Black Horse Offshore settlement figures

sc280672

I'll try and keep the story short.....I received last Wednesday what I believe to be a very unreasonable settlement figure on a loan which I have with Black Horse. I wrote back stating I wasn't happy with the figure and enclosed a cheque for £600 (they will still have made £1500 interest) less than what they quoted and asked if they would be happy with that. Got an email from them 2 days later saying they couldn't accept, the lowest settlement they would take was just £50 less than what they originally quoted and if I couldn't afford the remainder they would work out a reduced repayment to settle it.

I emailed back and said I was still very unhappy and I wanted them to review it again. Email back saying he was out of the office til 24th Nov and he'd review it again. My settlement figure only stands til the 25th.

Checked my bank account today and even though no arrangement has been agreed between us they have banked the cheque I enclosed with my original letter!!!! I have just emailed to say due to the fact they have banked my cheque I take it my offer has been accepted and the matter is now closed, it's been a pleasure doing business with you.

Does anyone have any idea where I stand on this? Many thanks.

Rafter

Your loan resettlement figure will be governed by the credit agreement you initially signed.

The banking of the cheque in no way implies acceptance of the terms. If you think they have made an error in the calculation, ask them for a statement calculating the settlement figure and demonstrating how it is in accordance with the credit agreement you initially signed.

Without knowing how much you borrowed, what the interest rate was, term, settlement penalty, any insurance etc we cannot say whether £1,500 in interest is reasonable or not. Remember that the £1500 interest is not profit for Black Horse. They will have to pay the savers or other banks who lend them the money too as well as cover losses for those customers who will never pay their loans back.

R.

standupguy

I am not sure what you mean by an offshore settlement figure?

But, If you have a regulated agreement under uk law then the settlement calculation is laid down for Finance companies and banks to strictly follow.

If you have an unregulated agreement under uk law then the lender can load extra interest on to the settlement figure if you settle early.

If you had told them to only bank the cheque as full and final settlement then you may have a case?

As you gave them the cheque on the basis "they would be happy with that" - it may leave matters a bit vague.

They may have banked it just as a payment towards your account or else as a part settlement subject to negotiating a final outcome?

You should have the option to ask for a refund of the cheque if they have not accepted it as a final settlement.

sc280672

Black Horse Offshore is the name of the company.

I stated in my orignal letter that I was unhappy with the figure they quoted. The loan has 16 months left to run and the settlement figure plus what I've already paid was only £150 less than what I would have paid for the full term of the loan. To be honest I was just trying it on by sending them a cheque for £600 less than what they asked for as I know of people who've done this and succeeded. I stated in the letter that I enclosed a cheque for a certain amount and would they accept this as settlement. I did not agree to this as being part settlement, in fact I agreed to nothing until they'd reviewed the loan again. Surely it's not right nor legal for them to bank this cheque without my agreement when the matter has not been cleared up? They shouldn't have banked the cheque unless they agreed to my offer?

ILW

You sent them a cheque and they banked, bears no relevence to agreeing a settlement figure. Also bear in mind that if they do accept partial settlement, this will probably go on your credit file and screw up your rating.

sc280672

Sorry, but I don't understand why it's not wrong for them to bank the cheque when nothing had been agreed by either side. If they weren't accepting my offer then surely they should return the cheque and not bank it? I made no mention in my letter about a partial settlement should they not accept my offer and I agreed to nothing until they'd reviewed the matter agian. Perhaps you could clarify why what they've done isn't wrong.

Why would a partial settlement screw up my rating?

ILW

sc280672 wrote: »

Sorry, but I don't understand why it's not wrong for them to bank the cheque when nothing had been agreed by either side. If they weren't accepting my offer then surely they should return the cheque and not bank it? I made no mention in my letter about a partial settlement should they not accept my offer and I agreed to nothing until they'd reviewed the matter agian. Perhaps you could clarify why what they've done isn't wrong.

Why would a partial settlement screw up my rating?

The reason they have done nothing wrong in banking the cheque is that you sent them the cheque without any anygreement being made. If they had sent you a letter saying that they would accept £600 as full and final settlement then all would have been fine. You can go on sending money to them but unless they agree to a figure it will just credit your account.
As far a partial settlement goes, many lenders assume that you were either unable or unwilling to pay off you debts when they see this on your file.