advice re unenforcable debt

jackyh

I have been told by a debt management company that a bank loan I have is unenforcable as the bank have not supplied them with the credit agreement, the debt management company have said that the bank could find the credit agreement any time in the next six years and my loan would become enforcable again, in the mean time they are charging me for solicitors fees, but they won't tell me when I will have paid the solicitors fees off, and they say after 6 years if the bank don't find credit agreement I will be due to pay debt management 25% plus 8% of the amount I have not had to pay, but I have no paperwork stating these things, and I have asked twice for this but they have not sent me anything. Is what they say about unenforcable debt right, and what do I do about these payments they say they are due?

dunstonh

I have been told by a debt management company that a bank loan I have is unenforcable as the bank have not supplied them with the credit agreement

If the bank cannot supply a copy of the agreement then it can become unenforceable in court.

the debt management company have said that the bank could find the credit agreement any time in the next six years and my loan would become enforcable again

correct.

in the mean time they are charging me for solicitors fees, but they won't tell me when I will have paid the solicitors fees off, and they say after 6 years if the bank don't find credit agreement I will be due to pay debt management 25% plus 8% of the amount I have not had to pay

Whilst the bank cannot enforce the debt to get you to repay it in a court of law, it does not get written off. It can stay on your credit record as defaulted for 6 years after the end of the original term of the loan. You destroy your ability to get credit during that period and effectively burn bridges with that lender for future borrowing.

What this debt company are asking you for is a disgraceful amount. It will also be subject to VAT at 20% as well.

jackyh

Thanks for that, still not sure what to do. Surely the debt management should be sending me the info I have asked for?
I have been considering whether to claim PPI on the loan, but the debt management talked me out of it saying this would be making the loan enforcable. What to do?

dunstonh

I have been considering whether to claim PPI on the loan, but the debt management talked me out of it saying this would be making the loan enforcable.

It wouldnt unless you had to refinance and a new agreement was signed.