Lender has terminated my loan in error, where do I stand

Janie4Now

OP
I genuinely wish you luck with your case but the risk you are running is huge - I hope both you and your wife take that risk into account when deciding on the way forward. Your principles and beliefs may cost you a great deal more than you seem to be prepared to consider..

However, I suspect we will only be able to surmise the outcome when we hear nothing further from you.

somethingcorporate

Out of interest we've been flicking through PLC (practical law company) a legal resource that lawyers can access and we suggest this hinges on whether the breach is serious enough to be a "repudiatory breach" or not.

There are a couple of things you need to consider:

When termination occurs - I suggests this is when you confirmed repudiation of the contract and not when they breached it. You can affirm a repudiatory breach and both continue with the contract so your action needs to (and did) reflect the desire to terminate but until you communicated such it was still very much an on-going contractual relationship.

The second, and most pivotal, is what the breach actually was and whether this was serious enough to represent a repudiatory breach or not (otherwise it is a minor breach and you can only claim damages for). I suggest the breach is them terminating the loan outside of the agreed termination clauses (which would be quite a narrow definition in your contract but as long as you would be paying back on time etc etc they would not be able to terminate). Whether terminating outside of the prescribed termination clauses is "repudiatory breach" or not is the crux of this issue and the risk is your not paying could actually be construed as a repuditory breach on your part (if the lenders breach is not considered serious enough) so your path does come with considerable risk. I think the attempt to take money at a later date has no baring on this specific (legal) issue.

Good luck, all the above it just my laymans interpretation of some legal jargon so I do suggest you take expert legal advice on the issue. One thing that is certain is this is an incredibly subjective and complex area (and a very interesting debate).

jonesMUFCforever

Gues we'll have to come back say the week after next to see what mark OP got.

redpete

Conrad2 wrote: »

...I know far, far more than you do.

Undoubtedly, but then you might have noticed that I have made no comment on your understanding or interpretation of the law, only on your attitude and the way you failed to take common-sense actions to clear up the problem early in the process and then seemingly plan actions which are way out of proportion to the problem itself.

Lou67

I believe that there is no way in a month of Sundays that this loan will be wiped out. Like I said earlier; companies have sent out debt collection agencies and court threats and all sorts for three hundred quid; even half that in fact... so I think you are living in Cloud cuckoo land, if you seriously think that you will not have to pay back this loan. You WILL have to pay it.

I strongly suspect however, that even if you find out that you *do* have to pay it back; you will not come back here and admit it.

Janie4Now

Any news........?!

simon_the_poet

somethingcorporate wrote: »

Out of interest we've been flicking through PLC (practical law company) a legal resource that lawyers can access and we suggest this hinges on whether the breach is serious enough to be a "repudiatory breach" or not.

There are a couple of things you need to consider:

When termination occurs - I suggests this is when you confirmed repudiation of the contract and not when they breached it. You can affirm a repudiatory breach and both continue with the contract so your action needs to (and did) reflect the desire to terminate but until you communicated such it was still very much an on-going contractual relationship.

The second, and most pivotal, is what the breach actually was and whether this was serious enough to represent a repudiatory breach or not (otherwise it is a minor breach and you can only claim damages for). I suggest the breach is them terminating the loan outside of the agreed termination clauses (which would be quite a narrow definition in your contract but as long as you would be paying back on time etc etc they would not be able to terminate). Whether terminating outside of the prescribed termination clauses is "repudiatory breach" or not is the crux of this issue and the risk is your not paying could actually be construed as a repuditory breach on your part (if the lenders breach is not considered serious enough) so your path does come with considerable risk. I think the attempt to take money at a later date has no baring on this specific (legal) issue.

Good luck, all the above it just my laymans interpretation of some legal jargon so I do suggest you take expert legal advice on the issue. One thing that is certain is this is an incredibly subjective and complex area (and a very interesting debate).

Every consumer credit agreement, contains a contractural termination clause. So unlawful termination is not possible, true the CCA and lately the EU directive say that notice must be given before it is actioned.

Simon

Conrad2

Hi chaps,

This will quite probably seem like no new, and I am not asking you here to believe me. I am posting this to give an honest account of where the situation now stands as far as I am concerned and understand that some will feel it has little validity. I have received some advice with regard to the situation, and will be meeting with a solicitor next week to discuss future action.

Anyway, here goes...

I accepted repudiation, and declared rescission. This is all proper, though if/when I engage a solicitor they will clarify this with the lender.

It is correct to say that I have to pay back all the money given to me as their part of the agreement, but only that. Meaning no interest, just the original loan (£29,000). Likewise, they have to return all payments made by myself under the agreement.

However, as they are the guilty party, having fundamentally breached the agreement, I am entitled to seek damages, which means they also have to add statutory interest to their refund. Given we were half way through a seven year agreement, and most of what I have paid is interest, I estimate that the two amounts repayable would be very similar. A judge is also able to place further responsibility on the lender, in light of...

Failure to comply with CCA74,
Breach of The Data Protection Act,
Unfair relationship between lender and borrower.

All of which can result in fines, further damages and unfavourable judgements.

Allegedly!

I realise one would have to accept that what they did fundamentally breached the agreement, but as they denied me any of the benefits of the agreement (which they have done in entirety and without due cause) it is believed that this should be clear cut.

It may take some time before this is completely resolved, though faulty credit reports etc should be removable immediately as no default or late payment was made (another breach by the lender!).

To summarise...

1. If they pursue the case, they get their money back but risk having to pay me more than that figure in refund, interest and damages, they also risk judgements on their actions.

2. If they write off the debt or accept a settlement offer, we end up with a similar situation with regards money (the mutual repayments plus mutually agreed damages), but they don't risk judgements against them.

This presumes that I don't decide to pursue them, which I am happy not to do as long as they remove any erroneous data from credit reports.

Janie4Now

You are completely mad. You are risking your financial future for some half-baked legal loophole. How on earth could you repay them even 29K (plus any awarded interest) with a wrecked credit file?

Get real and try to get this sorted with them instead of trying to be clever!

Conrad2

Janie4Now wrote: »

You are completely mad. You are risking your financial future for some half-baked legal loophole. How on earth could you repay them even 29K (plus any awarded interest) with a wrecked credit file?

Get real and try to get this sorted with them instead of trying to be clever!

Please, just read it properly and and then check out English Law. Everything is there for you if you want to try to understand it.

You are clearly ignoring what you don't want to see.