hello im new but would value your opinion on settlement offer

[chester]

nat west called in our secured business loan and overdraft apparently they are within their rights, we had been late on couple of occasions. We are in process of selling our property and could now meet the loan in full if we had too by taking out additional cost on new mortgage.
They are unable to supply our contract and Im not sure if we should make a offer before it goes into their solicitors hands or if its best to play waiting game. I have also been offered professional advice to negotiate but obviously this will come at some cost.After 30 yrs loyal service Im very disappointed as we had made offer to pay in full after house sale but they wouldnt wait and we have had to move all our accounts to another bank.
I understand how to make offer without prejudice but would like second opinion.
Would they consider offer on secured debt ?
When is best time to approach them ?
Do we negotiate ourselves or hire pro ?
I have list of all payments made, obviously we took out loan I dont dispute this but if they are calling in early can we make offers.They dont know we will possibly have funds in near future.
Thanks for reading

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

Hi and welcome,

Did you tell Natwest you were selling your property, and when did they decide to call in your business loan and overdraft ?
Presumably Ltd company ? Still running ok or going into liquidation ?
When were your late payments and how late were you?
Do you have copies of the original contracts in your business files/accounts etc that you can check on ?
Has your property increased in equity since taking out the loan and using the property as security ?
When abouts was the loan/overdraft taken out ?
Have you had annual statements on the loan ?
Do you know what your balance on the loan should be now and what redemption amount you are looking at?
Approx what kind of value is the loan and overdraft ?

Sorry for question time just to get a better picture.

Regards

Sharon
xxx

[chester]

Re: hello im new but would value your opinion on settlement offer

thanks for reply ill try my best
not ltd co.
they called in 8 weeks ago roughly I have til 12/4/14 to make full payment
the loan is for £70,000 balance now £50,000
overdraft is £15,000 one business and £25,000 on the other ( a old lease came back to us by default as new tenant went bankrupt and we were left with his rent arrears hence hardship)
we told nat west we had inherited property on market and they wouldnt wait for sale to pay off debt, we are sellin our home to raise money and downsizing
the property is business freehouse pub and is valued at £300,000
We cant find original documents
Hope this gives you clearer picture.
We have other assetts but they refused to discuss and told us to close all our accounts after we reported to ombudsman, seemed very much like sour grapes.
We even had to move account re executors where the money would have been paid for sale of property

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

Did they call in the debt before or after you told them you had inherited property and were selling that and your home to pay off debt?

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

Also what was the report to the ombudsman about and what was the outcome ?

[chester]

Re: hello im new but would value your opinion on settlement offer

I should add we have diversified business, now selling cars off forecourt to bring in extra revenue , have also leased flat all of which have improved our income and would have easily maintained the business expenditure. We have only suffered hardship due to the bankruptee causing additional costs and obviously the recession didnt help. Our income is now back to previous levels .

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

Have they written to you with the 12/4/14 deadline ? If so, could you type out of post up a copy of the letter please. (redact personal details).

So you think whole debt is about £90k. Have they actually given a settlement figure?

(couple other q's in last couple posts too)

[chester]

Re: hello im new but would value your opinion on settlement offer

ombudsman and new bank very surprised they called in loan as we have assetts and equity , ombudsman said they were within rights as they had had late payment although we had brought it up to date.Apparently the old business manager has left and new directive was to pull in lots of accounts. Staff have told us that lots of loyal customers have had same notice bit of knee jerk reaction to pub business.

[chester]

Re: hello im new but would value your opinion on settlement offer

The whole debt is just under £90k, they were aware we were selling two properties valued combined at over £500,000 obviously mortgaged but plenty of equity before we had loan called in.They agreed to wait one week then changed their mind and called in loan after we complained re o/d there was no previous notice of loan until we had notice.
The deadline was 8/3/14 but after asking for copies of contract again and payments made they have moved dates 12/4/14 . I have written conformation that contract is lost.I cant scan documents tonight my husband has put them away.They are asking for full monies owed although latest letter has no mention of the £25,000 from current business.

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

There's a few similar cases. One that is also a pub/restaurant business that wanted to settle and the bank 'couldn't find the paperwork'. She also had recently increased equity on assets.

Disgusting IMO and needs reporting to the FCA.

That doesn't help a lot with your settlement offer I know. I think an offer through a solicitor would be a good idea and I'll try talk to someone tmw on this subject - but let us have a look at the wording of the letters first.

Just because they are business loans doesn't mean they can get away with having no original paperwork available.

[chester]

Re: hello im new but would value your opinion on settlement offer

ive just found letters in brief ... the notice reads
they have terminated all banking facilities..
we have 7 days from 13th march to pay total owed
options available ..tel to make mutual repayment plan..write with proposals.... this is why i need advice do i make offer .. how much .. or hire pro .. stress

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

Are they intent on suing through court on the 12/4 ? Just having a think really.... If so and they have indicated that to you in the letters then a request for pre-action disclosure and inspection of documents may be a good idea. Although it is a little bit like playing chess and I'd hate to play chess with my home on the line. If they are to take you to court to call in the loans, they must have the paperwork on which to rely in court for bringing the claim, and they will have to disclose that to the court.

As its not a regulated loan under the consumer credit act it is a simple contract case, but they still have to follow rules of lending by the FCA too. As you're not a Ltd company but a sole trader? you could be treated as a consumer for the purposes of the loan. Might hold them up a while to sell your property.

[chester]

Re: hello im new but would value your opinion on settlement offer

I have been reading the other post which is why i am so interested in your thoughts. I have negotiator on standby but value another opinion as hes not regulated solicitor anymore. Another company want 25% plus vat of savings I feel this is extreme.. How do i turn on notifications as im missing some of your posts . Thanks for help

[Amethyst]

Re: hello im new but would value your opinion on settlement offer

7 days !!! ffs. nasty.

So you have the option of a 'repayment plan'. It might be an idea to offer repayments on the whole package of a sensible affordable figure pending sale of your properties and then make full settlement.

Let me come back to you, be Monday realistically.

[chester]

Re: hello im new but would value your opinion on settlement offer

The secured debt is against the business not my home .
The letter mentions consumer credit act 1974
not sure what this means !!!
Im hoping are sale will go through in 3/4 weeks but will they consider offers ?