Bank cannot provide copy of Agreement....

Marvintheparanoidandroid

Morning all,

I got some advice over on the debt-free wannabee board as Moorcroft Debt Recovery are chasing me for a First Direct Loan I defaulted on

I have my reply from Moorcroft and would appreciate anyone's advice on what I should do next! Please bear in mind that my loan started in July 2007, 3 months after the ruling on CCA - which is annoying! Their letter in exact words:

We refer to previous correspondence and confirm that at this time our client is currently unable to prove a signed copy of the agreement relating to this account.

Please be aware however that the courts have recently held that the inability of a creditor to produce a copy of an agreement does not mean that the debt does not exist and will be written off. In the case of McGuffick v The Royal Bank of Scotland plc (2009) EWHC2386 Mr Justice Flaux ruled: "Although the Consumer Credit Act may render the agreement unenforceable, the agreement remains a valid and subsisting contract and rights and obligations under it continue to exist."

Our client confirms that they there remains an obligation to honour the original agreement and that information will continue to be supplied to the credit reference agencies. The purpose of reporting information to a credit reference agency is to promote sensible and informed decision making with regard to financial lending and the courts have held that the demanding of payment, issuing of default notices and instructing a third party to demand or seek payment does not amount to enforcement. Our client's position therefore remains that the balance of your account remains due and payable and your credit file will continue to reflect that this account is in default and will only be marked as satisfied once repayment has occurred.

We can confirm that we have placed your account on hold for 14 days and request that you make contact with our call centre on the above telephone number. We would be happy to discuss the position with you and can confirm on a without prejudice basis that it would be our aim to reach a possible discounted agreement based upon your financial circumstances and to discuss a repayment proposal that you can afford and maintain.

Sorry that was a bit long! The tone of the letter marks a definite softening of their tone, but I'm still not sure where I stand.

Is the loan enforceable? If I want to make a PPI claim, and they don't have the agreement, what would that mean? What should be my next move?

Any advice appreciated!

Thanks

kev.s

maybe a local lawyer could help you out, most give you 1st hour free. worth a try.
i'd have thought that the company would have had to keep it for the term of the loan at least.

the_insider

The debt is 'unenforceable' for the time that they cannot provide you with a copy of the agreement. Basically the McGuffick case stated that the only thing that counts as enforcing a debt is starting legal proceedings against you, for either a CCJ or attachment of earnings. They can and will still demand payments and show the default on your credit file.

Should think they'll need the agreement for a PPI claim, you never know, it might show up!

StuTheDon

What has happened to your copy of the agreement?

ILW

They could come up with a reconstituted agrrement which will generally satisfy a court as far as the loan goes. PPI is another matter.

dmg24

As you know how much you borrowed and the interest rate, I don't see why you need a bit of paper to pay it back?

Marvintheparanoidandroid

StuTheDon wrote: »

What has happened to your copy of the agreement?

I may still have it at home, I will check later.

Marvintheparanoidandroid

dmg24 wrote: »

As you know how much you borrowed and the interest rate, I don't see why you need a bit of paper to pay it back?

I don't know the interest rate or the exact loan amount off the top of my head.....i never said i did

drbesty

You took out a loan without knowing the interest rate or even how much you borrowed?

StuTheDon

Marvintheparanoidandroid wrote: »

I may still have it at home, I will check later.

My point being that you did take the loan, and have your agreement which should cover everything you need. It sounds like you are looking for a way out of paying, or having it declared unenforceable.

Even if that were to happen, and it were declared as that, your credit score would be so hosed that no mainstream lender would touch you for a long time.

My advice would be to pay back the loan, per the terms on your copy of the agreement.

Marvintheparanoidandroid

Thanks for the lovely comments, if I didn't have 30K debts and close to going bankrupt I would happily pay it back. I do not wish to simply avoid my responsibility - just trying to make a new start. I have no interest in gaining more credit as I have learnt from my mistakes. You never made mistakes?