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

Conrad2

CKhalvashi wrote: »

They should be attempting to make you pay the full amount, as you have made no payment last month, therefore they are invoking a clause in the agreement that lets them do this. You signed the agreement, not anyone else.

Again, this is not meant aggresively, it is to respond the the point you make in the paragraph above.

Non payment cannot be considered to be default unless there has been a period in which two payments should have been made and in that time no payments were received. A default notice cannot be served without a minimum of two non payment notices being provided to the debtor. Full repayment should not be sought without due processes, and these include strict time scales. This is in CCA74, and I don't imagine that anyone that has read it will agree with your above assertion.

So, if, as you state, they are requesting full repayment because of a non payment on 1 October 2012, then they have made yet another fatal breach of the Act.

Why is it my problem if they have done this, the judge will come down on them like a ton of bricks, and if they weren't in trouble before, they will be now. They would only have compounded their original error even further.

There is also the often mentioned minor point that the agreement has been terminated by the creditor. They cannot seek to collect full payment from me without doing so. Therefore there can be no expectation of me to make any further payments as per the agreement.

Conrad2

CKhalvashi wrote: »

ETA: They have another 6 weeks to respond to your complaint IIRC. You then have the right to go to the Ombudsman, who will agree with the views here.

Just to clarify.

I have made no complaint with regards this. Why should I? If I complain, it will likely delay reparation even further, as the eight week period before the FOS (corrected from OFT) will become involved far exceeds the deadlines required of the lender to act. Go down that route, and they won't have to do a thing for three or four months.

I have made statements of fact to them, I have provided evidence to them to support my claims, I have demanded they put them right. The more they delay, the more they risk.

The ball is in their court. If they fail to act, they will make their situation worse, particularly with regard to failing to challenge my assertion of rescission, which, if they do not refute within a certain amount of time, will give me reasonable grounds to assume that they have accepted.

If they act, their failings will be brought before the court and the OFT, and I suspect their failings are such (being little short of complete) that they will not want this, as the errors are fundamental to the issuing of a license. So even if the judge is lenient on them with regards to repayment of the debt (that is, insisting that some new agreement be mutually agreed with modification to reflect damages, etc.), the OFT will still be very interested in the fundamental failure to comply.

Any erroneous data the lender have provided to third parties will have to be corrected, and they will face damages.

If they decide not to act out of spite with regards to credit reporting, they'll probably end up having their license reviewed, and although they are unlikely to lose it, they will be liable to fines, costs and demands from the OFT.

So I think they will attempt to settle out of court, which I may consider, though I will be discussing everything with a solicitor to see if it will be worth pursuing fully in order to establish case law.

CKhalvashi

Conrad2 wrote: »

I have made no complaint with regards this. Why should I?

Because them's the rules if you feel the lender is wrong

If I complain, it will likely delay reparation even further, as the eight week period before the OFT will become involved far exceeds the deadlines required of the lender to act. Go down that route, and they won't have to do a thing for three or four months.

It's the FOS actually, and it will actually increase the chance of any reparation, however I feel that unless anything goes over £100 and you still having to pay the loan will be unlikely. They may offer you £250 to shut you up, but I doubt it.

I have made statements of fact to them, I have provided evidence to them to support my claims, I have demanded they put them right. The more they delay, the more they risk.

Evidence that 0 of 5 solicitors that people on this forum have access to, agree with.

The ball is in their court. If[STRIKE] they[/STRIKE] fail to act,[STRIKE] they[/STRIKE] will make[STRIKE] their[/STRIKE] situation worse, particularly with regard to failing to challenge my assertion of rescission, which, if they do not refute within a certain amount of time, will give me reasonable grounds to assume that they have accepted.

you, you, your

....... the OFT will still be very interested in the fundamental failure to comply.

What fundamental failure to comply?

They made an error, it's reasonable for a bank to make an error. If you sent a letter out to the wrong person, would you lose your job? Probably not.

Any erroneous data the lender have provided to third parties will have to be corrected, and they will face damages.

It will be corrected until August, which was the actual date of default. What have you lost at this time to claim damages?

If they decide not to act out of spite with regards to credit reporting, they'll probably end up having their license reviewed

As above

They will be liable to fines, costs and demands from the OFT.

They probably won't.

So I think they will attempt to settle out of court, which I may consider, though I will be discussing everything with a solicitor to see if it will be worth pursuing fully in order to establish case law.

Again, apart from a small amount of inconvenience before you defaulted, what have you lost?

The charges will make the compensation pretty much non-existent by now.

CK

Conrad2

CK, I know I come across as a ranting old lunatic, but your post above does you no credit. I am sure you have contributed lots of good information to this forum, but your posts here are selling yourself cheaply.

You seem to think that lenders can act as they please, and that whatever a consumer does, they will be treated as the guilty party, and you imply that CCA74 is only applied to the borrower.

You also completely ignore anything I say that supports my case, and reassert ridiculous assumptions on your part. I have repeated over and again that my payments were up to date to September, and that I have been provided with no evidence of non payment (because there is none), but somehow you know better and insist I defaulted in August!

(following para added)
My ageement, for whatever reason, has been terminated - they cannot seek collection without doing so. So you are going to have to get used to the idea that I don't have to pay them via DD anymore. Their only recourse is to renegotiate with me, or take it to court. That is simple. But when the court hears that it was done by a simple mistake that they failed to put right, despite my warnings, they are not going to be looked on favourably for wasting court time.

Your entire post above is completely fantastical, no matter what my circumstaces.

Virtually nothing you say is evidenced by law.

Janie4Now

This is pointless. OP doesn't want to hear what we have to say.... he wants someone to agree with him. Let him get on with it now and suffer the inevitable consequences.

Conrad2

Janie4Now wrote: »

This is pointless. OP doesn't want to hear what we have to say.... he wants someone to agree with him. Let him get on with it now and suffer the inevitable consequences.

Not really true. When people have made good points whilst debating my point of view I have acknowledged it. Even where they were quite scathing about me at the time. And on a number of occasions I have remarked how the debate has actually helped me in improving my understanding. Yes, I have made some pretty strong statements that haven't been as sound as I hoped, but the gist of my concern has remained the same, and despite the comments of some here, this has progressed more favourably than I imagined - and that is coming from legal advice.

Equally, when people have posted absolute rubbish, I have attempted to set them right.

You have said a bit about me being wrong, but you have never actually challenged a single point I have made with anything but misguided opinion. No facts or reference to acts or documents. I challenged you to do that, and you ignored me.

You act like a kid in the playground who wants to side with the bullies but hasn't got a clue what's going on.

I am prepared to listen to you, but please say something thoughtful or at least something that provides a little insight.

At least CK attempts to build an argument, even if it based on opinion and not fact or law.

But you?

I don't want to upset you, but if you are interested in the area, try reading up on it and come back with something more constructive. I'm not saying you'll agree with me, but you could actually have something to say that makes me think a little harder. Rather, you make the comments of an ignorant bully, and I am sure that you aren't that outside of this thread.

freshstart11

Have you had any update?

Conrad2

Yep,

Received a message from the bank admitting their error, offering some compo, and offering to correct their errors regarding credit reporting. They also confirmed that my payments were correct and up to date to September. They seem to be holding out that I will reaffirm the contract.

No guarantee that this will go either way at the moment, but does seem to be swinging in my favour.

Angry_Bear

Conrad2 wrote: »

Yep,

Received a message from the bank admitting their error, offering some compo, and offering to correct their errors regarding credit reporting. They also confirmed that my payments were correct and up to date to September. They seem to be holding out that I will reaffirm the contract.

No guarantee that this will go either way at the moment, but does seem to be swinging in my favour.

This is the response from them I would have expected (although I wouldn't have been surprised if they had refused to correct your credit report). If it was me, I'd take the offer and put it all behind me, but good luck if you decide to pursue getting the loan written off.

somethingcorporate

Seems like a good result so far. Do keep us posted.

Personally, I always favour the path of least resistance so would suggest you may want to just take the compo and continue with the agreement