70k loan with no paperwork

K-Fit

Hi. was called into my Nat West bank a short while ago for a 'meeting'. it transpires that they do not have any paperwork or indeed any info relating to a 70k loan i took out in Jan 08. I applied for a Mortgage so i could purchase a commercial property. the whole application was a complete farce and took 6 months to arrange. what has in fact happened is i was given a 'small business loan' instead. there is no paperwork relating to this loan at all.

Due to the incompetence of Nat West i decided to explore the 'Unenforceable loan' possibilites, and i duly sent of my £1 asking for a copy of my loan agreement. the first 12 days passed, and so did the next 2 months without hearing anything. i followed this up with the standard letter stating that if they could not find my agreement then i would not be paying back any monies that are not related to any agreement etc etc...

Today i recieved a letter saying ' as your loan facility was drawn down on 3rd Jan 2008 it is not covered by the changes to the CCA which came into being on the 6th April 2008' it goes on to say 'Accordingly the bank is looking to receive your written proposals for the repayment of the debt. we will defer taking any further action for a further 14 days from the date of this letter to give you a final opportunity to work with the bank however i must advise you that we have not agreed a suitable way forward by 3rd september then the bank will have no option but to commence default proceedings'

so to summarise

I have stopped paying
there is no loan agreement
there is no paperwork at all

Do i just bite the bullet and start paying again, even though there is no paperwork at all? or do i continue to expose their hap hazzard record keeping and let them take me to court?

Any advice would be welcome.

J

ILW

I believe the unenforceabilty rules only apply to loans taken out pre april 2007.

dgl1001

K-Fit wrote: »

Hi. was called into my Nat West bank a short while ago for a 'meeting'. it transpires that they do not have any paperwork or indeed any info relating to a 70k loan i took out in Jan 08. I applied for a Mortgage so i could purchase a commercial property. the whole application was a complete farce and took 6 months to arrange. what has in fact happened is i was given a 'small business loan' instead. there is no paperwork relating to this loan at all.

Due to the incompetence of Nat West i decided to explore the 'Unenforceable loan' possibilites, and i duly sent of my £1 asking for a copy of my loan agreement. the first 12 days passed, and so did the next 2 months without hearing anything. i followed this up with the standard letter stating that if they could not find my agreement then i would not be paying back any monies that are not related to any agreement etc etc...

Today i recieved a letter saying ' as your loan facility was drawn down on 3rd Jan 2008 it is not covered by the changes to the CCA which came into being on the 6th April 2008' it goes on to say 'Accordingly the bank is looking to receive your written proposals for the repayment of the debt. we will defer taking any further action for a further 14 days from the date of this letter to give you a final opportunity to work with the bank however i must advise you that we have not agreed a suitable way forward by 3rd september then the bank will have no option but to commence default proceedings'

so to summarise

I have stopped paying
there is no loan agreement
there is no paperwork at all

Do i just bite the bullet and start paying again, even though there is no paperwork at all? or do i continue to expose their hap hazzard record keeping and let them take me to court?

Any advice would be welcome.

J

i can't quite believe what im reading. You took out a £70k loan and now you are trying to rip the bank off and forgo any responsibility. I hope they ask for immediate repayment

PNPSUKNET

what would happen if your customer pulled it on you?

K-Fit

I knew someone would respond with a comment of that ilk! i am not shirking any responsibility, however the legality of any agreement can be brought into question at any time. cases like this in fact highlight the problem helping institutions to get their act together. so before you make sweeping comments read my post and see where the bank has actually shirked their responsibilities in processing a 70 loan!

Btw what would they achieve by asking for immediate repayment? i take it you do not work in any managerial capacity....

ILW

Why did you not query it when £70k turned up in your bank account?

K-Fit

because i applied for a 70 mortage as stated. i am not questioning the loan amount, i am questioning the loan procedures and legal processes that were not followed....

ILW

Did you not sign anything at all?

foxwales

As your loan was taken out in 2008 the bank can enforce it regardless of whether there is a correctly signed agreement in existence or not. They just have to show that you have borrowed the money.

If you fail to meet the repayment requirements of the loan, the bank is within it's right to request that you pay the WHOLE balance; so it is in your interest to negotiate repayment terms.

Ask them for written clarification as to the interest rate, term of repayment and repayment amount (if you don't have this) as if they have no documentation regarding these, then it might be possible for you to negotiate a better interest rate and better repayment terms in light of their error.

But unfortunately, you are responsible for this money; and if you fail to pay, the bank is well within its right to enforce this through the courts.

pippitypip_2

Ok, so ignoring all the 'having a go' comments - I know enforceability as discussed in reference to most posts is about debts pre 2007, but how can they enforce a 2008 loan if they can't prove you took it out, or prove what agreements they made with you, i.e. length of loan term, interest rate, etc etc ???????

I'm no lawyer but I don't get how they can enforce this?

Plus as a separate issue, if there's no agreement, how do YOU know what payments to make and how long you'll be making them for and how much it's costing you? For your own protection you should have something in writing - that's the whole point of the agreement and provision of the loan. As a regulated body they MUST provide you with this, otherwise surely you should report them??????

Shocking! Plus I only wish someone would hand me 70k I'd wipe out my debts and be a "normal" person again.

pippitypip

ILW

pippitypip wrote: »

Ok, so ignoring all the 'having a go' comments - I know enforceability as discussed in reference to most posts is about debts pre 2007, but how can they enforce a 2008 loan if they can't prove you took it out, or prove what agreements they made with you, i.e. length of loan term, interest rate, etc etc ???????

I'm no lawyer but I don't get how they can enforce this?

Plus as a separate issue, if there's no agreement, how do YOU know what payments to make and how long you'll be making them for and how much it's costing you? For your own protection you should have something in writing - that's the whole point of the agreement and provision of the loan. As a regulated body they MUST provide you with this, otherwise surely you should report them??????

Shocking! Plus I only wish someone would hand me 70k I'd wipe out my debts and be a "normal" person again.

pippitypip

As said before they may have difficulty enforcing interest etc, but they are within their rights to demand immediate repayment of the capital. They would not have any difficulty proving the money was taken.