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Advice regarding loans & there inclusion to CCA or not?


ihaterbs
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Advice regarding loans & there inclusion to CCA or not?

In short I have several business loans with the RBS, none of which have any mention of the consumer credit act in them @ all, it’s my belief they should have…

In part of my wholly incomplete data subject access response from the rbs all loans are referred to as Business term loan.

There is no mention of the word mortgage and they are referred to as customer loans on all agreements and are for the purpose of purchasing property each is listed

1st is for £15000 2nd is for £28000 3rd £30300 from years 2001, 2002, 2004 respectively

According to the bank all loans over 25k are exempt and also loans for house purchases are also not included, so it seems they are saying I took the loans to purchase houses! whilst this is what I did surely the loans should be covered by some kind of legislation or law … I purchased 2 property’s actually a industrial unit and a shop/flat so there business premises and not houses, in all cases they took out legal charges and according to land registry and my solicitor there listed as 1st legal charge and mortgages What kind of loan are they?

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The Consumer Credit Act covers what it's name says - CONSUMER CREDIT. Consumers are classed as general people who are not trading as a business (that would be called a VENDOR). So if you are a registered business (i.e. Limited, PLC, LLP etc) then any finance you take out is not regulated by the CCA. If you are a sole trader or partnership (i.e. a trading as) then your loans/finances will be covered under the CCA, providing the amount is no more than £25k, as this is the amount the CCA covers.

 

Mortgages are secured finances on property, despite what that property is. Maybe the way the bank have recorded it is incorrect, or maybe they did not have this facility? I am not sure. Either way, the CCA does not cover mortages or secured loans on property - these are regulated by the Financial Services Authority under the Finance Services and Markets Act .

 

Ring your bank, and ask why this is and see if they can explain it.

Lived through bankruptcy to tell the tale! Worked in various industries and studied law at university. All advice is given in good faith only :)

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