When is a loan a business loan?

[Lucyis]

Hi all,

 

Can you please give me some guidance on when a loan is not a business loan or even if this is relevant?

 

I asked for a residential mortgage. I was given a loan. No where on the initial agreement does it mention business loan, corportate loan etc. It is in my name not my previous company's name. I was never a sole trader I had a company limited by share. My company had a relationship manager at the bank. He was someone who knew me well. I approached him for a residential mortgage as we had a 'relationship' and he was my first port of call.

 

In 2008 on letters there was an additional phrase added to the letters sent. Suddenly my 'loan' had become a 'flexible business loan'. I was forced to open a 'business account' which looking at the documentation is a clubs and charities account, yet my company had folded in 2006 and I was caring for my son with no business interests at all.

 

So I have a loan used to buy my house as an all monies charge against my house. I thought terms in contract were important?

 

Does it matter I asked for a residential mortgage, they never explained what I had or the small print of what they had given me or not?

 

A normal mortgage would have given me consumer rights with the changes to the Consumer Credit Act in 2008. So I find the fact they changed the wording was a response to making sure I had no rights and they could carry on raising the interest and adding fees whenever they choose.

 

What do you think?

[Conniff]

Do you still have your original agreement ?

 

A business loan would be more costly.

[Lucyis]

Yes, I have the original agreement. No where does it mention it being a business loan. It is more costly in that they raise the rates above base by 2 -5 % every time they renew it, compound arrears into the loan and charge me a fee for each renewal.

 

Shouldnt it be in the contract its a business agreement?

 

I guess Im trying to find out if I have any rights or not? Does BCOBS work for business loans too? The FCA? The FSAct on mortgages?

[Conniff]

Yes it should. If you have had any increases in your interest as a business and not as a consumer, then challenge them and request they refund them.

 

You should work out any difference, if there is any, which will make your job easier.

 

What about ppi ?

[Lucyis]

They say its a business loan, it doesnt say it is on the contract. They then changed it to show it was when the CCA put loans other than business loans into that jurisdiction. Is it mis selling?

[Lucyis]

I think where I am going is I want to write them a huge letter that says this is what you did, its wrong under this bit of legislation and you owe me xxx in fees / charges you shouldnt have charged. Anyway, as thats quite a lot and these things will result in me going for damages for all the stress youve caused, the breach of confidentiality twice and you will be fined so lets just write the debt off, remove the charge and we'll forget it ever happened ..... ?

[Conniff]

Don't you suggest the amount of damages until they have responded, they might just make that offer themselves. If they don't, then you will have mentioned damages and can ask for an amount that would make it more prudent for them to take that action.

[Lucyis]

Does it though look like misselling? I think it is, it isnt what I asked for, they didnt tell me what it was, explain the small pint or how it was right for me. as they renewed it they didnt consider affordability, even after I didnt give them a bean for two years as I was so broke.

[ericsbrother]

I think that they have tied the two together so they can nab all of your assets if it goes pear shaped. Immoral at best and almost certainly misselling ad I bet the interest is higher than bog standard mortgage rates