Secured Loan... LEGAL ??

PSPman

started loan in Jan... section in agreement said first payment one month from start of loan

Within the week they took a payment

We canceled the DD for Feb and resumed the payments in March

sent a letter to explain why this was done.... no reply

now found out they canceled the agreement for Jan and started a new one (same T&C ) in Feb

Effectively taking back the payment we canceled in Feb

So question is.... is the "new" agreement they started in Feb without our knowledge / consent / signatures, under a new agreement number, legal

And how to precede

PNPSUKNET

why did you breach febs?

PSPman

Breach ??

The loan agreement said "the first payment will be one month from start of loan" being 15th Feb they took first monies around 20th Jan
I therefore canceled the DD for 15th Feb (first payment) because they had already taken it

I did not "breach" anything.... they took monies three weeks before agreement

Without informing me they canceled the agreement and "restarted" to get the extra month back which was outside the agreement and in doing so changed it to a new agreement which they cannot produce a signed copy of (because it was "restarted" without consent or knowledge and without signature
The conclusion being they tried to do some sneaky accounting and got caught !

chalkie99

So you have returned the loan amount to the company then? :rolleyes:

ILW

If you are not happy with the service, cancel the loan, repay the money and take your business elsewhere.

mad_bad_spender

there are rules regarding direct debits and if the payment was collected too early you could have had this returned by bank who would then retreive the funds from loan company.

i am curious why you didnt just call/visit the loan company and discuss the situation with them instead of cancelling dd. i would also say that i dont think you will be able to get out of paying loan just due to this..

however they should not have restarted the dd without your consent. they cant just decide to restart this however i think you have left it too late to do anything about this as you have been paying this for months now

have they admitted they have new agreement and agreement number with you? if not how are you coming to this conclusion?

PSPman

The point is THEY canceled the agreement I had with them without my knowledge / consent

Therefore the agreement they had with me is finished

If they start a new agreement in my name without my knowledge / consent / signature they are being unlawful not me. The bonus is once an agreement is canceled it is no longer enforceable. As to pay back the loan..... why.... on moral grounds ?? To the company that abused their system to take money from me that was not theirs to take ??

If you lent ten pounds and found out the person you lent it from stole five pounds from you whilst handing the ten pounds to you would you pay it back when he cannot find the IOU you signed ??

I have proof of their unlawful behaviour.... it may not be moral to some but I have not broken any law...... I have begged for them to take me to court (last payment was ten months ago)...... any wonder as to why the will not go to court

mad_bad_spender

sorry just need to clear a few things up here.. are you saying you havent paid for the loan since jan/feb? original post was not clear on that point..

also have they admitted to you that they cancelled the original loan agreement and that this is a new agreement?

ILW

PSPman wrote: »

The point is THEY canceled the agreement I had with them without my knowledge / consent

Therefore the agreement they had with me is finished

If they start a new agreement in my name without my knowledge / consent / signature they are being unlawful not me. The bonus is once an agreement is canceled it is no longer enforceable. As to pay back the loan..... why.... on moral grounds ?? To the company that abused their system to take money from me that was not theirs to take ??

If you lent ten pounds and found out the person you lent it from stole five pounds from you whilst handing the ten pounds to you would you pay it back when he cannot find the IOU you signed ??

I have proof of their unlawful behaviour.... it may not be moral to some but I have not broken any law...... I have begged for them to take me to court (last payment was ten months ago)...... any wonder as to why the will not go to court

What evidence do you have that the original loan agreement has been cancelled?

PSPman

Mad Bad

I sent for a SAR and CCA in May. They excluded all knowledge of the restart of the agreement in all the transcripts etc.... and did not supply me with a copy of the current agreement (which at this point makes it unenforceable because they do not have a signed agreement). The signed agreement they have just supplied this week is the canceled one in a last ditch attempt to persuade me that this can be restarted legally under a different number etc... (if this is the case they could easily "restart" six months down the line and gain six months payment, but as was the case it was for one month)

ILW

If I am above reproach why repay and go else where ?? I know this companies ethics and they would a pound of flesh from a dying man

PSPman

Evidence is a letter from the company saying we canceled the agreement set up in Jan and "restarted" it in Feb

Excuse being if it is the same T&C they dont have to inform us .... even though the loan was for XX months in Jan and reset to XX in Feb claiming the month back