Loan declined but money received.

Puddylove

Gareth29 wrote: »

Puddylove I have been paying it back for the past 6 years. I came on here for advise on the situation of the loan not being under contract and what I can do about it not get abuse off people.

So, you applied for a loan, and were initially refused, but they paid you £25k in error. They asked you to pay back, but you refused and spent the money instead.

They then offered you the loan, which you accepted and repaid the money for a while, before you decided not to bother. At this point you were defaulted.

Now, though, it has come back to bite you as you realise it's hard to get a mortgage with a history of either stealing £25k or defaulting on a loan.

Your solution is to say 'The bank just gifted me that £25k, make them go away' and you wonder why some of us think you're daft at best, dishonest at worst?

sourcrates

Question :

Did you sign a credit agreement (CCA) for this money and was it countersigned by the bank, were you provided a copy of this agreement and made aware of a 14 day cooling off period ?

If yes, you are liable for the money.

If no, you are not liable for the money.

Not taking sides here, just using the basic facts, unless you have a properly executed credit agreement it's very difficult to prove the money they gave you was not a gift.

Unless they could provide other proof that this was in fact a loan, and not a gift.

This is how a court will most likely view it, and the creditor would probably lose.

fwor

sourcrates wrote: »

unless you have a properly executed credit agreement it's very difficult to prove the money they gave you was not a gift.

I'm not a legal expert by any means, but surely this can't be right, can it? In the absence of proof, surely the courts would believe what is most credible with the facts available.

The fact here is that the lender is a loans company who's sole business (as far as I can see) is lending money to people. It's not even vaguely believable that this company would gift £25,000 to someone with whom (as far as we know) the company has had no previous association.

If asked to choose between the probability that the company intended to transfer the money as a gift, or that they transferred the money as a result of an administrative error, I can't see them choosing to believe that it was a gift.

Puddylove

It's not remotely credible to describe the money as a gift - and the law seems not to be on OP's side. He's already acknowledged it was a loan or are we expected to believe that he gifted some money back every month?

OP, your best bet is to contact one of the debt charities for advice.

And this link (if it works) might clarify.

http://www.money.co.uk/guides/can-you-keep-money-accidentally-paid-into-your-bank-account.htm

sourcrates

The company would need to prove the loan was not a gift, they messed up big time by declining the OP then giving him the money.

Proof is usually in the form of a credit agreement, if they don't have that, it would be difficult to prove liability.

If they have other evidence, fine, in the end, you must convince a judge your argument is correct.

sourcrates

fwor wrote: »

The fact here is that the lender is a loans company who's sole business (as far as I can see) is lending money to people.

Exactly, so the first thing the judge would ask is......... do you have a copy of the credit agreement relative to this case ?

No mlud, we don't, we accidently transferred the money to the debtors account without obtaining his signature on a credit agreement.

Ah, do you have any other evidence to put before the court ?

No mlud, we don't.

Case dismissed.

Arleen

sourcrates wrote: »

Exactly, so the first thing the judge would ask is......... do you have a copy of the credit agreement relative to this case ?

No mlud, we don't, we accidently transferred the money to the debtors account without obtaining his signature on a credit agreement.

Ah, do you have any other evidence to put before the court ?

No mlud, we don't.

Case dismissed.

I can't find a reported case that would say that, got one to point out? Because that would be a perilous precedent to set, where a clerical error leads to 25k gift - just because the person making a mistake is a lender, and not anything else, where it would be clear that the money is owed back and there is a precedent set for such cases.

I understand where you come from, as lack of CCA will make the debt unenforceable, but this isn't a standard case, and would likely have to go to the judge for actual consideration, not simply fall under this rule.

tetley

I don't normally reply on here, but by god you have made me mad with your self righteous attitude.
"Some one from the loan company rang me that day to ask for the money to be put bank in to the account. I did not trust a random person asking to put money in to an account that I did not know nothing about"
What a load of rubbish that statement is, you knew who is was, and you knew why they were ringing. I hope you get sent down for fraud

Raven42

If a bank put a million pounds in my bank tomorrow due to an admin error that money is not mine, most people know that rule.

Where the poster is correct is they are unable to enforce the terms of the loan (Interest) therefore the logical conclusion is you owe the bank the difference between 25K and what you have already paid.

The reason you've unfortunately riled many here is you want your cake and eat it. Many here would give their right arm for 25K interest free to help them back on their feet and you're there whinging that's not good enough.

Clive_Woody

sourcrates wrote: »

Exactly, so the first thing the judge would ask is......... do you have a copy of the credit agreement relative to this case ?

No mlud, we don't, we accidently transferred the money to the debtors account without obtaining his signature on a credit agreement.

Ah, do you have any other evidence to put before the court ?

No mlud, we don't.

Case dismissed.

The loan application from the OP and the regular repayments might be considered evidence that this was a loan and not a very generous gift from Tesco bank. Quite possibly the OP also provided his electronic signature on the loan application too agreeing to repayments if the loan was approved.

There may have been errors procedurally, which most likely mean interest cannot be charged, but I suspect proving the transfer of money from Tesco to the OP was not a gift would be quite straight forward.