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averagemummy
Posts: 119 Forumite
in Loans
Hi, wondering if anyone can advise please:
My OH and I had a rather large business loan. When the business closed we took the loan on personally as it was secured against the house.
As would could personally only pay about two thirds of the supposed monthly payment we tried to make an agreement with the bank. We had to fill in statements of means etc etc and eventually agreed to pay £500 per month. However the bank have been applying so much pressure on us to settle this load completely we have eventually sold our house to pay back our house mortgage and as much of the loan as possible.
With the sale of the house going through at the momment this will reduce the loan by about two thirds again and leave us with approx £16000 to pay.
All this is ok with us, we accept we are liable for this and we will pay this back. We are not trying to get out of paying.
However the problem we have is that the bank have not issued us with a single statement since we started paying this personally - which is just over a year. We know we are paying interest - they have admitted this but have not told us how much.
All the figures above are our own estimates which we keep advising them of, but could obviously change depending on the interest owed!
The only person in this multi national bank that we seem able to contact is a chap in some business debt department in India! We keep emailing him but he rarely comes back to us and his responses are at best vague. We asked for someone in the UK that we could correspond with, even if we can just walk in and talk to someone in the local branch, but he has said there is no one in the UK to deal with this.
Is there any kind of law or something we can quote to force them to start giving us statements and more information etc?
I know they are ok with us selling the house as the solicitor has told me that they are not blocking the sale and we can go ahead.
Thank you - this is a mess i know
My OH and I had a rather large business loan. When the business closed we took the loan on personally as it was secured against the house.
As would could personally only pay about two thirds of the supposed monthly payment we tried to make an agreement with the bank. We had to fill in statements of means etc etc and eventually agreed to pay £500 per month. However the bank have been applying so much pressure on us to settle this load completely we have eventually sold our house to pay back our house mortgage and as much of the loan as possible.
With the sale of the house going through at the momment this will reduce the loan by about two thirds again and leave us with approx £16000 to pay.
All this is ok with us, we accept we are liable for this and we will pay this back. We are not trying to get out of paying.
However the problem we have is that the bank have not issued us with a single statement since we started paying this personally - which is just over a year. We know we are paying interest - they have admitted this but have not told us how much.
All the figures above are our own estimates which we keep advising them of, but could obviously change depending on the interest owed!
The only person in this multi national bank that we seem able to contact is a chap in some business debt department in India! We keep emailing him but he rarely comes back to us and his responses are at best vague. We asked for someone in the UK that we could correspond with, even if we can just walk in and talk to someone in the local branch, but he has said there is no one in the UK to deal with this.
Is there any kind of law or something we can quote to force them to start giving us statements and more information etc?
I know they are ok with us selling the house as the solicitor has told me that they are not blocking the sale and we can go ahead.
Thank you - this is a mess i know
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Comments
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I would ask for a SAR Subject Access Request to get all the information. You will need to write a letter to the Creditor and indeed they may charge up to £10 but you will have all the info, ok its a charge but it's a good way of getting a clear picture. I think with any loan by law you get a yearly statement.3 Children - 2004 :heart2: 2014 :heart2: 2017 :heart2:
Happily Married since 20160 -
Thank you - will write a letter then (SAR) . Don't know who to address it though - maybe I will take a letter into the local branch with £10 and see if they can forward it to the relevant dept0
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Under the Consumer Credit Act for personal finance they would only be required to provide a statement annually (though can provide them more often if they want to).
That said, from a number of things you mention it would most likely be an unregulated loan
Is it still listed as a commercial loan? When you started paying it off as private individuals did you effectively take out a new loan to pay off the old and switch it to your names or simply switch the name of the debtor? If its just been switched then how much was the original loan for and when was it taken out. If a new loan was taken out, how much was the new loan for?0 -
Thank you for looking at this. The circumstances we started paying this personally were very bizarre even to us.
The loan has not been put into our names - it is still under the company name. It doesn't even seem to have been transferred - as all we have been told to do is pay £500 cash into the (old) business bank account using the paying in book that used to belong to the company.
We queried this several times, as HMRC came in to take a certain amount of stock etc as well as there was money owed to them as well. My OH worried about that as he thought he had been told by HMRC he could not touch the bank account as HMRC had first claim on it - but not sure how accurate that is. We have emails to prove that we have done what we were told by the bank
We just are a bit uneasy about the whole thing - it doesn't really seem to make sense. Will be glad when it's all paid off.
Thanks0 -
A commercial loan is unregulated from a CCA point of view and so things like frequency of statements are not mandatory and down to individual negotiations - companies are considered big enough to look after themselves rather than needing statutory rights protection.
You say the business has "closed".... do you mean it simply has ceased trading or did it go through insolvency processes? If it did then was it voluntary or involuntary?
TBC if you went through insolvency you are going beyond my knowledge and probably should direct your questions and concerns to the insolvency practitioner that managed it for you.0 -
We closed the business ourselves. We ceased trading and closed it through companies house.0
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averagemummy wrote: »We closed the business ourselves. We ceased trading and closed it through companies house.
That might explain the lack of a statement.
The bank advanced a loan to ABC Ltd, ABC Ltd has now ceased to exist. However the directors of ABC Ltd guaranteed the loan and offered their house as security, hence the bank have called in the guarantee and made the directors personally liable.
The loan account will therefore have been closed and passsed to recoveries. You would likely need to contact the bank and request an account of your liability. You must have sent your statement of means to someone at the bank, start there.0 -
Thank you for the replies above. We went into the local branch on Sat morning as we have now found out that we are supposed to exchange this coming Friday and the bank still have not sent a redemtion statement.
The lady on the help desk just held her head in her hands, she just could not understand what is going on with this mess. There are no notes on their system to explain any of it.
We were told to pay £500 into the company bank account despite the company being ltd and having closed. The lady in the bank did not think we should have been made to pay this as the account and loan should have been frozen and the loan then would just be a charge on the house.
She could not believe we had been told several time to sell our house to pay the loan, to put it on the market, then we were given a deadline of 3 months to sell it etc. We have all this in writing from emails from them.
She also could not understand why we had been told (also in writing) that the only people who could deal with this were in India and we could not ask anyone in the UK for clarification.
Oh and also, the £500 per month we were paying, was just sat in the account. It hasn't been applied to the loan at all so the total of the loan has remained the same. So why had we been told to pay all this money in if they weren't going to do anything with it?
We have now been given an appt on Weds morning to speak to a business advisor in the local branch. Goodness only know what will happen then. We very much had the feeling, in fact it was admitted to us really that this bank have completely mishandled the way in which they are supposed to deal with this. We have also been given the details for the banks complaint system and urged to make a complaint, so horrified was this woman that we had been told to sell our home or be repossed.
We are also thinking about seeking legal advice - for the costs and stress to our family over being forced out of our home (if it turns out we need never have sold our house). This has almost cost us our marriage, we have sold our home and we will never be back on the housing ladder again.0
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