Should my loan have been CCA regulated?

sortingthingsout_2

Hi All

Any assistance with this would be very gratefully received.

I purchased a commercial property from a husband and wife. He loaned me part of the money (interest bearing) to buy it from him. Sounds like a funny way to do it but that's what he wanted.
A few months later my business failed-I was a sole trader. He told me that he had written the loan off as a tax loss. A couple of years later he died leaving the wife named as a 2nd charge on my house as the debt was secured on it.

I have not had any statements, demands for interest payments or contact since.

I then wrote to her and said that I would like the charge removed as I believed that it should have been regulated. I received a terse phone call from a relative informing me that under no circumstances would they remove it- although they admitted that they couldn't find any paperwork on the loan.

Am I right in saying that this loan from 2009 should have been regulated and it does apply retrospectively?

Again any help appreciated!

antrobus

sortingthingsout wrote: »

Hi All

Any assistance with this would be very gratefully received.

I purchased a commercial property from a husband and wife. He loaned me part of the money (interest bearing) to buy it from him. Sounds like a funny way to do it but that's what he wanted.
A few months later my business failed-I was a sole trader. He told me that he had written the loan off as a tax loss. A couple of years later he died leaving the wife named as a 2nd charge on my house as the debt was secured on it.

I have not had any statements, demands for interest payments or contact since.

I then wrote to her and said that I would like the charge removed as I believed that it should have been regulated. I received a terse phone call from a relative informing me that under no circumstances would they remove it- although they admitted that they couldn't find any paperwork on the loan.

Am I right in saying that this loan from 2009 should have been regulated and it does apply retrospectively?

Again any help appreciated!

How much was the loan for?

The obvious question would be, if you purchased a commercial property, from which you operated a business, and the business failed, why wasn't the property sold to clear the debt?

What has happened to the property since 2009?

sortingthingsout_2

Not sure is that is relevant? The security is a different property. Also I didn't operate a business from there. It was a commercial property-but not one I ran a business from. The security is on my own home. If the commercial property was sold-which it was that would not release the charge on another property.

My question really is about CCA regulation.

Thanks for the reply.

foxy-stoat

If the deceased person needed to be regulated then you need to pay the money back to him, as he shouldnt of lent in the first place - less any interest that you paid of course.

Do you have anything in writing from him when he was alive to write off the debt?

If a charge was put on the property then perhaps you should get a copy of the paperwork concerning that and go from there.

I doubt the administrators of the Estate will be able to release the charge with no consideration, they wouldnt be doing their job if they didnt pursue it.

DCFC79

sortingthingsout wrote: »

Not sure is that is relevant? The security is a different property. Also I didn't operate a business from there. It was a commercial property-but not one I ran a business from. The security is on my own home. If the commercial property was sold-which it was that would not release the charge on another property.

My question really is about CCA regulation.

Thanks for the reply.

Apologies but I'm just wondering why you would buy the property but not use it.

antrobus

sortingthingsout wrote: »

Not sure is that is relevant? The security is a different property. Also I didn't operate a business from there. It was a commercial property-but not one I ran a business from. The security is on my own home. If the commercial property was sold-which it was that would not release the charge on another property...

Your OP was unclear, but most people, where they to borrow money to buy a specific asset would, if they sold that asset, use the money to repay the loan. Particularly since, in your case, failure to meet the repayment terms could have let to you losing your home.

sortingthingsout wrote: »

My question really is about CCA regulation.
...

To which the answer to the question, how much was the loan for, would be very relevant.

BrassicWoman

a commercial loan would not be regulated by the consumer credit act, because it is commercial.

antrobus

BrassicWoman wrote: »

a commercial loan would not be regulated by the consumer credit act, because it is commercial.

Depends.

I'm relying on the following statement;

A credit agreement which exceeds £25,000 will not be a regulated agreement if it is entered into by a debtor or hirer wholly or predominantly for the purposes of a business carried on, or to be carried on, by them.

https://www.fieldfisher.com/media/1762852/Lending-to-individuals-203384921.PDF

Which is why asked the OP how much the loan was for.

TrickyDicky101

A minor note (as this wasn't the OP's question) but the point re writing off the loan as a tax loss has no bearing on the OP - this would have been for the purpose of the lender's tax return and NOT excusing the OP from repaying the debt.