Help! Family Dispute Over Loan

sonofmerton

the only legal thing going on here is the father's loan with the bank. unless anything is written down the only person anyone could legally come after is the bank v the father.

pay up what you owe by increasing the standing order amount so there is a paper trail. any argument after that will be between the father and the bank. i would get him to write a full and final settlement letter too but i don't think he will do that.....   

if he came after you for more monies in the future, as long as all the standing order amounts matched/closely what the car costs, any small claims court would throw out any claim from him. the only thing you could lose is your relationship with your father. 

[Deleted User]

Sc0t88 said:

His dad has now said he contacted the bank today regarding a lump sum part payment and they have rejected this and said he can’t refinance the loan so he is now going to take a trust deed out. There is definitely something going on that he’s not telling us about but we are still sticking to our guns and paying back what we owe and leaving him to do what he wants! As I said previously he is insulting our intelligence with these lies, what bank refuses to take back money they have loaned you! 

This makes less and less sense. There is no need to refinance the loan. Your partner pays his father the money owed. Your partner’s father then has the choice of paying that money towards the loan with the bank, saving it or spending it. 

If he’s talking about a Trust Deed his finances must be in a right pickle but that has absolutely nothing to with him taking the money your partner owes him and paying it to the bank. 

naedanger

If I was in your partner's position I would not want my father to feel (even wrongly) that I was acting badly in response to the favour he had done for me.

Therefore if I could not convince my father that he was no worse off by accepting my early repayment then I would stick to the originally agreed terms. (So the deciding factor would not be whether my father was no worse off, but whether he also understood this to be the case.)

sourcrates

I`m unsure if the father is been deliberately evasive, or genuinely doesn't understand how banks and loans work.

You say he took out further funds for home improvements, so the assumption here is that he`s a homeowner, now he`s talking about a trust deed.

Well, I really hope he take`s good advice on this, as there are two types of trust deed, protected, and unprotected.

One is legally binding, the other is not.

Even in a protected trust deed, its possible to lose your home, at the very least it would have to be signed over to the trustee, it also depends if there is any equity in the property, to be honest, this is not a good option for any homeowner to take.

I really hope he understands what he is doing here.

Also, if he has gone or is going insolvent, any money you pay to him will be swept up by the trustee, and it will be gone.

I`d think this through very carefully, that money may be better retained by your partner, for now at any rate, until the situation is better clarified.

Sc0t88

He doesn’t own a home he is renting. We think the home improvement reason was a lie as we’ve since found out that the full loan amount was £20k of which £6500 was given to my bf. We’re paying him back the remaining balance on what we owe and any bank charge for early repayment then he can do as he pleases.

warby68

I wonder if your current repayments to dad are actually the full repayments to the loan and that is why dad doesn't want a lump sum reduction.

If that's the case then he has had £13.5k for whatever reason but isn't having to actually repay it for as long as your payments to him cover the monthly payments to the loan. If a lump sum was made he'd the immediately need to find the next monthly repayment and anything thereafter.

Obviously you can still give him the lump sum and he can feed it to the loan but with someone who is cagey about the true position, I wouldn't be keen on handing lump sums over at all without a concurrent something in writing confirming the original loan and that it is now fully repaid.