Defective Loan Facility Agreement

sanjtheman

Hi All

I have a loan facility agreement from mortgage express which is defective in two major respects

1. Interest rate in the agreement is defined "as per table 1 below". Problem is there is a table but is not labelled table 1

2. Interest rate in table says rate is base + 1/50% but i have been charged base + 1.5%. Base + 1/50% is 0.02% according to my calculations

Mortgage Express is arguing loan agreement was wrong due to human error but I have another agreement a year earlier with same "mistake". Also they argue 1/50% is 2%

Can any legal expert or lawyer or anyone else with a similar problem advise me whether I can set aside the loan agreement

Thanks

Sanjay

opinions4u

Can any legal expert or lawyer ... advise me whether I can set aside the loan agreement

Im sure they will advise you, assuming you pay their appropriate fee.

Why don't you pursue your lender's complaints' procedure and escalate it the the Ombudsman. Much cheaper that way.

Anybody else feel a plug for www.dodgycreditagreementclaimscompany.com coming?

sanjtheman

I have already gone through complaints procedure and their final response is that

1. It was human error
2. Base + 1/50% is equal to Base + 2% not base +0.02%

I will go to ombudsman as their argument that i was mistake doesnt stand up cos I have another agreement a year earlier with same "mistake"

I have looked for case law to see if anyone challenged a defective loan agreement but can't find any. Just maybe thought someone else might have encountered this before.

Would be grateful for any advice - so I can pursue to ombudsman

PS any other mortgage express borrowers please check your loan agreements

nw_man

Did you apply for the loan ?

Did you use the monies for whatever ?

Were you happy you got the loan ?

Pay it back .Everyone else does.

luckyfool

I very much doubt that Mortgage Express are arguing that base plus 1/50% is equal to base plus 2%, I suspect they are arguing that it is equal to base plus 1.50%, i.e. a / is used instead of a . by human error . . . giving a current pay rate of 2%.

The idea that you think you can set aside the loan agreement due to this is delusional/pathetic. Good luck with that.

sanjtheman

Yes I got the loan

Yes I used it to purchase a property

Yes I am paying it back

What everyone else has no relevance to me

If you can't say anything constructive - don't feel you have to comment

Point I raised was that rate they are charging me in practice does not agree with the legal document and whether I have some redress.

sanjtheman

Quote from Mortgage Expresss Final Response Letter

"1/50% is not 0.02% it is 2% i.e. 1/50 x 100"

luckyfool

Is it standard practice in legal mortgage documents to describe interest rates using algebraic notations . . . i.e. your interest rate isnt base plus 2% its base plus 100/50% (100 divided by 50). The idea that any reasonable average person with any common sense would have read that mortgage documentation and felt that no of course it isnt a mistake meant to show base plus 1.50%, what they actually meant was 1 divided by 50 and my rate is base plus 0.02%. This claims/something for nothing culture of people trying to take the mick really gets on my nerves.

sanjtheman

If its any consolation lucky - financial advisors who think they know contract law gets on my nerves too

Anyway have got the answer I wanted from

"lender gives confusing and unclear information about interest rate" FSO

Completely contrary to your advice. Kumon runs maths classes near me if you are interested

dunstonh

Martin ought to create a section called moneystealingexpert for threads like these.

luckyfool

sanjtheman wrote: »

If its any consolation lucky - financial advisors who think they know contract law gets on my nerves too

Anyway have got the answer I wanted from

"lender gives confusing and unclear information about interest rate" FSO

Completely contrary to your advice. Kumon runs maths classes near me if you are interested

I'd say good luck with your complaint/claim, but I wouldn't mean it so I won't. I sincerely hope you get laughed at in court or by the Financial Ombudsman Service.