Northen Rock can't find original loan aggreement

LostBoy

Hi,
I'm looking for some guidance with my NR loan - I sold my property last April and there was a £27K deficit in equity - so i took out an unsecured loan with NR for this ammount. the original paymeyt was approx £400 per month over 23 years. - with an interest rate of approx 16%. - resulting in them receiving over £100K back on an original loan of £27K over the period.
I have recently posted my financial statement to them and they have advised they will not stop the interest unless a court order is issued. - the pro-rata ammount I can afford to pay from my financial statement is £128 per month. - which means the outstanding balance on the loan is actually increasing by over £250 per month:mad:

Anyway, today I phoned them and asked them to send me a copy of the original signed Loan Aggrement. However, they have advised verbally that on initial investigation they cannot find this document. - what shoud I do??

regards
Lostboy.

boredofbeingathome

It would probably be better to write and formally request this. Then i am sure that if you post up on the CCA update thread someone there will advise you.
It does sound like sharp practise on their part, but have heard worse in the past.

LostBoy

boredofbeingathome wrote: »

It would probably be better to write and formally request this. Then i am sure that if you post up on the CCA update thread someone there will advise you.
It does sound like sharp practise on their part, but have heard worse in the past.

thanks. can you tell me, what is the CCA update thread?:o

pepe2008

Hi Lostboy.
You need to Formally request the Original Consumer Credit Agreement.
Download the letter template from www.nationaldebtline.co.uk and follow their instructions. You will need a Postal Order for £1 to cover the Statutory Fee. Send it Recorded Delivery and then go online to www.postoffice.co.uk to check on delivery.
This gives the 14 days from receipt to come up with the Agreement. Until they do, they are unable to carry out any enforcement AT ALL.

If they are unable to provide the Agreement the Loan becomes 'unenforceable' it does NOT get written off....unless they say so.

Good luck with it, keep us posted, or PM for anything.

LostBoy

thanks Pepe2008. - im onto it now.
will let you know.
Incidentally, NR have advised that my solicitor may have a copy of the original agreement. is this the case? and should I pursue that ?
regards

RAS

Hi

The consumer credit act only applies to loans under the value £25K.

However, you need to see the original agreement to see what conditions were attached. I suggest you talk to a debt charities urgently as well.

LostBoy

Thanks RAS,

I have a phone appt with PayPlan for Friday. I have tried to negotiate independently with my creditors. however, there are 1 or 2 who just wont freeze the interest . will the Payplan have any influence ? and can they apply pressure to my creditors to stop the interest to allow me to start reducing my debt???

RAS

freezing interest is completely optional.

Have you thought about hitting those who do dot with a CCA request, if appropriate, or reclaim charges or PPI?

LostBoy

No haven't considered a CCA request for those creditors. - 2 credit cards (£10K each), 2 overdrafts (£7K each) and a personal loan (£13K outstanding)all from the same lender. - do you think it is worth it?

Charges and interest have been acruing since I first made them aware of my difficulties nearly 6 months ago. - can I claim these charges back? - I have been making a reduced payment each month on each account.

also, not sure what PPI is??

Should I just wait to see what payplan have to say on Friday? - although when I called Payplan today to arrange the appt they advised that CCA was a legal issue and not somehting they could advise on.
regards

10past6

O/D are not covered under CCA request.

DO NOT INFORM PAYPLAN OF ANY ISSUES YOU ARE PURSUING WITH CREDITORS / DCAs

PPI = it's a loan insurance.

LostBoy

thanks for that.:T
do you know if I could walk into a branch and request that they FAX a copy of my letter of request for CCA to the appropriate dept? and could I pay the statutory £1 fee over the counter?
regards