Unenforceable loan agreements

thegooner83

I have a few payday loans which I could do with getting away from. As people who have them know, they are difficult to get away from.

How do I check everything is ok with mine? In other words, what do I look for inorder to be able to void the agreement

annieadvisor

Please be aware that the agreement may not be voidable. The question that is being asked here is is my agreement unenforceable? If you signed an agreement before April 07 it must comply with prescribed terms some of these being - does it state the word credit? is ppi condition of getting the loan in the first place, was it inappropriate? and so on. If it does not contain these terms then it may be unenforceable. That does not authomatically made it void it just means that if a judgement was sought it would be stayed and you could ask for a final settlement of a lower amount. Payday loans are scum and to my mind there wont be an agreement signed or otherwise. They claim they are regulated agreement under the CCA so they must produce an agreement in that case (not sure where you stand with the application done over the internet).

for those of you who have asked the question, yes I have had debts sorted out/written off using the unenforceabiltiy argument but it is not an easy option and could be costly if someone counterclaims. The reality is that most paperwork is shredded and therefore cannot be proved. you must be aware that, if you do not have a case charges will continue to add on and defaults could be registered against you.

if nothing else i say makes sense, promise me you do not use one of the fee charging companies plastered over your local radio, they are crap and rip you off.

i am a debt advisor with CAB

kurjam

fanofmartin wrote: »

HI kaia,

Is your loan with Citifinancial? I'm going to claim back the PPI on a aloan I have with them, basically I was told I had to have it to get the loan and it was standard procedure. This was in 2002. My OH and I have always thought that the loan was for 7 years and have been looking forward to the day it is paid off. We looked at the agreement and it states 240 monthly repayments, thats a lot longer than 7 years, on a 28,000 loan (inc ppi) we are paying back £78,000 !!!!!! It is a secured loan and because our house is shared ownership our half at the time was not equal to the full amount of loan. We shouldn't have been able to get it. It does not state that we will pay back £78,000. The apr is 15.4. Is there a big mistake on the form or has it been completely mis sold.

Even though we have paid back £19,000 our settlement is still £28,000

we have a loan with citifinancilal which is fully paid in august next year, thank godness.
we should be paying £178 for 48 months total £8544
but we pay weekly £44.50 for 48 months ( 208 weeks) total £9256
i have quiered this this them as i should finish the loan before the date on my agreement, but they state i must still pay till august 2010, surely this is wrong as i will have over paid....
what do i do ?

jaydut

Ok heres a good one for you all to ponder.........
A few years back money was borrowed against the house for some improvements (Halifax) and an extension which was added to the mortgage, during this time a couple of smaller loans were taken out for other things round the house these were personal loans so I suggested to my wife we conslidate them into one loan and borrow a little more to pay some other debts off.My wife phoned the Halifax and a sum of £23000 was agreed the advisor suggested I also go on the loan to make it a joint application and better chance of acceptance as I was the main earner in the house, the loan was accepted and we have been paying it for a few years now.
The other night I had the paperwork out to see how much longer we had left to run when I noticed the loan was secured against the house which we did not ask for I was under the assumption we had applied for an unsecured loan, the fact of the matter is I have signed this agreement and have no interest in the house at all i`m not on the mortgage not on the deeds etc so how can they sell me a secured loan??
Were do I stand?? is it enforcable??

If so can I go round borrowing money against any house I like the look of!!!!

Malky

jaydut wrote: »

I was under the assumption we had applied for an unsecured loan

There's your big mistake right there. Sorry to be so blunt to point it out but it's your responsibilty to clarify these things when applying for a loan.

jaydut

Malky wrote: »

There's your big mistake right there. Sorry to be so blunt to point it out but it's your responsibilty to clarify these things when applying for a loan.

Why would i assume anything else when i dont own the house!

Malky

You owning the house has nothing to do with it. I'd hazard a guess that the Halifax asked for a joint loan to cover themselves in the event of your wife being unable to pay the loan back herself.
It looks like the Halifax have extended the original loan and consolidated rather than giving you a new personal loan.
Didn't you ask at the time over how many years you would be paying and the payment per month? This may have given you an indication as to what kind of loan was being offered. You may have known at this point if it was a personal or secured loan.
What about mortgage statements for the last two years? Didn't you notice anything on them with the extra £23K?
What about bank statements? A personal loan payment would be listed separately from a mortgage payment.
Just trying to find out how much info you have to hand first to see if you may have a case against a mis-sold agreement.

jaydut

So I can borrow against anybodys house?? how can I give something for security I dont own?? we wanted 2 unsecured loans consoloadating into one unsecured loan. What Mortgage statements Idont have a mortgage!

Malky

It does seem strange how they managed to do this. You should give them a call. Maybe you've signed as a guarantor perhaps?

ihsasum

bobpitbull wrote: »

If Richard Branson's companies suffer the same difficulties as individuals, he'll probably get a cash handout from the government in order to survive... just like Northern Rock, Nissan, Lloyds, Barclays and so many other companies that have taken people for a ride for so long. Meanwhile, as his company is failing and costing the taxpayer even more money, he'll increase his rates and pocket a bonus in the tens of millions at the same time.

I don't believe that Barclays received any government financial support.