can no longer produce the original agreement. To the people who are currently looking to avoid payment of their obligations via this loophole can I please ask what you would do in this situation. Please also give the reason for your answer.

lclclclc

That is circumstances beyond their control, unfair to compare that tragic event, against this one? What I have made a point about, is a company being absolutely rubbish at keeping records - we've all seen what a shambles the bank is at the moment, so it doesn't surprise me that they cannot locate a simple agreement, they have no concept of data protection and their duty towards their clients.

I understand the point that you are trying to make, but its not valid for this particular argument, and god forbid, anything like that ever happens ever again..

~Brock~

lclclclc wrote: »

That is circumstances beyond their control, unfair to compare that tragic event, against this one? What I have made a point about, is a company being absolutely rubbish at keeping records - we've all seen what a shambles the bank is at the moment, so it doesn't surprise me that they cannot locate a simple agreement, they have no concept of data protection and their duty towards their clients.

I understand the point that you are trying to make, but its not valid for this particular argument, and god forbid, anything like that ever happens ever again..

Are you saying that you wouldn't claim then? Your legal argument would be no different to your current one.

In your current sitation, whilst obviously nothing like the sitation I described above, do you know the exact reason why your agreement can't be traced, as opposed to a blanket view about banks in general?

lclclclc

I don't know the exact reason why it cant be traced.. I heard from someone who works in the group, that they have in fact destroyed some records, but of course I cannot substantiate that. I am saying that I wouldn't claim, on a humane level.I wouldn't want to gain from a tragedy such as that,.so it's not the same argument at all, but I understand where you are coming from,thank you.

anselld

lclclclc wrote: »

entitled to your opinion, but people like you, just make me more determined!!

Fighting for a better deal, against unfair terms, unfair PPI, extorionate interest rates etc all fair enough. The point was that people should at least pay back what they have borrowed (as should Banks in the case of deposits of course)

tartanterra

Fascinating stuff.:D

Whilst I can see both sides of the issue, and frankly, find the banks attitude to data protection appalling:eek: , I can't understand the OP's attitude to some of the other posters.

If you start a post on MSE's forums, you should be prepared for opinion that differs from your own. Many people, (including myself!), are going to see this, not just as a financial, but as a moral issue. It's not really comparable to misselling, as your not complaining that the product was inappropriate, what your alluding to is; should you be able to avoid repayment due to the bank's poor administration?:D
Well that's a fair argument, but the moral angle is still valid. If lots of customers follow this route, and win their cases, the banks will have to recoup their money somewhere else. This means, that somewhere down the line, someone else will pay for the banks' mistake (sound familiar!), and you can bet your bottom dollar it won't be the shareholders.:rolleyes:

Good luck, but please be aware that any gain you make, may well result in someone else's loss!:cool: