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

SeanG79

What I know from "inside knowledge" is that 2 wrongs don't make a right and when you cancelled your direct debit and ceased to make your obligatory payments, you are in breach of the agreement. The lender may ultimately acknowledge their error and rectify the account but late payment markers caused by you cancelling the direct debit aren't always removed...

You feel you have been wronged and understandably so, but should have written via recorded delivery to the lender and explained the error as opposed to cancelling direct debits etc. The lender even by sending a collection agent would not have simply gained additional funds that would be lost to you if you didn't pay the collections agency whilst the dispute was ongoing...

CKhalvashi

Conrad2 wrote: »

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.

They've messed up, and as such they can correct.

You've made no attempt to pay whilst the investigation takes place.

The lender has 8 weeks to investigate, and longer in some cases. Under no circumstances can you take it further in that 8 weeks.

8 weeks have not yet passed.

Can you please tell me where we are wrong? :eek:

CK

Conrad2

CKhalvashi wrote: »

They've messed up, and as such they can correct.

You've made no attempt to pay whilst the investigation takes place.

The lender has 8 weeks to investigate, and longer in some cases. Under no circumstances can you take it further in that 8 weeks.

8 weeks have not yet passed.

Can you please tell me where we are wrong? :eek:

CK

I have no obligation to pay, seeing as the lender terminated the agreement. That is so basic and is where all of you are going wrong. I did nothing to break the agreement, they are solely responsible for their actions, which have taken place in ridiculously hasty time scale, and despite written protestations from myself through their own channels.

Also, as I have repeated a number of times, this has nothing to do with the FOS. I have made my complaint to the lender, and it is on record, and have no intention of making any further complaint. As I have mentioned time and time again, I have informed them of my position and provided all evidence to support it. They, in the mean time, have terminated the agreement (yes they have) so no longer have anything in place, due to their own actions, to service the debt I have to them. They cannot pursue repayment due to default, because I did not, and if they take that to court, it will be very simple for me to prove.

Therefore, it is up to them to either

1 Negotiate a new agreement
2 Take me to court on the grounds that I owe them the money, and that there is no agreement in place for repayment due to their actions.
3 Terminate the debt

You are not necessarily wrong about the processes you are talking about, you just aren't listening to what I am saying, and are gainsaying what you do hear.

Conrad2

Just in case anyone missed it. They have terminated the agreement.

SeanG79

They have terminated the agreement, therefore you are liable for the full outstanding amount. Or do you think the outstanding amount simply disappears and a fairy godmother wipes it clean?

CKhalvashi

SeanG79 wrote: »

They have terminated the agreement, therefore you are liable for the full outstanding amount. Or do you think the outstanding amount simply disappears and a fairy godmother wipes it clean?

Oh, oh, first one, first one.

What do I win? :rotfl:

somethingcorporate

I have a sneaky feeling that you are hoping this now means it is written off - it's crept into your posts a couple of times now.

Be under no illusion, a small admin error does not mean they will wipe thousands of debt that you legitimately owe.

I have a feeling you're going to pop back in a couple of days saying that the CEO has personally turned up at your door and cancelled your debt and brought your wife a bunch of flowers. But that is just the skeptic in me!

Tixy

Right so you are going to do nothing and wait for them to take action?

And if they don't for a while you are presumably accepting of the fact that the default will remain on your credit file in the meantime.

And lets suppose that in 9months time the creditor issues court papers for the debt. You have stated you agree that the money is owed. So you either complete the court papers that states you agree with the debt and are issued with a CCJ. Or even though you accept the money is owed you complete the paperwork to dispute the debt. I'm guessing you will want to have your say in person and so will attend the hearing in person.

And then when judge says something along the lines of Mr Conrad you accept that this money is owed and yet you have paid nothing towards the debt for say 6months despite contact from the creditor and their representatives. Whilst the judge may accept that the lender has made an error initially, that won't actually stop him granting a CCJ against you - because as you have accepted - you do owe the debt, and are not making repayments towards it. He may well state that you be allowed to repay in installments at a similar rate to the original agreement and may not allow them to add additional interest on top of the original interest cost - but you will still have a CCJ against you.

talana

Wow, I had a quick read of this thread yesterday and can't believe it's still going. None of the arguments have changed in that time.

OP says X
Other posters point out the error of X and suggests he does Y
OP says no X is right Y is wrong
Others again disagree and recommend Y
Repeat ad infinitum..............

OP, why did you bother to post at all if you're not going to take on board what people tell you? Now you're still just chuntering away which isn't going to achieve much at all. If you're dead set on doing things your way then go for it.

I reckon everyone else should save their breath and stop bothering. He ain't listening...........

bangersnmash

Conrad2 wrote: »

I have no intention of making any further complaint to them. As I have mentioned time and time again, I have informed them of my position and provided all evidence to support it. They, in the mean time, have terminated the agreement (yes they have) so no longer have anything in place, due to their own actions, to service the debt I have to them.

Therefore, it is up to them to either

1 Negotiate a new agreement
2 Take me to court
3 Terminate the debt

I have said this over and over again.

Conrad2 wrote: »

Just in case anyone missed it. They have terminated the agreement.

Again, I agree with your analysis of this and the action that you've taken so far. You're wholly in the right and they're wholly in the wrong.

However, faced with this kind of nonsense I would probably get on the phone to them and attempt to get them to correct their errors one way or another. And I wouldn't give up until I've given them a good going over.

As I mentioned in my previous post, when I don't get satisfaction from the first person then I sometimes ask to speak to a supervisor and if they still don't see sense or do what I want then if possible I go over their head as well and ask to talk to a manager, someone more senior.

I carefully don't raise my voice or saying anything rude and I attempt to be friendly and chatty with them, even if they're being obtuse and obnoxious, in order to try to get them to like me. If I can get a bit of common ground going with them then I find that that kind of personal angle can sometimes make all the difference and sometimes I can persuade them to go against their natural inclinations or the rules in order to give me satisfaction.

Yes, there's an art and a science to getting these types to roll over and get them to do your bidding.

As I say, mostly I fail in these kind of efforts but I have had one or two notable successes, so it's worth a try. As well as the one bank success I have also managed to get BT to jump through some hoops for me and reverse their decisions a few times. Again, it took some smarm and charm and a bit of hocus pocus snake charming at my end to do it but if you can get through to their human side and get them rooting for you, rather than against you, then sometimes you can knock all the dominos down and get the proper service that you should have had in the first place.

Yes, in your position I'd probably get on the phone and try to inject a bit of commonsense and my delightful friendly personality into the situation and even if it means I have to talk at length with a load of numpties and play a bit of psychology techniques on them to try to get them on my side then I will generally do that effort. Might as well.

It's nice when you do manage to get it all sorted. And if it still remains unsorted, well, at least you tried.

I always make a note of their name and the date and time of the call and then make notes as I go along and as soon as the call is finished, while it's still fresh and clear in my mind.

Then I can quote from my notes to the next person and correct any mistake that they make and get them up to speed about what has happened so far and make it clear to them that I mean business and I'm on the case and that I'm not going to let them fob me off.

Well, not till I've done battle with all of them - but still lost, if that is what happens. At which point eventually I will admit defeat, the usual outcome. But, as I say, the occasional success does justify going through with the palaver. Well, I reckon.

Anyway, again, good luck.

And just ignore the negativity from some people here, you get lots of that on chat boards so just rise above it, don't engage with it.