Bank can't find paperwork for business loan : thinking through the implications

Humdinger1

Thanks for your replies everyone, even those who plainly think I’m a crook! Just wanted to give you all an update and answer some of the questions above.

So, the bank has said that it looks likely that the loan was activated without me signing anything, which is serious. Their document storage co can’t find anything, neither can they, neither can I. They have said that I’m in line for formal compensation and have forwarded a summary of the situation to the complaints team; I should know more next week. They have also identified the fact that some processes/checks regarding a fellow director weren’t carried out, which they find shocking and (in their eyes) lends weight to the probability that the loan wasn’t administered correctly either.
They are also looking at refinancing the remainder of the loan at a much lower interest rate, not something they normally do. You can overpay or pay off early all of their loans without penalty.

So, a refreshing turn of events – whether you think that banks can do no wrong, or do no right.

For those who think I’m trying to pull a fast one, let me say this. There are plenty of crooks out there – I’m not one of them, but how should you know that; I’ve only recently joined the board and none of you know me. The fact that might give you pause for thought is this: rather than go bust when 2 of my clients did 3 years ago, I carried on trading and paid off 80k of corporate debt, much of it to small businesses who would have gone bust too if I’d taken the easier route – I’d have all that money in the bank, would be debt-free, and they’d be out of business. Having done that, I’m not going to sc**w up over the final 20k, for both moral and financial reasons. As a newcomer to the board, can I say that it would have been more welcoming if those people who plainly thought the worst and said so, had checked a few facts before leaping to judgement. Luckily I’m not shy or easily cowed, but some people who post on here will be and this is likely to be their best and final shot at getting help when they’re in a desperate situation.

Thanks again, Humdinger

-taff

It might have helped if you'd mentioned the fellow director.....Normally people who ask for \CCAs are looking to find a way of not paying a debt for whatever reason.
Anyway, congratulations, you got a result, well done

Humdinger1

Thanks Taff! Yes, even more important than any money forthcoming, the fact that the bank admits that all is not as it should be at their end that's a weight off my mind. After all the negative press, there are still some companies (even banks) that do the right thing. Humdinger

rtho782

The issue is the lack of paperwork, the fact that there is no reduction in interest for early payment is A-OK as it's a commercial loan and not regulated by the consumer credit act.

A subject access request is also pointless as business information is not covered, only personal information.

Other than that, congrats on getting out of paying back what you borrowed on a technicality I guess!

abby1234519

rtho782 wrote: »

The issue is the lack of paperwork, the fact that there is no reduction in interest for early payment is A-OK as it's a commercial loan and not regulated by the consumer credit act.

A subject access request is also pointless as business information is not covered, only personal information.

Other than that, congrats on getting out of paying back what you borrowed on a technicality I guess!

He's still paying it back? Just at a lower interest rate

Humdinger1

Abby

Yes, you're right; indeed I am paying it back. I've always said, even in my original post, that the loan needs to be paid back and I have no intention of defaulting on it; but obviously not clearly enough. Rtho782, there is a reduction in interest for early repayment because you can overpay without penalty, even before we agree compensation and a\ new loan for the balance outstanding at a lower interest rate. It's just the current extortionate interest rate that appears to have been applied without agreement (according to the bank) that I object to. If the bank thought I was aiming to default or was even trying it on, there's no way they'd have done what they are doing. Thanks again Humdinger

NYM

I really hope you've got that in writing..

So, the bank has said that it looks likely that the loan was activated without me signing anything, which is serious. Their document storage co can’t find anything, neither can they, neither can I. They have said that I’m in line for formal compensation and have forwarded a summary of the situation to the complaints team; I should know more next week. They have also identified the fact that some processes/checks regarding a fellow director weren’t carried out, which they find shocking and (in their eyes) lends weight to the probability that the loan wasn’t administered correctly either.