Uneneforceable & Voidable loans

petermb_2

treliac wrote: »

But not voidable, isn't that right?

Loans can be both voidable and unenforceable

Mortgages will only be voidable.

Sick_2

Hi,

I took out a loan in 2004 of around £5000. The loan was through a private financing company of which I knew the owner. The loan was to be paid over 10 years (I know, stupid) but in the last 2 years the company has gone out of business. I received a phone call asking me to stop paying into the company account and was given the owners bank details...this then changed a few months later to a new bank account belonging to the owner....this than changed to the owners wifes bank account...sounding dodgy yet?

I asked for a copy of my agreement to be sent out, this was never done, in fact I have never received one item of post from this company.

A couple of months ago I decided to call it quits. Out of suspicion, I just stopped paying the loan. I have ignored phone calls and still have not received a letter from them. The calls are starting to turn to voicemail messages with threats of wage attachments, visits at work and visits at home.

The question is...am I legally obliged to pay this now given the companies behaviour?

petermb_2

Well first of all, no agreement, no loan
Next time you get a phone call, request that you are given an address that you can write to regarding the loan.
Then request a copy of the agreement. If you pm me I will provide you with a template letter, but basically you request a copy of the agreement under section 77 of the Consumer Credit Act 1974. You must include a cheque or postal order for £1. Advise in your request that under the above legislation if the lender fails to provide a copy of the agreement within 12 days the contract will become unenofrceable until it is provided.

Sick_2

Thanks for this,

Does the bank account I am being asked to pay into have a bearing on this?

I don't feel comfortable paying into a private bank account when I borrowed from a company. Is this tax evasion on their part of sme sort?

petermb_2

It does not sound right in any way. I would also request a copy of the recipient's Consumer Credit Licence. I bet he does not have one. Did you ever have a copy of the agreement?

Sick_2

I did have a copy but unfortunately I cannot find it. I have asked over the telephone on a number of occasions however I have never been sent it.

I have just been given his address via text but no business name, I have now requested this.

I_know_my_ABC_and_my_CMYK

Sick wrote: »

I did have a copy but unfortunately I cannot find it. I have asked over the telephone on a number of occasions however I have never been sent it.

I have just been given his address via text but no business name, I have now requested this.

Good luck with this, this guy sounds really dodgy. Don't take any cr*p from him.

vix2000

Can someone explain the situation regarding mortgages sold by brokers, please?

petermb_2

vix2000 wrote: »

Can someone explain the situation regarding mortgages sold by brokers, please?

Again, a complex issue.
There are at least a dozen senarious where the broker/lender/client relationship hits the buffers.

It really all depends on when you took out the mortgage, how the broker initiated contact with the lender (directly or through another third party) and what paperwork the lender and the broker provided at the time of setting up the loan.

to give you an idea. If you took out a mortgage through a broker prior to 1998 there is a strong possibility that you have a potential claim on your hands.

From 1998 and 2004 there is less chance of a claim but it depends on who you borrowed the money from ( ie sub-prime lender). A voluntary code existed at the time which many broke.

Dont let any claims agencies fool you into thinking you may have a claim on a residential mortgage after FSA morgage day which was Oct 2004 as the legislation made it impossible for a claim. ( you know the companies I refer to, the ones that tend to charge £495 up front and have been discussed at length in these forums)

where issues are found to be prevalent the results will range from compensation being due to the entire loan being made voidable. Each case is different

micko19

Would any of the following alone or combined help to make a loan voidable...

1. A full secret commission.
2. The half way house situation in Wilson v Hurstanger ie informed consent not given for commission and amount not declared(amounts much larger X 6).
3. Missold ppi.
4. Incorrectly documented ppi ie should be cca categoery debtor/creditor supplier.
5. Incorrectly documented loan as in over 25,000 but involving restricted use and unrestricted ie should have been multiple agreement for all the cca categories...uuc and ruc all cca regulated but non regulated by the lender.
6. Repeated breaches of the DPA where agreements never show up in SAR'S AND HAVING TO USE COURT ORDER TO GET AGREEMENTS.

I know some of these issues can result in unenforceability, but when a loan has been settled/REFINANCED it cannot be made unenforceable because it no longer exists.

However i do believe a loan can be deemed voidable after settlement/REFINANCED. Meaning all monies get returned apart from the bare bones of the loan itself..So all interest erc all charges would be returned to you.....

THe above list of transgressions are done in most subprime loans and may be worth discussion

cheers

micko19 bump