Loan complaint, ombudsman can`t help, ideas?

System

This discussion was created from comments split from: DMP mutual support thread part 13 !!.

tksnota

Hi 

I don’t know where to post this reply I got from the financial ombudsman 

“As you’ll see, the Ombudsman has decided that your complaint isn’t one we can look into. Because an Ombudsman’s decision is our final stage, we can’t take things any further”

I raised a complaint to this financial institution - The Enterprise Fund Limited trading as GC Business Finance - because I took out a personal loan for a business that I’m a shareholder but not a director. I found out that I shouldn’t been awarded a loan since only directors could avail of it which had been the basis of my complaint with the financial ombudsman. 

Now I have these problems 
1. I’m stuck with the personal loan and the ombudsman couldn’t helped me. I asked them which government department I could raised this complaint but no specific answer

2. The company who provided me the loan wouldn’t proceed with the default even after not paying for 3 years.

Hope someone can assist me…

MattMattMattUK

tksnota said:

Hi 

I don’t know where to post this reply I got from the financial ombudsman 

“As you’ll see, the Ombudsman has decided that your complaint isn’t one we can look into. Because an Ombudsman’s decision is our final stage, we can’t take things any further”

I raised a complaint to this financial institution - The Enterprise Fund Limited trading as GC Business Finance - because I took out a personal loan for a business that I’m a shareholder but not a director. I found out that I shouldn’t been awarded a loan since only directors could avail of it which had been the basis of my complaint with the financial ombudsman. 

Now I have these problems 
1. I’m stuck with the personal loan and the ombudsman couldn’t helped me. I asked them which government department I could raised this complaint but no specific answer

2. The company who provided me the loan wouldn’t proceed with the default even after not paying for 3 years.

Hope someone can assist me…

Was the loan in the name of the Ltd, or your personal name?
Were the funds paid into the businesses account, or your personal account?
If the loan was in the name of the business, did you sign the form and state that you were either a director, or that you were a signatory for the bank account when you applied for the loan?

tksnota

Loan was under my name but the documents submitted are both company and mine 

Funds paid into my account 

No signature. The loan was under my name

Altior

The OP has raised threads on the past around this topic, eg Question on Business Loan — MoneySavingExpert Forum

This appears to be the relevant website and complaints process:

Complaints Policy | Business Finance

The loan is obviously historic, but there's no evidence on the website that this organisation provides personal loans, outside of business or starting up a business. Of course it may have been different at the time of applying (though unlikely).

I feel like the OP thought they were applying for a business loan (even though they weren't entitled to). Going to the eligibility page, it's palpably business only. 

tksnota

It should be business loan but the company send the funds to my account not to the company’s account. Can I consider it as a personal loan?

I raised the complaint directly to the company and their decision that the loan was approved based on proper guidelines 

I’m wondering if not the FCA what other government agency I can escalate this complaint?

MattMattMattUK

tksnota said:

It should be business loan but the company send the funds to my account not to the company’s account. Can I consider it as a personal loan?

In your head you can consider it as anything you want, legally, no, it is almost certainly not a personal loan. From reading your previous posts you do not seem to understand the difference though. A private individual can take out a personal loan or a business loan, just because it is a business loan does not mean that a separate limited company is liable for the debt. You are personally liable for the business loan you took out, in your name, with the funds transferred into your personal account.

tksnota said:

I raised the complaint directly to the company and their decision that the loan was approved based on proper guidelines 

I’m wondering if not the FCA what other government agency I can escalate this complaint?

On what basis do you think you have a valid complaint?

The reality appears to be that you took out a business loan as an individual, there are no rules/laws against that. You then gave that money to a limited company. You have no argument with the lender. If you want to argue with anyone it would be the limited company you transferred the money to. What agreement, if any, did you make for those funds to be returned to you and why is that business not repaying the money you lent it?

tksnota

The business will be closing soon which is the reason I’m not getting paid

What’s the likely outcome if the loan hasn’t been paid? No payment close to 2 years.

Any reason why this loan don’t appear on my credit file?

Currently, I only get debt collection letters. 

MattMattMattUK

tksnota said:

The business will be closing soon which is the reason I’m not getting paid

Is it insolvent?

tksnota said:

What’s the likely outcome if the loan hasn’t been paid? No payment close to 2 years.

The lender will likely commence legal proceedings against you to recover the money lent.

tksnota said:

Any reason why this loan don’t appear on my credit file?

The lender does not report to some/all CRAs, nothing beyond that.

tksnota said:

Currently, I only get debt collection letters. 

When they get fed up of you not paying they will send a Letter Before Action, followed by them initiating court proceedings, you then either pay or they obtain a CCJ, which will go on your credit file if you do not pay it within thirty days. After that they would potentially go to the enforcement stage, which escalates their recovery efforts. 

tksnota

MattMattMattUK said:

tksnota said:

The business will be closing soon which is the reason I’m not getting paid

Is it insolvent?

tksnota said:

What’s the likely outcome if the loan hasn’t been paid? No payment close to 2 years.

The lender will likely commence legal proceedings against you to recover the money lent.

tksnota said:

Any reason why this loan don’t appear on my credit file?

The lender does not report to some/all CRAs, nothing beyond that.

tksnota said:

Currently, I only get debt collection letters. 

When they get fed up of you not paying they will send a Letter Before Action, followed by them initiating court proceedings, you then either pay or they obtain a CCJ, which will go on your credit file if you do not pay it within thirty days. After that they would potentially go to the enforcement stage, which escalates their recovery efforts. 

You are really a big help.

I have a few more questions.

Can the lender delay the default as long as they want?  Is there any legislation to tell them after such time of non-payment then a default should be added in my file also back dated?

I want to ask about the CCJ which might lead to restriction on my property. If I’m a co-owner of the property then a restriction should only apply and being considered as a consumer loan any amount stated on the CCJ will not incur any yearly interest. Are my assumptions correct?

MattMattMattUK

tksnota said:

MattMattMattUK said:

tksnota said:

The business will be closing soon which is the reason I’m not getting paid

Is it insolvent?

tksnota said:

What’s the likely outcome if the loan hasn’t been paid? No payment close to 2 years.

The lender will likely commence legal proceedings against you to recover the money lent.

tksnota said:

Any reason why this loan don’t appear on my credit file?

The lender does not report to some/all CRAs, nothing beyond that.

tksnota said:

Currently, I only get debt collection letters. 

When they get fed up of you not paying they will send a Letter Before Action, followed by them initiating court proceedings, you then either pay or they obtain a CCJ, which will go on your credit file if you do not pay it within thirty days. After that they would potentially go to the enforcement stage, which escalates their recovery efforts. 

You are really a big help.

I have a few more questions.

Can the lender delay the default as long as they want?  Is there any legislation to tell them after such time of non-payment then a default should be added in my file also back dated?

The do not ever need to default it if they do not wish to and no, when they default it there is no point in time they need to state that it was in default from.

tksnota said:

I want to ask about the CCJ which might lead to restriction on my property. If I’m a co-owner of the property then a restriction should only apply and being considered as a consumer loan any amount stated on the CCJ will not incur any yearly interest. Are my assumptions correct?

You need to stop thinking you can somehow claim this is a consumer loan. It is not a consumer loan, it was never a consumer loan, it will never be a consumer loan, is that clear enough?

Interest can be charged on a CCJ at 8% pa by default, unless the contract states a higher rate. That means that if the contract for your commercial loan states a higher interest rate then that would apply.

Once a CCJ has been obtained then enforcement actions can commence, attachment to earnings, charging order, bankruptcy etc.. What they do will depend on firstly how much you attempt to cooperate, which so far from what you have said seems to be a total unwillingness to even acknowledge the debt is yours to pay and whether you have assets for them to go after, owning a property means that you do, so they will not just walk away.