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

Conrad2

Angry_Bear wrote: »

I'm defintiely no legal expert,but I suspect this is wrong. I would have thought that the lender has invoked a clause in the agreement that allows for them to demand immediate repayment if the terms are broken.

This I also suspect is just wrong. They aren't trying to recover the debt twice, they are trying to recover it once through two different means.

Thanks for the reply.

You are right to say about the clause. But you also contradict your point when you mention the breaking of terms. In my situation, the terms have been broken, but by the lender and not the borrower. This seems to be such a rare and unusual situation that people are finding it very difficult to perceive. The agreement with my lender is that I will pay them regular premiums until the debt is paid. I have done this. However, due to some error over which I have no control, the bank have terminated the agreement. As I have honoured my side of the agreement, the lender cannot seek repayment on the grounds of default. And there is no question that the agreement has been terminated, if not least by the fact that the lender has threatened legal action if I don't pay the full amount immediately. Yes, it is a clause, but it requires termination of the agreement before collection can be invoked.

Conrad2

Hanky_Panky wrote: »

Conrad2 before I start I would just like to let you know that in a previous life I was the last point of contact at a large retail bank before complaints were escalated to the Ombudsman so have a lot of experience dealing with often very technical complaints, particularly in similar situtions to yours.

I'm certainly prepared to take what you say at face value and believe you when you state you were paying on time originally and in the first instance were the victim however your subsequent actions are compounding the problem making it worse and far more importantly are undermining your argument significantly.


So to summarise:
You have taken action based on some quite odd assumptions that you seem to be claiming are law - not quite sure where you are getting this advice from but it is seriously flawed.

The bank have made a mistake - something has gone wrong with your account for some reason - none of us, even you know why. Through the actions you have taken on the belief that the agreement is terminated you have now technically defaulted on the original agreement by cancelling the direct debit and preventing them from taking payments due. This compounded the problem rather than help in any way. It seems they have issued a default notice.

Now there are some mitigating factors in your favour: you were up to date at the time of the initial contact and it seems to be an administrative error on their part. The default and timings may not have been followed correctly. They have not responded to your previous correspondance.

You are questioning why you should have to sort out this problem and seem to think you are in a position of strength. Quite simply you are contributing to the problem by not following the common sense approach to get this resolved once and for all and by your previous actions. For a court to take you seriously (if it went that far) it has to see that you have done everything in your power to solve the problem as well. Currently you are refusing to make contact with the lender as you already have in the past - not really good enough. This will be having an impact on your credit file however by communicating with them you can sort this out but honestly you have to stop being so belligerent.

Use the mitigating factors above to correctly assert your position of the victim and engage them to help you get it sorted - communication, communication, communication ! They really will help if you follow the correct course of action.

Good luck !

Thanks for the best wishes.

Please take careful note.

The lender warned me they would terminate the agreement and engage a collection agency to recover the debt. This is not a simple case of default, because they, though in error, have terminated the agreement, as they said they would do. If the situation was as you described, they would seek the monies themselves, not through an agency. They have jumped the gun, and for some reasoneverything has been triggered prematurely, including the termination and collection. It is still not even a month since I got the first hint that there was any kind of problem, yetthe collections agency's notice to me was dated ten days ago.

What is happening is very unusual. Even if I had defaulted, things would not have happened this quickly.

Please trust me on this. You are assuming that the bank would not terminate the agreement, I imagine because you think why would they, but they have, just as they falsely identified me as having missed a payment. Lenders can get things wrong.

And for the record, I have contacted them on three occasions, The last two times written, as I now require everything to be in writing, and have had nothing but auto replies to date.

I suppose that is probably wrong too!

Janie4Now

OP - is it a Lender with branches so that you could go in and try to sort this out in person?

Whoever is in the wrong here you CANNOT just leave it to them. It IS your problem whether you like it or not and saying that you have written to them is insufficient.

I am not saying the Lender is right, or has behaved well, but you MUST continue to get this sorted before it escalates out of control. Your feelings and beliefs as to the rights and wrongs are, at the moment, immaterial.

somethingcorporate

You are completely belligerent OP which is simply not helping your case.

Just go in and try and sort it and stop being a stubborn fool.

Conrad2

somethingcorporate wrote: »

You are completely belligerent OP which is simply not helping your case.

Just go in and try and sort it and stop being a stubborn fool.

Belligerant. How? I have informed them of their error,provided them with evidence. Taken appropriate action when they terminated the agreement, and informed them of my reasons for doing so.

They are yet to respond to any of my complaints, and yet to correct any of their errors.

And you tell me I am belligerant. What does that make the lender

Are people from another planet allowed to post on this forum?

somethingcorporate

You tell us, what planet are you on anyway?

DCFC79

Conrad2 wrote: »

Belligerant. How? I have informed them of their error,provided them with evidence. Taken appropriate action when they terminated the agreement, and informed them of my reasons for doing so.

They are yet to respond to any of my complaints, and yet to correct any of their errors.

And you tell me I am belligerant. What does that make the lender

Are people from another planet allowed to post on this forum?

Why dont you take the initiative to either contact the lender(which you have done by post i believe) or go into the branch and try to get it sorted there.

I think this is a case of head + wall = serious headache scenario.

somethingcorporate

DCFC79 wrote: »

Why dont you take the initiative to either contact the lender or go into the branch and try to get it sorted there.

The problem with principles is sometimes they serve no purpose other than to make the holder of said principle righteously indignant. Righteous indignation doesn't get you a refund for your item, but I guess it allows you the opportunity to chunter away on the internet. Fluffnutter

Seemed appropriate

Hanky_Panky

Has to be a troll surely - no-one can be that blinkered.

Conrad2

Hanky_Panky wrote: »

Has to be a troll surely - no-one can be that blinkered.

The lender has done about the worst thing it could possibly do to me, in error, and so far has not replied to any of my communications or even provided any justification for it. I have provided them with all the information I can, at every point that an error has become apparent, and they have ignored it, escalating the seriousness of their errors as they do so. I have attempted to protect myself from their error, and explained all my actions to them as they have been taken.

Some on this forum are putting the blame at my door. They have also criticized me for taking wholly appropriate action when the party who broke the agreement (sorry, I have the letters, there is no question of this) attempted to unlawfully obtain money from me.

I am amazed by the lack of insight shown here, and am stupefied by people purporting to have inside knowledge that demonstrate little or no grasp of either law, personal finance or just down right basic ethics.

Thanks though to those who have either posted or contacted me directly with constructive advice, and for actually reading and absorbing what I have said.