natwest has lost my loan documents

[meerkat manor]

Hi All

This is my first post and I would like some help please.

My father and I took out a loan through our limited company back in 1997 for 93,000 to purchase a larger premisses of which natwest wanted a legal charge on the premises for the security of the bank. We originally understood the loan to be for 10 years but natwest have now informed us it is for 15 years fixed at 10.25%. This is what we dispute with them and have wrote to them demanding a copy of the documents we signed. The have now put it in writing to us that the cannot find the loan documents but insist we still have to pay another 2 years as they have a charge on our premisses and will take charge if they have to.

Do I have to keep paying the payment.

Can they take charge of the building if I stop paying.

Can they take the monies out of our personal accounts.

To date for the 93,000 loan we have paid back 160,000 and they are asking for another 2 years with no document shown to us.

please advise.

[rebel11]

Hi meerkat

 

Welcome to CAG

 

I've moved the thread to the Nat West forum.

 

Other experts with more experience will respond. Would your account hold such documents?

[meerkat manor]

Hi Rebel11

I would of thought natwest should have on file the original terms & conditions but they have not provided us with any documents to prove we still owe the outstanding monies. Without this I cant see how natwest can pursue what they say is outstanding.

[meerkat manor]

Can anyone help me on the above , what rights do I have if I cancel my payments until they produce the docs.

[rebel11]

I've moved the thread to the business forum.

 

Sorry, when I wrote 'account' I meant to write 'accountant', you will get advice. Some of the guys with the relevant knowledge probably aren't around at the moment.

Most banks hold documents for a lot longer then 6 years, but they won't admit to doing so.

[meerkat manor]

Any Advise would be great ,

Do I have to continue to pay the loan

Can the bank take charge of the building.

[elsinore]

Hi MM.

Please excuse the blunt questions – no offence meant.

1. If you thought that the loan was for only 10 years, why did you continue to make repayments for a further 3 years? Do you not have any copies of the original loan documents?

2. Are you sure that Natwest registered a charge over the property? Do you have any documents to prove that it was done? If not, you should apply to the Land Registry to search your property record and establish whether or not a charge was actually registered.

3. To invoke any legal charge, Natwest would have to prove to a court that there was an outstanding debt to be collected and, without a loan agreement, that would be difficult!

3. Banks are notorious for ransacking other accounts in order to pay off debt. They should not transfer money from a personal account in your (or your father’s) name to an account in the limited company’s name. However, they probably wouldn’t let a little technicality like that stop them.

4. I wouldn’t trust a bank as far as I could kick an anvil. If I found myself in a weak position with respect to a loan debt, I would move the bulk of my money elsewhere. For you to do this right now, though, would of course annoy them intensely and might worsen your situation, so you first need to know where you stand.

Els

[andydd]

This goes to the very heart of the CCA principles, (i.e if you request signed copies of loan agreements and they cant provide them you are entitled to withold payments.)

 

I'm not qualified to say how this effects the charge on your property though, you should first go to the land registry site and download the title register info, it will cost £4, this will list any charge(s).

 

The whole point of having a Ltd company is that it is Limited, (i.e you are not (under most circumstances) personally liable.

 

Do you own a copy of the original agreement ?

 

Andy

[rebel11]

Hi meerkat

 

Also it might be an idea to check what the monthly payment actually consists of.

[meerkat manor]

Many thanks for your view on the matter. The reason we have paid for an extra 3 years is I moved to spain 6 years ago and now only rent the building out. This is a big oversite on our behalf , I contacted the bank and asked for all the paperwork connected with the loan. All they have provided me with a letter saying we cant find the documents and you must pay. I have written to them saying loan in dispute but have not yet stopped the payments. I will check with the land registry to see if they registered a charge. Any other advise would be appreciated.

[sir_gilmour]

Hi

Welcome to The Consumer Action Group.

 

 

I am just letting you know that as you haven't had any replies to your post yet, it might be better if you post your message again in an appropriate sub-forum. You will get lots of help there.

 

Also take some time to read around the forum and get used to the layout. It is a big forum and takes a lot of getting used to.

 

 

Once you start to find your way, you will soon realise that it is fairly easy to get round and to get the help you need.

 

It can be bit confusing at first.