Uneneforceable & Voidable loans

homer_j_3

Absolut_Wench wrote: »

I may be barking up the wrong tree here, but I shall post my info then seek advice.

My parents took out a secured loan with Endeavour in July 2004. The loan amount was £40K, and its purpose was to consolidate existing borrowing. The loan was taken over 7.5 years.

I have submitted a SAR, and am awaiting a reply.

I have managed to find some paperwork, and was horrified to see the loan was front-loaded with £6200 of PPI. My focus was on a PPI reclaim, as my father was the only insured party, and the PPI would only cover for the first five years - and the PPI was probably invalid as he has pre-existing conditions. I understand they were told "no PPI - no loan". Until I get the tapes of the phone conversations I can't be 100% sure if it was definitely mis-sold.

The copy of the agreement is headed "unregulated credit agreement" - I didn't know what that meant until I looked up a few things on this forum (and if I'm honest my knowledge is sketchy at best)

I'm just wondering if this comes under the heading of unenforceable/voidable, and if there is anything I should be looking out for when I get the extra paperwork back?

I should point out that we had never heard of an unenforceable/voidable agreement until about a week ago - and my parents aren't looking to wriggle out of paying what they owe. I'd be happy if they could get the PPI back, but if this agreement is in any way dodgy and they get a bit more back, thats a bonus.

I'd be grateful for any help or suggestions.

Thanks

The issues with this loan is likely to be with the fact that there was no disclosure of commission paid to the lender for the sale of the insurance and/or the commission paid to the broker for selling this insurance.

Whilst I appreciate that there is a natural fear to be seen publicly saying, you want to pay your debts and not be seen as wriggling out of them. You need to think of it as that you want to ensure that your parents have not been taken advantage of by an unscrupulous lender who has not had the responsibility of checking that their agreements are lawful.

From the date of your agreement, I believe that it is likely that you will have issues with the agreement and these should be looked into.

homer_j_3

simmyboymartin wrote: »

i have read this thread with interest, i have been posting my problem for months and getting mixed messages, my situation is that i had a loan for £10k plus £2,346.60 PPI in 2001, tried to claim on the PPI last August only to be told that the loan PPI finished when the loan did, according to statements there was still over £2,700 left to pay on it, to sum up requested a copy of the loan agreement from bank, they stalled for for 9 months and after involving FOS they told me they didn't have any proof of loan agreement , the existing amount that they said i owed just vanished and that is that as far as the bank and the OFS are concerned, i am now considering taking them to court, i consider the loan to be voidable and that all interest paid on the loan should be repaid,

LOAN INCLUDING PPI - £12,346.60
REPAID - £19,250.28
OUTSTANDING - £2,700 (NOW CLEARED BY BANK)
AMOUNT REQUESTING TO BE REFUNDED - £6,903.68

In my opinion if the bank thought they had done nothing wrong they would not have cleared that amount off,does anyone think i am wrong please !!

If there is no credit agreement, then the loan becomes unenforceable. The start date of the loan has not been mentioned but it could be worth looking at on the basis that the loan is unenforceable and all repayments made should be returned.

Absolut_Wench

Thanks homer_j.

I've asked my parents and they don't remember commission being mentioned during the application. The credit agreement just says:

Loan amount £40,000

Optional single payment protection insurance £6200

Total loan amount £46200

Interest rate 10.25% per annum, fixed for the first <blank - not filled in> months (the initial period) and thereafter variable - see loan condition 2 overleaf

Monthly instalments £737.72

Estimated repayment period 90 months

APR 10.7%


We're waiting for the SAR to come back, then I might have more information as regards commission, etc.

homer_j_3

cmac wrote: »

Hi Homer_j
Tiggrae suggested I try this forum as ther are other issues with my case, and with reading this site I am hopeful.
Here goes with the story
We had three loans with Barclays I am trying to reclaim PPI on all three.
The one in question was taken out on 20/01/05 with PPI
we are both self-employed the bank account in question is in my OHs name only
Cash loan...............................................Premium loan
amount of loan .......2,035.80..........................1,201.80
monthly repayments....118.93............................479.40
No of paymenta................60.............................28.02 = 146.95

Insurance premium @ a rate of 5%

I sent my first letter dated 14th jan 08 to Ireland the address on the Barclayloan Protection form.
Second one to Leicester as ireland were unable to help.

The claim for mis-selling has been rejected on the basics that my OH made a successful claim on the 2nd April 07 They paid 1 month and this was paid into his bank account I think not the loan ??? sorry its really confusing I am at a complete lost with it all.
He was off work for a total of 5 months with a very badly broken leg.
I have requested why only 1 payment made and details of when it was made

We were finanically suffering at the time , no sick pay for the self-employed, and to cut a long story short missed a few payments on a few things, getting charges left, right and centre.
So duly went to the bank to ask for some help or guidence - how stupid were we?
She told us the best thing to do was consolidate (ok in theory) and put everything into our morgage reserve fund. I ask what the interest on this was only to be told " not to worry about it just pay it back as soon as you can "
We now pay £70 a month and the interest was £63!!! now £53.87!!!
when I discovered this I tried to ring her on the number she gave us only to NEVER get it answered or even be able to leave a message. It just rang and rang even tried the bank its self left messages there for her to contact us for it never to happen. Finally gave up.

The loan was closed on the 18th June 2007 and £3612.60 transfered to morgage reserve + an insurance refund of £ 325.72.
interest charged £15.32
I have sent a SAR request and the £10 fee As I suspect we wernt treated fairly. The deadline for SAR is 7th July
there were other things on morgage reserve again at there suggestion and the total at present is £9090.72
I really hope you can help me with this
Thnks in advance

There could be various issues in there but there is an awful lot of information that I am struggling to understand.

How much was the loan with PPI for in total? The figures of just over 3k seem to have very expensive repayments?

cmac

homer_j wrote: »

There could be various issues in there but there is an awful lot of information that I am struggling to understand.

How much was the loan with PPI for in total? The figures of just over 3k seem to have very expensive repayments?

Hi homer-j
thanks for responding and sorry I forgot that bit

APR14.9%

amount of loan.............Cash loan..5,100....Premium loan..1,201.80
It also says above this bit
the loan is in two parts with the premium loan being the single premium payment to purchase barclayloan protection

cmac

I dont seem to be able to edit my last post being a bit blond to-night??
the Total amount payable .............7,135.80..............1,681.20

homer_j_3

your figures do look like you may have a claim. Apologies for the delay in responding.

homer_j_3

bump for new posters

Absolut_Wench

Giving this one a bump as I have news.

Well, I have the SAR we've been waiting for.

Lots of paperwork, but much of it is duplicates - wage slips etc.

It looks like there was a broker commission paid(over 3K). I've found reference to it in one set of documents, but another set says 'no commission'

No info on the PPI - just a bald statement saying how much PPI was added, nothing to say who the insurance brokers are (although I suspect it was Hamilton).

No discs with recordings of phone conversations - even though most of the application was by phone, with documents for signing being sent through the post.

What worries me most, as someone who has worked in a highly regulated environment (pharmaceutical manufacturing) is the amount of info thats been obscured by thick black marker pen scribbles :eek:

I'd have got the sack for doing that in any of my documentation - disguising data is considered fraud where I come from :eek:

So, on we go

Dicklad

Hi,

Is there anything i can do with regard making a claim??? And how would i go about it?

Many thanks