Loan Forms Of Agreement

aspinall

I used to work for a bank but i stopped working there around a year ago. in 2008 i took out a staff loan with the bank, unfortunately 3 years later i came into some financial difficulty and i fell behind on the payments. the loan subsequently defaulted, i still owe £3000 on this loan and i've tried to call them to see if i can start to pay it back monthly again, but theyre having none of it and want the payment in full, and obviously i don't have this type of money.
Someone who i used to work with told me that back when i took the loan out the bank did not got their staff to sign any loan forms of agreement, in fact they didn't get us to sign anything, back then i just rang the staff loans team and the next day they just put it in my account.
I'd like to know that if the bank do not have any signed forms of agreement from me, do i still have an obligation to pay them back??
From what i'm reading on other sites its saying that 'by signing the loan agreement the participant agrees to be bound by all of its terms and conditions and agrees to repay the loan' (or along them lines).

im just wondering if anyone with any knowledge in this area could tell me where i stand with this.

thank you.

Tixy

You could write to them to ask them for a copy of the loan agreement, a CCA resquest at a cost of £1 (assuming this counts as consumer credit and not an employee loan).

Or you could do a subject access request unde the data protection act (at a cost of £10) if you wanted.

In terms of monthly payments - rather than ring you could write to set out a repayment offer you can afford and then start making those payments. And they may well accept them. If they didn't they'd have to try taking court action.

aspinall

im not looking for a way of gettin out of paying it all together, just some ammunition i can use so they can let me pay it monthly. and im still within the financial industry

jonesMUFCforever

Does your new employer know about this possible default?
Can you not get a new loan to clear the old staff loan?

aspinall

jonesMUFCforever wrote: »

Does your new employer know about this possible default?
Can you not get a new loan to clear the old staff loan?

no they don't know, my new work doesn't deal in personal loans.

aspinall

I have spoken to someone with a legal background, and they have told me that if i send a letter to them and refer to the principles set out in the case 'Mcgruffick Vs RBS (2009)' and that the debt is unenforceable, and although i know of the loans existence, they have failed to comply with the consumer credit act of the time which requires all loans to have signed forms of agreement.

so basically they cant take me to court to get the funds, but they can send me lots of letters, and they are very unlikely to be able to sell on the loan on if they have no signed FOA.

jonesMUFCforever

aspinall wrote: »

I have spoken to someone with a legal background, and they have told me that if i send a letter to them and refer to the principles set out in the case 'Mcgruffick Vs RBS (2009)' and that the debt is unenforceable, and although i know of the loans existence, they have failed to comply with the consumer credit act of the time which requires all loans to have signed forms of agreement.

so basically they cant take me to court to get the funds, but they can send me lots of letters, and they are very unlikely to be able to sell on the loan on if they have no signed FOA.

What about online loans that you sign electronically>???

If you are still in financial services you need to be very careful that a default is not registered against you or you could be looking for a new job.

aspinall

jonesMUFCforever wrote: »

What about online loans that you sign electronically>???

If you are still in financial services you need to be very careful that a default is not registered against you or you could be looking for a new job.

you sign with an E-signature, the default was already on my file when i got my job, it was on there when they done their credit checks and it was fine. Defaults and missed payments are not going to get u sacked from your job within the financial services, a CCJ may impact on your ability to give financial advice but i doubt it. bankruptcy may well get you in a spot of bother, but i know someone who does the same job as me that had to register herself bankrupt after a divorce that left her incapable of paying for her home, and she is still working here doing the exact same role.

Thrugelmir

aspinall wrote: »

back then i just rang the staff loans team and the next day they just put it in my account.

Sounds like you didn't bother reading the small print

John1993_2

aspinall wrote: »

I'd like to know that if the bank do not have any signed forms of agreement from me, do i still have an obligation to pay them back??

No, you should just feel free to tell them to stuff it. I mean, I know that they helped you out when you asked in the past, and seem to have gone out of their way to make it quick and easy, but there's no reason that you should feel any obligation to act similarly.

Also, if you ever see that a customer has mis-filled any information on their forms, just have their money off them too. That's the name of the game after all, isn't it, just to take what you can without worrying if it's right or not...

IainHL

aspinall wrote: »

I have spoken to someone with a legal background, and they have told me that if i send a letter to them and refer to the principles set out in the case 'Mcgruffick Vs RBS (2009)' and that the debt is unenforceable, and although i know of the loans existence, they have failed to comply with the consumer credit act of the time which requires all loans to have signed forms of agreement.

so basically they cant take me to court to get the funds, but they can send me lots of letters, and they are very unlikely to be able to sell on the loan on if they have no signed FOA.

Your friend with the legal background is referring to McGuffick v The Royal Bank of Scotland Plc [2009] EWHC 2386.

You would therefore, as Tixy said, need to start the process by making a CCA1974 s.77 request that they would not be able to fulfil.