Uneneforceable & Voidable loans

petermb_2

12 days. That is the prescribed duaration

lemonade_lifestyle

Just a query, please don't jump on my back or accuse me of wriggling out of paying for things.....

I am currently using A company to claim for an unenforecable Northern rock together mortgage....

Now if I was to be successful in my claim, what are the chances of Northern Rock washing their hands of us and asking us to take mortgage elsewhere??

fatbelly

lemonade_lifestyle wrote: »

I am currently using A company to claim for an unenforecable Northern rock together mortgage....

If it's unenforceable, it means it cannot be enforced. Why should you want to pay it off?

However, I understand the concept of unenforceability in relation to secured loans that are governed by the Consumer Credit Act, but not in relation to mortgages, which are governed by the Administration of Justice Act.

What arguments are A company using? Can you explain?

Absolut_Wench

I just wish A Company who are meant to be dealing with my parents loan would get back to us. Two months since the delivery of their application was confirmed, and not a sausage from them.

No reply to emails, nobody answers the phone ... nothing

Tassotti

I know this site is about money saving, but I never thought it was about money-stealing.

If a company has lent you money, then pay it back, with interest.

If the insurance is disputable, the go ahead, but, as far as I can see, it is theft.

morgan8080_2

Its not theft, if the loan company havent played by the rules and charged things that they shouldnt or made you pay more than you should why should you not challenge it. Perhaps your a little bitter!

Sol00

I'm going to send a letter to Welcome Finance today re an alleged unenforceable loan.

They have charged interest on top of their 'acceptance fee'.

I_know_my_ABC_and_my_CMYK

homer_j wrote: »

As you are probably aware, my presence on the loans board has increased substantially over the last few weeks and have been been posting regulalry about something that has been kindly brought to my attention by another MSE poster and the company that he works for.

As the title of the post suggests, it has been recognised that there are laws within this country that have been implemented to protect people from unscrupulous lenders and their unscrupulous lending practices. Martin has been made aware of these issues and is currently investigating so please be aware that there should be some form of response within the next few weeks to this but wanted to put a post up here for people to find all the information that I have and to refer to it in one place rather than over several different posts.

First of all, if you have currently or previously had any of the following types of accounts then there have been issues identified as having issues with the contracts and agreements running them:

- Secured loans prior to 2005
- Car loans that PPI or Gap insurance
- Consolidation Loans with PPI
- Home improvement loans with PPI
- All mortgages prior to 1998 that were arranged through brokers/advisers
- Some mortgages between 1998 and 2005 which have been arranged through brokers/advisers.
- Northern Rock together mortgages up to 2005 where the unsecured amount is under 25000
- Northern Rock together mortgages with no limit on dates where unsecured amount is over 25000.

If you have or had any of these agreements, there is a strong possibility that the contract was either unenforceable or voidable and you may be able to take action. REMEMBER - The agreement does not have to be live today, it could have been one that you have had historically.

Unenforceable loans:

If your loan is deemed to be unenforceable, it basically means that the loan no longer exists until it can be proven otherwise. Often unenforceable loans are the result of incorrectly completed credit agreements. "Wilson V Secretary of state" was a case that outlined this fact. The lady had pawned her car as security for a loan of £6900. The loan was not repaid and the client went to court to challenge the un-enforceability of the loan she had been given. With an initial loss and a subsequent appeal, it was deemed that the Consumer Credit Act 1974 had been written with a view of protecting the financially unaware. The result was that the lady ended up with her car back and all the repayments made being returned to her. The lender in this case had effectively lost £6900 as a punishment for not following the rules under which their loans were regulated.


Voidable loans:

When you take a loan out, usually the agreement will be that you will have been lent a specific amount and you will pay this back with a set amount of interest on top of this. Where an agreement becomes voidable, the lender loses the right to charge any interest on the amount lent and the the debt becomes just that. So whether it be a current debt or an old debt, the lender has to take what payments you have made and reduce your debt by that amount, which can result in your debt being reduced, no debt existing or you receiving money back for the overpaid amount.

So what makes an agreement voidable? Normally it will be the payment of secret commissions and the fact that where something like PPI or GAP insurance has been taken out, upto certain dates, lenders did not disclose the financial arrangement that they had with the insurers and or the brokers. A case of "Wilson and another V Hurstanger Ltd" will prove this if you read section 39.


Repossession:

In the early 1990's, this country experienced roughly 200,000 repossessions. Due to some of the issues found in the cases mentioned above, I have learnt that it has been recognised that any of these 200,000 properties that had mortgages on them arranged by an adviser or broker, it is possible that the homes of these people were taken illegally due to the fact that the loan was wrong to start with.

The law, I believe, allows any successful claims of this type to claim in compensation from the lender the lost value in asset so effectively, once the loan has been audited and voided to work out what the "real" debt was then this is set against what you have paid already and then they wee what your property would have been worth in todays money and calculate the compensation due.

All I refer to today relates to current or old agreements that you, your friends or family may have had. As a consumer site, I believe that this topic should comfortably sit as an acceptable discussion and that support should be given to those people who want to see lenders lending responsibly and more importantly, within the law. The law recognised that techniques could be put in place to "dupe" the borrower into making uninformed decisions and sought to protect people like you and I. Lenders have decided (whether intentional or not) to ignore these protections put in place and now will be the time where people will see this and hopefully take action.

Taking Action:

The rules of this forum do not permit me to advertise any one company and Martin himself has stated that he likes to see people doing this for themselves. This is fine when you are arguing with banks where their loss probably equates to less than a half weeks wage for some of the directors of these lenders.

When you could be looking at more serious amounts of money for the bank, you will understand why they would rather pay some legal eagle £00's per hour to keep you at arms length for as long as possible. It is with this reason where I believe you have to ask yourself, is the satisfaction of doing this yourself going to happen or would it be easier to find a company to do it for free who have their own legal eagles paid an equal amount to ensure that the playing fields are level?

Martin is very cautious towards using third parties and he hopefully will be looking at the company that I have been made aware of so PLEASE DO NOT TAKE THIS POST AS AN ENDORSEMENT FROM MARTIN because he has yet to reach a decision on how he would like to go about dealing with these issues, if he wants to at all. He has not said that I cannot talk to you all about this so equally it is at a point of where I am putting the information up there for you to take or leave.

I, however, hope it is taken as I believe it could help a lot of people with their debts and also bring back some quality of life to those who have been most vulnerable and effected by the unlawful acts of these lenders.

Anyway, I am more than happy to answer any questions that you may have but as you may recall, my point to this post was to provide the information in one place where you can refer to should you need it.

I am totally confused with this post. Does this mean that the mortgage I took out through an financial advisor in 2003 could be unenforceble? How?

petermb_2

It is confusing.
So I will try to clarify.
Unenforceability, is predominantly about Regulated Consumer Credit Agreements. That is secured, home improvement, personal and car loans. (and to a degree, credit cards and bank accounts). Until a recent law change a regulated agreement had to be less than £25,000. The CCA dictated that there must be a number of points raised on the agreement that gave the borrower clear indication of how much the loan was going to cost and what they were paying for. If the agreement failed to jump the hurdles created by this legislation the agreement could be deemed to be unenforceable.

Mortgages are, by nature in excess of the £25,000 limit and therefore "non-regulated" under the Consumer Credit Act. There are less hoops for the lender to leap over and therefore it is unlikely that the loan could be deemed unenforceable,

treliac

petermb wrote: »

Mortgages are, by nature in excess of the £25,000 limit and therefore "non-regulated" under the Consumer Credit Act. There are less hoops for the lender to leap over and therefore it is unlikely that the loan could be deemed unenforceable,

But not voidable, isn't that right?