Natwest Loan

lkman

Hi,

I have an old natwest loan that was taken out around 2007. I ran into financial trouble in 2009 and put this loan into a DMP of which it is getting repaid every month. The loan was initially around 24k. When i ran into trouble i called natwest to ask for a copy of the loan agreement and they couldnt provide it as had lost it, but by that time they had defaulted my account (around 2009). This default and subsequent loan has now dropped off my credit file and the only record that it still exists are the payments i make to the DMP and they then make to the debt collector, Triton. i want to know that as i have letters from natwest confirming that they cannot find the agreement, but i am still under contract to make the payments, whether i should stop making the payments to Triton via the DMP, or whether this would subsequently lead me to being chased for the outstanding debt, which is now around 18k. Another option is possibly ask Triton directly for a settlement figure, which i would be looking at hopefully 20% of the total balance, bare in mind they only get £65pm from the DMP.

Advice would be greatly appreciated.

sourcrates

Hi,
Ok, no agreement means they can't obtain a CCJ against you in court, so basically there's nothing they can do, should you choose not to pay it.
Why on earth are you paying this when you are obviously in financial difficulty, and they have admitted they have no agreement ?

You could offer a really low amount to settle, on the basis that they are unable to enforce the agreement, or you could cancel the payment to the DMP and walk away.

DevCoder

Surely it depends on when in 2007 as depending on the date could mean they could reconstitute the agreement?

lkman

Thanks for the response.

I am paying it as I received letters from Allied International Credit (who it was passed onto) trying to chase the debt, so I just added it to my DMP and pay £65pm off it. Obviously I want to get rid of the loan one way or another, but of course don't want to pay for it if I am not obliged too.

In a letter I have here in front of me from Natwest dated 7th July 2009 (before they lodged default onto my credit file which was 3rd October 2009), where I asked for a copy of my credit agreement, it states 'we regret to advise that the loan agreement has been misfiled and despite searching our records we have been unable to locate it. Our record of the setting up of the loan has insufficient detail to enable us to recreate the agreement with the required degree of certainty this course of action requires.'

It goes onto say as follows:

'In the circumstances we appreciate that under s.77(4) of the CCA if Mr Chapman decides not to meet his obligations under the loan as they fall due we will be unable to take steps to enforce repayment of the loan. However we consider that he should continue to meet his obligations under the agreement bearing in mind that the agreement isnt void, it remains valid and his continuing default will be report to the Credit Reference Agencies. S.77(4) only prevents us from pursuing recovery of the debt through the courts.

Obviously they cant lodge another default if I just stop paying Allied credit can they? Is it advisable and worthwhile for me to write to allied credit directly and offer to pay then £10% of the balance for a full and final settlement, this would be a sum, of approx £2,000??

Can anything else happen if I just ask my DMP provider to remove the loan from my monthly contributions. What I don't want is any further action and cause for concern and especially no more defaults now this one has dropped off my file.

Any concrete advice here would be really appreciated.

lkman

The date the loan commenced was 8th March 2007

takman

Personally I would ask them what amount they would agree to settle the debt for considering that they no longer have the original paperwork.

It's not very ethical to simply stop paying them just because they have lost the original agreement. You still received the money and spent the money and agreed at the time to pay it back.

lkman

Yes I agree with you. As the debt is with AIC now and not natwest, is it those debt collectors that i should be making the offer too??

sourcrates

You have a letter from the bank admitting they do not hold a valid credit agreement for that account, and also admitting they can't do anything about it.
Offer them £1 to settle it, ethics mean nothing, the consumer credit act is there for both the debtor and the creditors protection, they are well aware of there obligations under CCA 1978, sec 78, read it, it clearly states an account is unenforceable if your sec 78 request is not complied with.

You are under no obligation to pay this, my suggestion, remove it from your DMP, write and tell Natwest/DCA you will not be paying them as they have failed to comply with your sec 78 request.

Do not look a gift horse in the mouth.

lkman

and if i do as you suggest can anything happen in regards to chasing me for this debt or can anything further happen to my credit file?

National_Debtline

lkman wrote: »

and if i do as you suggest can anything happen in regards to chasing me for this debt or can anything further happen to my credit file?

Hi lkman


The default has already dropped off your file - it can't be re-added and no new default can be created.


If the debt is unenforceable it effectively means they are unable to bring legal proceedings against you, so in other words no, nothing further would be able to appear on your credit file.


If the creditor then still persists in contacting you and demanding payment, you can choose to ignore them or raise a complaint.


Dennis
@natdebtline

lkman

Thanks dennis. Am i able to email u a copy if the letters i have from natwest so you can confirm that for certain?