Back Dating a Loan Agreement

chuck1es

Is it legal to backdate a Loan Agreement ! I have just had my PPI plus interest refunded but before they send me a cheque they want me to sign a 'Restructured' Loan agreement. This is basically the Original Agreement without the PPI on it, and its for the Full Amount even though there have been 16 months of payments made. They state they will 'backdate the agreement' to take into consideration the payments already made but this is 'Welcome Finance' and they are not someone I feel I can trust to do as they say. Its already taken months to get a simple reply so how can I trust now to do as they say they will !

So can I sign the New Agreement and date it for over a year ago, or is it illegal to sign these forms and 'predate' them. The paperwork will also not be signed in front of witness's or Welcome Finance staff so its all down to me !

John_Pierpoint

I wonder if there has been a change in the regulations generally or in their specific FSA rules in the last 16 months?
Perhaps it is something simple like you could "cool off" and cancel the agreement it if was dated with an August 09 date?
My bet is that you could get the same loan cheaper now - especially of you have built up a further 16 months of good credit rating?

chuck1es

I dont know about the FSA regulations, I just feel that as this company has such a bad reputation I need to be cafeful here. They owe RBS £500,000,000 and can no longer issue loans and have recently been taken off the Stock market. This company is such hard work its unreal. I have the money to pay off the loan but need to sort all this out first, I dont want to get caught up in it all again. Just want shot of the whole thing.

John_Pierpoint

http://www.guardian.co.uk/business/2009/mar/10/loans-cattles-directors-covenants
http://www.guardian.co.uk/business/cattles

I see what you mean.

I think I would take on a sporting bet that this organisation will be with us no longer in say 4 months time, in its present form.

However they do own assets in the form of expensive loans and they need to keep you "hooked"
Their own web site suggests that they are still issuing loans.

I don't really know what to suggest.
I once had a house insurance policy and found myself sold to another dodgy company - all I knew about it was finding a different name against the monthly direct debit on my monthly bank statement. The new company was IMHO dodgy.
So I clawed back two direct debits (bank tried to say I could not) and wrote a stiff letter telling the dodgy company where to get off.
Within two months the dodgy company had gone belly up.

If your loan company dies, you might be able to tear up the agreement - I don't know; but I would think your loan would be up for renegotiation.

In the mean time you risk becoming an unsecured creditor for the PPI refund.

Is this expensive loan secured against your property?

How much money are we talking about.?

chuck1es

I am trying to get them to commit something in writing to clear this up. If I do sign the Restructured agreement I will only do so if they provide details telling me what date to put on it. Such a simple process has been complicated for no reason, this is why they owe millions, because you cant pay them off even when you have the money to do so.

Hippocampus

I am in a similar situation. I sent them a letter complaining about the PPI on all the loans I ever had and they rolled over without a fight and offered the same deal as the OP. Except they "forgot" about the other 6 loans.

Bearing in mind these date back over 6 years, with interest at their contractual rate, compounded, they now owe me probably tens of thousands of pounds.

So I am not signing their dodgy paperwork, and I have cancelled my ditrect debit. As far as I am concerned, they have admitted in writing that my PPI was mis-sold, have agreed over the phone to repay me, and so until they come up with a figure, my account is in dispute.

Therefore I have cancelled my direct debit, rightly or wrongly, until they get their s h 1 t together. They can rack up as much as they want in arrears interest, because I'm certain sure that their debt to ME will be climbing even faster.

I don't want to be left at the bottom of a very high mountain of creditors all scrabbling for their tuppence in the pound.