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Lender - repayment problem

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Help!

 

I have a loan/charge problem.

 

I was very silly a while ago.

I borrowed some money and allowed the lender to take a charge on a property.

I thought I would have the means to repay quickly.

But other things happened and I couldn't repay as quick as expected.

There was an agreed % on the loan - and the longer it took to repay the more I'd pay.

 

I have since offered to repay - in full - the original loan plus a profit return, but at a lower % than on the agreement - as that is all I have.

 

But the lender has refused to accept my offer.

They want a higher % profit return

- or they will act on their charge and repossess the property.

 

The property is valued much higher..

They also keep adding more high % interest on the original loan.

Worse, the lender called/has alternatively suggested that I let them sell the property;

that they know someone who will buy it!

 

 

Clearly this is less about repaying the loan and more about extreme profiteering and wanting the property.

No morals.

 

I have been trying to consider next best steps.

 

I know I need to put the verbals in writing.

Reiterating in writing what the lender suggested would not look good in court...

 

Next I am just wondering what would happen if I insisted on repaying the original loan;

just making that bank transfer, with a lawyers letter confirming the repayment?

 

Obviously it reduces the interest payable

but I am thinking that more importantly it makes the dispute about a smaller sum of money

- the amount of their profit.

Would this help me?

 

Can I force a lender to accept repayment of only the original loan sum?

And then we just argue about their profit.

Or does the legal charge make any challenge difficult?

 

Might a judge say I owe the full % the lender wants, less their deliberate delaying tactic period,

but - in my favour - allow the sum to be payable over a longer period of time and not subject to a repossession order....

 

Just wondering all this aloud...

 

Am I wrong?

I feel I should continue with the plan to repay the original loan,

because I can, and then let the dispute on their profit go to court?

 

Does anyone have any idea on how a judge may look upon this situation?

ie a lender refusing full repayment and a profit;

instead to deliberately waste time to gain more profit and an asset.

Stressful.

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firstly stop talking around corners.

 

name the lender

tell us what type of loan it was

and for what value and interest rate.

 

the more exact info you give

the better advise we can give.

 

dx


..

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Thanks dx

Like the straight talk!

it's not a bank, its small financial outfit, kind if loan shark. It was a regulated loan though.

Offhand I can't remember their exact terms - but I have offered full return of their original loan after 1y + 6% profit. They want apx 20% profit.

I'm not so comfy giving exact details on lender/loan right now. I hope that the info I do give will be enough for some assistance...

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They have to go to court to force a repossess... If they do then they have to explain why a repossession is the only option. Youve already offered to pay them in full which would kill this dead IMHO.

Whats the charge amount and restriction type?

 

Is it regulated by the CCA 1974? If so there are rules in the CONC Sourcebook that enforce that a lender is NOT allowed to suggest borrowing or selling assets in order to repay debts (Whether in arrears or not)

:)


 

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I will check the paperwork.

I don't think its cca, rather the financial board that covers regular loans/ mortgages.

 

Lawyers letters have already begun

- but they stepped outside lawyers after my repayment was offered to make these 'suggestions' of selling asset cheap and wanting more profit.

 

I bet you are correct that a court won't allow repossession if they see repayment offered just not the amount of interest profit they want.

 

For arguments sake

- these aren't the real figures

- but the situation is something like this:

apx asset worth 750k,

loan 350k,

offer to repay 380k /

they refuse 380k and want 420k and intend to keep adding interest to the original amount

 

the figure they want now will increase so far out of my ability to repay and they force repossession.

 

Obviously this is wrong,

unethical, immoral etc and I was very silly to use such an outfit.

Their refusal to accept the repayment makes it clear they are money

-grabbing profiteers

- so do I just 'call their bluff' and transfer the money via a lawyer

- would this alter the dynamics of their demands and any future court case?

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missed who is the lender?


:mad2::-x:jaw::sad:

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I haven't disclosed yet! It's not a regular bank listed on here. It's a small private financial house (read as loan shark!)

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Thread moved to the appropriate forum...please continue to post here to your thread.

 

 

Regards

 

Andy


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it was a bridge loan

 

Is the FCA open to phone calls to discuss the situation?

 

I have been thinking about the "game" the bank is playing - and I think perhaps their conduct should be reported. Is that via a call initially or has to be a letter?

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It's a new week and I need to address the situation above.

 

As the Lender rang me to tell me I only had limited options

- all of which centre on me giving them the property and not repaying the loan

- should I write a letter to the lender noting everything they said

- so there's a paper trail of their conduct?

 

I drafted one immediately after their call, as I didn't want to forget what was said.

Or should I just get the lawyer to write to say their refusal to accept my repayment is unacceptable and they wish the redemption papers to be sent forthwith????

 

I did receive a "pre-action protocol for possession claim .... in respect of residential property"

Just re-read it. There is a clause that if borrower makes a proposal for payment, and they dont agree to such a proposal they have to put it in writing within 10 biz days. They haven't - yet.

 

Another clause - says lender must consider not starting possession where the borrower can demonstrate he/she has an ability to pay an instalment (in this instance the whole loan + profit)

 

Plus there is a compliance clause - where both parties must be able to explain the actions they have taken to comply with the protocol.

 

Is any of this relevant to the fact that they are not accepting payment of the loan?

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I did receive a "pre-action protocol for possession claim .... in respect of residential property"

Just re-read it. There is a clause that if borrower makes a proposal for payment, and they dont agree to such a proposal they have to put it in writing within 10 biz days. They haven't - yet.

Another clause - says lender must consider not starting possession where the borrower can demonstrate he/she has an ability to pay an instalment (in this instance the whole loan + profit)

Plus there is a compliance clause - where both parties must be able to explain the actions they have taken to comply with the protocol.

 

Is any of this relevant to the fact that they are not accepting payment of the loan?

 

Yes


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Thanks Andy

I spoke to FCA - they advised that the lender is regulated but it seems the loan may not be because it was 12 months or less and it falls outside of their remit.

 

Although the FCA did say that if I wish to make a written complaint they will make my issues widely known within the FCA.

However, that would not personally help me now.

They did say I should just handle it from a legal perspective and could contact the Financial Ombudsman.

Although again, I am not sure that will help me now.

 

It seems I must get them to put in writing why they are refusing my repayment offer.

Or should I get a lawyer to outline my complaints first?

A lawyer would probably tell more succinctly why they cant have the property!

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The lender has refused the offer.

They want more money.

And are going to serve Notice for repossession.

 

How do I argue this now?

 

Can I just send the money to their bank account

- as this obviously removes the original loan and gives them a profit too

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just a follow up on this

- lender says they have applied to court for repossession.

They wont accept my offer of repayment because the interest on the loan has increased

- and they want all the interest, not my reduced offer.

 

It wasnt a mortgage, it was a loan with interest rolled up - so not been making payments.

I had intended to clear the loan ages ago

- but couldn't until now, but only at the amount I have offered them.

 

They absolutely refuse to accept a repayment unless the full amount of interest and now costs etc are also paid.

Each day that passes they are continuing to add interest on the bulk.

 

They want to keep applying interest on a large sum of money

- even though my repayment would reduce the balance. There would only be unpaid interest left.

 

Our dispute would then be just on the unpaid interest, which

- if that was still to accrue interest charges

- would be based on the lower amount.

 

But they wont release the charge on the property until the whole ever increasing lot is paid.

And without any further negotiation / discussion on alternatives they have applied to court.

 

Do I just accept that this is now going to be a court case?

Or have they not followed the pre-action protocol in terms of alternative payment discussions and I can still do something pre

- going to court?

 

My situation/ health is delicate at the moment and I currently have no income.

I would not be able to afford a lawyer to go to court.

I really do not know what to do....

 

fwiw - the lender keeps repeating that the property is worth much more and thats why they want to hold out for more money from me

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fwiw - the lender keeps repeating that the property is worth much more and thats why they want to hold out for more money from me

 

You have this in writing yes??

 

It is clear that they never wanted you to repay the loan at all, they simply wanted your property, something which any DJ worth their salt would recognise immediately!


Who ever heard of someone getting a job at the Jobcentre? The unemployed are sent there as penance for their sins, not to help them find work!

 

 

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Bazooka - I recorded a call in which the lender states 'I should just move out and let them take over the property'

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The lender has served notice.

I have 3w until a hearing.

In the meantime I am trying to resolve with 1) a sale (may get an offer this week) 2) switching lenders 3) asking if I can part pay and have an extension on the outstanding

 

I know nothing about repo - so will read some other threads on this.

But, before I do that and inform myself better of the process - is there a way of postponing the hearing? Its just after Easter and I only just got the paperwork on Friday - giving me only 2..5w to resolve/ respond.

I havent even read the papers yet, have no idea how I respond. Plus - do I assume I may need a lawyer? What happens if i cant afford one? But the lender obviously can and will...

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Since I started the thread, the source of the funds to help repay the loan, is potentially no longer there :-( Scrabbling for alternatives, as just said above

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Have you got any legal advice yet?


Who ever heard of someone getting a job at the Jobcentre? The unemployed are sent there as penance for their sins, not to help them find work!

 

 

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No.

I was relying on the financial assistance to solve the issue before it went to court.

Only got papers on Friday; haven't read yet.

 

Am spending today/ tomorrow trying to resolve alternative financing options.

 

May have a sale option later this week which would totally solve the issue.

 

However, with Easter in 2.5w and court hearing just after I really need to step up and address the legal stuff too.

 

Its a lot of money and am worried about funding lawyer too.

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I really think you need to be seeking some form of legal assistance with this, as they will be able to view all the docs you have and other correspondence regarding your situation.


Who ever heard of someone getting a job at the Jobcentre? The unemployed are sent there as penance for their sins, not to help them find work!

 

 

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I have had some legal advice.

There were some issues with the claim and we filed a defence pointing out mistakes.

 

In meantime I managed to raise the full amount that they wanted.

But now the lender wants more money because time has passed - added costs and interest.

 

Court scheduled in April - but even waiting til then will just add more interest.

And if court agrees an adjournment this further delay is only going to waste more days and add more interest.

Am trying to settle now. That is best solution.

 

They say they will be amicable.... But each time I have tried to settle, they keep saying no, the amount is not enough.

I raised the extra, and then they say its still not enough...

 

At first the lender wanted 10% more than 1st offer.

I managed to raise the extra 10%.

 

Now they say I still need to raise another 6%.

I'd raised 100% of what was owed; they say its now only 94%.

 

They also won't let go of 1st charge, which my new source of funds requires, unless their balance is settled in full.

 

If they won't settle on what I have raised and I have to go to court, is a judge likely to deny possession because I did raise the full amount they required 2-3 months ago??

 

Or is the the judge likely to give possession because I haven't raised the recent extra interest/ costs accrued?

Edited by dx100uk
spacing

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Managed to resolve this.

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