If a lender has no signed agreement from a customer, is the debt enforceable?

Tom_R

Westminster wrote: »

If the lender's only recourse is to reclaim full repayment - then what good is it to be saving small amounts every month as you and they acknowledge there never was a formalised loan agreement and thus loan repayments do not apply.

I would feel safer knowing I had the full balance sitting ready for any eventual recall unless you are very confident that you can obtain a loan quickly for the balance.

Valid. if he had to, I'm sure my friend could lay his hands on the £16k within 24-48 hours. Some of it might require a loan (oh the irony), but he could definitely get it.

He's just convincing himself that he's having to pay off the loan as he would have had to orginally.
So If in 5 years' time they still haven't come knocking, I'd be amazed they ever will by that point, and he will have essentially doubled "his" money.
Sort of.

andyfromotley

Tom_R wrote: »

Sorry if this deeply offends any of you gentle souls out there. Perhaps you should just deal with it?
*

You have resurrected a zombie thread from febuary and close with the advice that we should just deal with it? I'm guessing your sense of irony isnt too well developed.

matttye

I hope you've never pretended not to have received the money or played along with not having received it.

If you thought the money was a genuine loan but then subsequently went along with not receiving the money (e.g. "No sir I definitely haven't received the money") when things went pear shaped then you may have committed fraud by false representation.

If you realised that the money was paid in error but spent it anyway then you've committed theft.

Fraud or theft, take your pick!

redpete

Tom_R wrote: »

Sorry if this deeply offends any of you gentle souls out there. Perhaps you should just deal with it?

Sorry if thinking 'your friend' is a chancer, is morally suspect and is dishonest deeply offends your gentle soul. Perhaps you should just deal with it?

MacMickster

timbo58 wrote: »

The fact they do not have a paper trail showing a legal agreement isn't really a major issue, in fact it could be a hindrance to the debtor -since without evidence of an agreement between them both, the lender could demand an immediate repayment of the loan.

In which case Stators advice is very good, provided it goes into an instant access account with reasonable interest (open a tesco current account for example).

This is key here. If the OP's (imaginary) friend doesn't stop playing dumb and take positive action to alert the lender to their possible mistake, then they may well not treat this as a loan at all, but instead as a transfer in error.

Putting the monthly repayments away in an account won't help if repayment of the full amount is demanded.

rtho782

OP applied for a loan, was under the belief the application had been complete, it was reasonable for him to believe that, having just applied for a loan of £16k from his bank, and having received a £16k credit to his account from his bank, that the money was there for him.

He's even shown that this was his belief - he phoned them asking why they had not taken money via DD. This was perhaps silly of him, maybe he should have just left it!! But I can easily imagine how this could all have been completely confusing to the average consumer.

Personally, I'd be waiting for the bank to ask for money, then offer to repay at the amount/frequency of the original loan offer. I wouldn't be surprised if the bank write off the interest as they did not have an agreement.