Secured loan complaint

tm01

I had a secured loan against my property and I have recently sold my property. However the loan has not been repaid as the company didn't secure the loan against the property. I thought this was done automatically and have spent the excess cash on other debts to be debt free.
I now have found out the secured loan is still outstanding and I have no way of paying it off and I'm not working so can't repay it!
Shall I make a complaint and can they still Pursue me for the outstanding amount as clearly someone has forgot to register the debt with the land registry?
Please help on where I stand as I feel the loan was miss sold!

Thanks

Gaz83

Your post is a tad confusing. Are you saying that you attempted to get a secured loan, secured against your property, but that the company gave you an unsecured loan instead?

What company was it? And do you have any paperwork from when you originally took it out? Have you been paying it regularly since taking it out?

DCFC79

tm01 wrote: »

I had a secured loan against my property and I have recently sold my property. However the loan has not been repaid as the company didn't secure the loan against the property. I thought this was done automatically and have spent the excess cash on other debts to be debt free.
I now have found out the secured loan is still outstanding and I have no way of paying it off and I'm not working so can't repay it!
Shall I make a complaint and can they still Pursue me for the outstanding amount as clearly someone has forgot to register the debt with the land registry?
Please help on where I stand as I feel the loan was miss sold!

Thanks

Why do you think it was miss sold ?

Sounds like both you and the loan company are at fault.

Surely when you saw how much you got from the sale why did you not think thats a bit high ?

tm01

Yes I was given a secured loan which I thought I was getting but they didn't secure it against the property so when the house was sold it didn't get paid off.

I have been paying it for about 6 months but now can't afford to repay it.

tm01

That's true perhaps I should of realised but didn't, I assumed the loan would just be cleared as it was a secured loan!

Can they still Persue me to repay this loan?

Arleen

tm01 wrote: »

That's true perhaps I should of realised but didn't, I assumed the loan would just be cleared as it was a secured loan!

Can they still Persue me to repay this loan?

They can and most likely will. Just because someone screwed something up paper-wise doesn't make the loan invalid - it's not the movies.

Bogalot

When your conveyancer gave you their settlement statement it would have listed any debts that had been paid off. What did the solicitor say when you noticed it was not on there?

You remain liable for the debt. Where has the money you borrowed gone?

Candyapple

tm01 wrote: »

Yes I was given a secured loan which I thought I was getting but they didn't secure it against the property so when the house was sold it didn't get paid off.

I have been paying it for about 6 months but now can't afford to repay it.

How much was the loan for?

Who was the lender?

foxy-stoat

Bogalot wrote: »

When your conveyancer gave you their settlement statement it would have listed any debts that had been paid off. What did the solicitor say when you noticed it was not on there?

You remain liable for the debt. Where has the money you borrowed gone?

OP stated he has spent the money on other debts.

You need to just make the monthly repayments on this loan until paid, if it was taken out as a secured loan with a long term then it may be better for you to refinance the debt with a cheaper loan.

You must of thought, sale price, less mortgage, less settlement figure for the secured loan, less other debt, less Estate Agent and legal fees leaves what?.....and what you received would of be higher than you expected.

You would of had a statement from the solicitor with all the expenses and payments so did you not check it?

marjorie_sharples

Hi, even though they may still be able to press you for payments , as long as you do not secure this debt with your new property as you stated that you have sold, therefore i presume you now have new home with nothing to do with exciting loan, do not sign any papers etc may be seek citizan advise but don't worry your new home should be safe and you could pay back small amount as your out of work , Marj

mcpitman

tm01 wrote: »

I had a secured loan against my property and I have recently sold my property. However the loan has not been repaid as the company didn't secure the loan against the property. I thought this was done automatically and have spent the excess cash on other debts to be debt free.
I now have found out the secured loan is still outstanding and I have no way of paying it off and I'm not working so can't repay it!
Shall I make a complaint and can they still Pursue me for the outstanding amount as clearly someone has forgot to register the debt with the land registry?
Please help on where I stand as I feel the loan was miss sold!

Thanks

1. Did you not realise you suddenly had extra cash left over?
2. Why was the loan mis-sold
3. Be honest you are trying to wriggle out of paying off a debt really aren't you?