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Unsecured unregulated loan

Hi All

Could someone advise the process a bank would follow to call up a loan and take legal action.

There is a lot of info on a CCA loan, but I cant find anything on unsecured and unregulated loans.

Thanks

Comments

  • What do you mean by unregulated?

    What kind of loan do you have?
    :beer:
  • Its the Northern Rock loan in excess of 25k which doesn't fall under the CCA.

    They followed the CCA process to get a CCJ and I just wanted to know that as they claim this is not a CCA loan, then what should be the process they should have followed to recall the loan.

    In essence what is the different processes between a CCA loan and a non CCA loan?
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hello there,

    Do you know when you took out the loan? The £25,000 limit changed a few years ago.

    Also, when you say that they've followed the CCA process to obtain the CCJ, would you mind expanding on that for us?

    Best wishes,

    David @ National Debtline.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Hi David

    I had mentioned this in a post a few months back, but never got a reply back from you!

    Loan of £30,000 taken out in Jan 2007. NR obtained a Decree in 2009 (I used CCJ as lots of people don't know what decree is).

    They took this to court on the basis this was a CCA loan etc and that I defaulted and obtained the decree. I was not there to defend.

    Just want to know, if this isn't a CCA loan, then what process should they have followed to get a decree (correct process).

    The fact they obtained a decree, does this mean the decree is wrong or that they have confirmed that it is a CCA loan?
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hello again,

    The £25,000 upper limit was still in place in 2007. It's an interesting query that you have, and sadly one that I do not know the answer to. I have come across examples where debts of over £25,000 have been treated as if they were CCA regulated before, so this isn't an isolated example. That said, it's the very first one I've heard about that has been through the Scottish legal system.

    I'm very sorry to say that I wouldn't know if you can challenge the decree. There are other forums on the internet that are little more weighted towards legal challenges. Also, if you are near a Law Centre, they can often help in this area. A couple of the guys at the Govan Law Centre are VERY hot on CCA issues - whether or not they can help you in your situation I simply do not know.

    I have seen examples where the court have allowed an order to be made where it was clear that the borrower had the money and defaulted on payment. I'm wondering if the court would consider the same outcome regardless of if the creditor followed the correct contractual process. I do hope that you can seek further help to get to the bottom of your query.

    - David.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Thanks David

    Can I ask that if this wasn't a CCA loan, what would be the process that the bank would have to follow to get to court.

    I.e would they have to issue a calling up of the loan or issue a default etc. What is the process in those circumstances?

    Regards
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hello again,

    The process would generally be whatever is set out within the contract. Most unregulated contracts (we used to see a lot of these in relation to car finance before the removal of the upper limit) had terms which made clear that further action could be brought if two or three payments were missed. Some mentioned that they would still send a notice of warning of a default (similar to a statutory default notice as per the CCA). Unregulated loans have very little direct statutory protection - although there could be general protection via the various consumer protection/consumer contract laws. This is really outside of my area of knowledge though. I wouldn't know if any of it could be helpful in your case.

    If you have you original paperwork you may want to show it to a lawyer specialising in contract law.

    - David.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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