Uneforceable loan agreements

sarahn2008

6 months ago i sought free legal advice with a known company on the internet regarding an incident i was involved in, since then i received a call from a company that had been passed on my details telling me if i had any loans then they could check the agreements to check whether they are enforceable or not.
So i sent my details of my two loans to them and they have come back saying there are 5 breaches on one of them. They have said the action they can take is for me to sign paperwork agreeing for them to take the company to court to get the loan written off and for them to approach the company for a copy of the loan agreement for themselves.
In the meantime, they have advised me to stop paying the loan for the next 6months (or until the case is settled) and pay into their client account until the loan defaults so they can take it to court. Just to mention they advised that this is a no win no fee basis, the 6 month payments to their client account will be held until the case is settled if not it will be returned.

I have a few concerns with this and would like to find out how to go about this?
I don't fully know if this is a genuine company as i have only dealt with them by telephone and post, How can i find out if they are?
Also i am not happy to pay 6 months payments into the client account before there is even a court case or even a settlement?
I am worried that this could be a scam and leave me out of pocket and with a bad credit file.
I also hold a mortgage with the company the loan is with and worry that if this does go ahead then they can have the right to cancel my mortgage arrangement?

Can someone please give me their guidance on where i should go from here? Should i seek further advice? Is this just a scam?

Thanks

DaleyGG

Forget the whole idea, even if it was legit, there is no need for you to pay money into their account. Stopping the direct debit will end up making your problem worse.

Coupon-mad

sarahn2008 wrote: »

Can someone please give me their guidance on where i should go from here? Should i seek further advice? Is this just a scam?

Thanks

Welcome to MSE. Yes it's a scam/ripoff. Why pay someone to do this for you?

You are on the right website though, for FREE advice on such matters. I hope you get some useful replies on this thread and can sort it out without paying out any more cash.

Best of luck!

standupguy

It would be interesting to know what the breaches were?

The bottom line is did you borrow the money and are the payments what they said they would be?

If that is the case why try and get out of paying a loan because there may have been an admin error?

Your credit and relationship is good with your lender - why spoil it and your credit record?

My advice is to stay well clear of this sales pitch

sarahn2008

Apparently the breaches are to do with the APR.

I understand that i borrowed the money and can't just get rid of it.

I had just heard that this is possible to do and many people had managed to

sarahn2008

Just to make a point, the company looking into all this are a solicitors firm

petermb_2

Do not stop payments. Do not pay money to a third party company instead of your lender. This sounds quite alarming to me being a professional in this business. I have not heard of anything like this but would stay well away from it.

beaujolais-nouveau

sarahn2008 wrote: »

6 months ago i sought free legal advice with a known company on the internet regarding an incident i was involved in, since then i received a call from a company that had been passed on my details ...
So i sent my details of my two loans to them and they have come back saying there are 5 breaches on one of them. They have said the action they can take is for me to sign paperwork agreeing for them to take the company to court to get the loan written off and for them to approach the company for a copy of the loan agreement for themselves.

In the meantime, they have advised me to stop paying the loan for the next 6months (or until the case is settled) and pay into their client account ...

I have a few concerns with this and ...

Run away - fast. Sign nothing. They cannot be genuine - no genuine financial adviser would tell you to stop making your loan repayments. Why don't you read the loan agreement and write to the lender with your concerns, and then come onto this forum and let the rest of us help you with dealing with the lender's response? Your defaulting on repayments on your loan might cause the lender to recall the entire loan. And I guarantee that any money you paid to this other company you would never see again. Of course it is a scam - I can't believe that you are even giving this company the time of day.

fatbelly

How can there be five breaches 'to do with apr'?

Even if there were there is no guarantee that a court would declare the signed agreement to be improperly executed and unenforceable.

If you were facing repossession, this might be worth a last-ditch attempt at defence using a decent company like Stephensons.

But in your case the whole thing sounds bizarre.

sarahn2008

Thank you for all your feedback.

I'm glad i sought this advise, as i HAVE NOT signed anything and certainly WON'T.

All they have done is looked over agreements to the loans and come back to me with what i have told you.

Coupon-mad

sarahn2008 wrote: »

Thank you for all your feedback.

I'm glad i sought this advise, as i HAVE NOT signed anything and certainly WON'T.

All they have done is looked over agreements to the loans and come back to me with what i have told you.

Glad you didn't proceed with those rip-off merchants.:D

Now you are used to being on MSE, why not stay here posting on the forums and see if anyone can help you manage your debts on a more longterm basis?

Why not read some previous posts about unenforceable agreements, Consumer Credit Act info etc.? Do a search for certain keywords above, and click on the box to 'search forums'. You keywords should be minimal (e.g. just the word 'unenforceable' would do, without capitals as this affects the result).

Then just read whatever threads seem relevant, asking questions on recent threads etc or starting another new one yourself if you can't find the answers you want.

Then there are the debt-free-wannabe threads which may be relevant for you to read snippets from as well if you are trying to cope with your loans.

Just join in, you are very welcome.