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

Conrad2

Update (not that anyone is interested, but...):

Following my second letter to the CEO of my lender (first was ignored on the grounds that he wasn't allowed to become involved due to strict FCA regulation!!*), I contacted customer services for an update.

After having been told by this bank, and by many people on this forum, for the last ten months that I was wrong and that the issue here was my fault, I have had a break through.

I said to my case handler 'what you have been doing for the last ten months is illegal,' seeing as they have been demanding money from me in the absence of valid default notice.

Her reply, rather meekly, was 'I know.'

She told me she would be removing the reported default that same day.

The case is now in the hands of their exec office and I am awaiting their reply.

* As I am sure everyone here is aware, the FCA does not regulate consumer credit and will not until next year.

MuffinTops

Thanks for the update Conrad2. I like the fact that you're sticking to your guns and seeing this through. Too many people sit back and accept wrong treatment and I think our economy has some reflection of that.

Win or lose, I admire your tenacity.

Conrad2

Well, heard nothing from the creditor for two months after this, then got a letter from them demanding the money again. This set off a further round of calls and letters the culmination of which led to a letter informing me that they had started court proceedings which could only be stopped if I made a payment. I called collections again, asking for details of their plea to the court (being very happy for them to proceed) and got passed to legal, which has actually allowed this matter to finally, and properly turn towards a conclusion.

The upshot is that the litigation team told me that collections had no power to raise court action (making the letter harassment), and contacted collections/customer services and made them deal with the issues they have been ignoring for over a year now; even then it has taken nearly two months. However...

In a telephone conversation I had today, one of their call centre staff (in the absence of my handler) read out to me a response from the customer services legal team that basically justified every point I have been making over the last fourteen months, which the creditor has refused to consider or respond to. Admitted that termination was improper, that default notice was issued when customer not in default, that agreement is unenforceable, no evidence of a modified agreement, demands for repayment unjustified, and credit reporting unjustified. Also made a big point about the court 'having sympathy should the customer make an application under S140 of CCA74'. I fancy my actual complaint handler may not be entirely happy with the chap that read that out.

Still not over, and maybe I will be paying something back, but this is what I have really been getting at them for: recognition that their actions have consequences. Much happier about this, though have always been confident it would happen.

jonesMUFCforever

...........But you do accept that you owe them money?
That's a shift in your stance if I remember rightly.

Conrad2

I accept that they loaned me the money and I accept that they terminated the only agreement that existed entitling them to expect repayments. It was done of their own accord and despite a warning I sent them saying they acted in error. I did a SAR on them in June and I found a record of my email complaint telling them about their error, and it was reviewed and dismissed eight days before they made their second demand for full repayment (they had actually received it nine days before their first demand!), with a note saying 'cust has maintained payments, cust has had default registered'. That is not just a tad careless (which the OFT says they are not allowed to be), but also in breach of the terms and conditions of the signed agreement and CCA74, and it was done quite voluntarily.

They have refused to accept the consequences of their actions: demanding full repayment including losses in the absence of any breach by myself, and they have never removed that threat. If that threat had been withdrawn, this could have been sorted out mutually a year ago. My credit file has not had a month without adverse data showing on it in the last fifteen months, and they have just told me they had no right to do it.

I wouldn't say I owe them money, but I realise that a court may wish me to make some kind of repayment, even if it is offset against damages for their incredible actions, and possibly any adjustment made to reflect their unfair behaviour under S140 of CCA74, which their own legal team feel will be looked upon sympathetically; there is a strong possibility they may even end up paying me something. And I will not pay anything without the threat of collection being removed, which I cannot believe any court will find unreasonable.