leagality of loan

bustadog

Hi all,

not sure where to post this so appols if it should be somewhere else.

Around two years ago, following the loss of a job I fell into financial difficulties and could no longer meet my financial obligations. This lead to a bout of depression, so to raise my spirits I took a job in Switzerland to allow me to spend the winter snowboarding, now, although this certainly aided a swift recovery from the depression it was not so helpful to my financial situation. Following a discussion with my banks account manager, it was suggested I should transfer the balance from my egg card to a LloydsTSB card and take advantage of six months interest free and also take an unsecured loan of £23k to allow me to make monthly repayments for current debt (2 mortgages, car loan). I advised the bank my then current wage in Switzerland was only £200 per week and I did not feel I could afford such a loan, although my assett value was more than my total debt. the bank were not concerned by this and were confident of a successful application.

Since then I have been restored to full health and have just sold one of my properties which will allow me to pay off all of my current debt with the exception of the mortgage for the property in which I currently live.

I signed all documents for the loan whilst in Switzerland, the account manager from the bank was aware of this and said although it was against the law she would fax the documents for me to sign, which I did and the loan was processed.

So my questions are;

Is the contract for the loan still leagally binding as I was not in the UK when I signed for it ?

Was I mis-sold the credit as I could not afford the repayments, and borrowed more money to make the repayments ?

Do I still have to repay this loan ?


Sorry for all the history to this, I thought it may be relavent...

Hope you can help...

bustadog

anyone like to comment ?

skanger

Bustadog

What is your aim? the way I read this is that you are looking for a loop hole to escape from having to repay the debt? - ignoring the morals, I think if you look at the agreement you signed, it will make no difference where you where when you signed it, I suspect you could have been on the moon, it will clearly state that UK Law applies.

I suspect that faxing loan documents around the world is not strickly llyods policy, but legal? - I bet you it is.

bustadog

Hi Skanger

thanks for replying.

My aim is to establish if the contract is still leagaly binding if signed outside of the UK, as it is clearly stated on the documents that they must be signed in the UK. Ergo if they're not signed in the UK that must be a breach of the terms of the contract thus making it null and void...maybe

With regards to the moral issue, Lloyds don't seem to have any morals so why should I (when dealing with Lloyds)

Any thoughts of how I may be able to clarify this ?

Thanks again for the reply.

ninky_2

My OH took out a loan with Lloyd's TSB about 4 years ago (before we met). They didn't carry out any checks on his ability to pay it back. I'd been paying the loan back as OH had no income. Following my complaint they agreed to repay all interest and PPI, to freeze the interest and accept a much lower monthly payment.

With regards to the moral issue. Some people have suggested we should have argued to get the loan written off - but I think you should pay back what you've had - just at an amount that you can afford and without the banks profitting in the form of interest on loans that should never have been given.

Best of luck with your complaint.

grumbler

bustadog wrote:

With regards to the moral issue, Lloyds don't seem to have any morals so why should I (when dealing with Lloyds)

Why didn't you think about legalities and moral issues while relaxing in Switzerland and taking money to meet repayments instead of working hard or selling assets (car, house) that you borrowed money for?

Rafter

Lloyds may have been in breach of the banking code too but not establishing whether you could afford to make repayments.

However, from what you have said so far, you did manage to make repayments and are in a position to repay now.

I can't see that you have a legal leg to stand on here and as grumbler says, why shouldn't you repay money you have borrowed in the past. It doesn't seem like you were forced or coerced into signing!

R.