Unenforceable Loan

lordcharles2001

Hello there, I am new to this site. Can anyone help? I took out a secured loan in 2005 for £20,000. I have been paying since then but my balance is still £23,579.00. I have paid debit free uk (don't know if you have heard of them £295) to get the loan cleared off. Only for me to find out northing was done and now they have gone into administration. I requested for my loan agreement last year and found out (Nemo Personal Finance) that the agreement had both my signature on them for myself and lender. When they sent the agreement to me, they acrossed out my signature and then sign outside the box. This loan has been killing me cause my wife is due, we live in a 1 bedroom flat with my daughter and hoping to move but with the secured loan it's difficult to do that. can anyone help?:mad:

Tixy

You need to read the thread below and seek advice on there - http://forums.moneysavingexpert.com/showthread.html?t=2305463

However I think that with a secured loan it is pretty unlikely that you will find it is unenforceable. But never-in-doubt is the person to advise, so ask him on that thread.

Beast

Why would it be unenforceable? Because you don't fancy paying it any more?

ILW

Beast wrote: »

Why would it be unenforceable? Because you don't fancy paying it any more?

I believe the OP thinks it should be unenforceable because his wife is pregnant and they live in a one bed flat. Them banks do have a lot to answer for.

R0bert_Sterling

lordcharles2001 wrote: »

I took out a secured loan in 2005 for £20,000. I have been paying since then but my balance is still £23,579.00.

I don't understand why people get so hung up over this....

You didn't borrow £20,000 in real terms.

You asked for £20k of the banks money in exchange for a much greater sum of your own money, nearer £30k probably..... what was the apr??

The Loan agreement will say "Total Repayable...£xx,xxx.xx" Let say £28,500 for example.

The day you took the £20k to spend instantly to relieve all that stress or whatever it was for, you were £28,500 in debt... NOT £20,000

As you start making payments you are paying off a LOT in interest, and only a small amount of capital.

At the end of the loan period, you will be paying huge chunks of capital and hardly any interest.

In the example above, I don't know how long you have to go to work to earn £8,500, but you have agreed to go to work every day for that period and not get paid AT ALL.
You agreed to give it all away for nothing, in return for that lump you spent at the start.

People seem to think they borrow £20,000 and the first £200 payment should mean they only owe £19,800...... Crazy.

Wutang_2

Beast wrote: »

Why would it be unenforceable? Because you don't fancy paying it any more?

No one ever enquires if a loan is unenforcable when they can easily pay it off and also understand that interest is usually added to a loan amount...! So strange.

Can they just create a whole forum for these delusional folk as this is just getting repetitive?? (And its NOTHING to do with being 'money saving')

lordcharles2001

ILW wrote: »

I believe the OP thinks it should be unenforceable because his wife is pregnant and they live in a one bed flat. Them banks do have a lot to answer for.

We thank God for internet don't you think? If only you.....................

WTTM

lordcharles2001 wrote: »

We thank God for internet don't you think? If only you.....................

Wind yer neck in and pay the loan back sponger.


MOMENT

ILW

lordcharles2001 wrote: »

We thank God for internet don't you think? If only you.....................

Sorry ???????

Clive_Woody

lordcharles2001 wrote: »

We thank God for internet don't you think? If only you.....................

Are those religious folk now claiming god invented the internet too? That could throw up some interesting discussion.

WTTM

lordcharles2001 wrote: »

We thank God for internet don't you think? If only you.....................

Looks like you thank god for loans as well, especially the new fangled fancy UNenforcable ones.


MOMENT