I think my lenders may have committed fraud/unfair Secured loan?

[Jellard86]

Hello everyone.

I'm not sure who to ask or what my options are, I'm hoping someone on this forum may be able to help or pop me in the right direction.

My situation is long winded, grab yourself a Tea/coffee before you start reading

My brother and myself have taken a secured loan in May 2013 charged against our property, the loan was for £22,500 @19% over 240 months @ £418 ( i know however at the time we was desperate for housing renovation) I will refer to this lender as FE.

We continued to make payment to FE. Until September 2013.

Around October 2013 we received a letter to advising we now need to make payment to another company called LL

We continued to make payments to LL, however a few times we made payments to the old account and LL advised to try get this back however I was unable to at our end, thereafter I never heard anything.

Around mid 2014 we fell into 3 months arrears and the lender LL requested for possession order, which we managed to suspend and agreed to making arrears payments of £82.00 as well as normal payment of £418.00. so the new agreed amount was £500 which we have been paying.

We have recently requested an up-to-date statements on our account with LL (never have they sent a statement to us in the past), to our shock after paying £500 per a month for almost 10 years, our balance has gone from £22500 to £52000. almost doubled Basically when we went into arrears they added this to the balance which would dramatically increase the interest amount which would mean we would never be paying the debt off.

This has raised some concerns of how this business is operating

We started to investigate the company FE before our loans was transferred to LL and to relook at out contract with FE which we have found
We checked on companies’ house for FE, which shows 2 people joined the company FE which was Richard & Jane alongside the current director and shareholder Trevor. so now the owners of the company were Richard, & Jane and of course the original director Trevor

Jane and Richard Joined the company FE on 13th September 2013 and then within the same week 18th of September 2013 both terminated from the company. so resigned from the company FE with in ! week

On company House for FE it shows that Trevor (the remaining director filed) for liquidation of FE, the high court approved a liquidator to be appointed on the 10th December 2013.
Upon the hearing, Jane and Richard are stated as witness to the requested.

When jane and Richard resigned the set up another business LL and transferred equity from FE before requesting for the liquidation of FE,

My understanding is that Jane and Richard only entered the company so they could move equity and money from FE to LL, so the liquidator could not in could this, had they not done this, our loan would of more than likely moved to HSBC as this was FE's creditor who applied charges against FE which are still showing to date on company house as outstanding.


We have also discovered that Trevor has now joined LL company along with Jane and Richard.

To top this up the Solicitors that FE and LL both used is owned by Jane, so very easy to move things like loans around and very quick to apply charges.

Jane also was paid by the liquidator for the sum of £65k as the liquidator wasn't to know perhaps Jane was also involved.

Any help will be appreciated thank you, however we believe all 3 may have committed

Thank you all for reading

[R0b]

Hello

I'm not sure what you are asking us. Whether Richard, Jane or Trevor have committed any fraud is a separate issue unless you are suggesting it has impacted you directly, in which case you need to identify what relevant part of the law makes the assignment to the new company unlawful/illegal.

Seems to me your real issue is that the debt has more than doubled, in which case I guess your starting point would be to make a subject access request asking for all paperwork, account history and everything else that they hold about you. Then you will be in a position to identify your next steps.

When you got the possession order suspended, how did that happen? Did they offer you a settlement agreement in return for not seeking possession? It may be that they have unfairly added a high percentage of interest as part of the settlement or possibly compounded the existing interest which can mean the debt increases substantially and in a very short period. That may be considered unfair particularly if there is no justification.

Get your facts and documents together then as I said, you should be in a position to consider options available to you.

[Jellard86]

Hello

I'm not sure what you are asking us. Whether Richard, Jane or Trevor have committed any fraud is a separate issue unless you are suggesting it has impacted you directly, in which case you need to identify what relevant part of the law makes the assignment to the new company unlawful/illegal.

Seems to me your real issue is that the debt has more than doubled, in which case I guess your starting point would be to make a subject access request asking for all paperwork, account history and everything else that they hold about you. Then you will be in a position to identify your next steps.

When you got the possession order suspended, how did that happen? Did they offer you a settlement agreement in return for not seeking possession? It may be that they have unfairly added a high percentage of interest as part of the settlement or possibly compounded the existing interest which can mean the debt increases substantially and in a very short period. That may be considered unfair particularly if there is no justification.

Get your facts and documents together then as I said, you should be in a position to consider options available to you.

Hello Rob,

We made an agreement that we would pay an additional amount of £80 to clear the arrears and the court agreed this.

I have since spoken to the director, told him the impact this has caused and i believed his charges were unfair, he has agreed to relook at the loan and let me know what he can do with the figures and interest rate and will call me back and let me know. Fingers crossed he gives me a some good news.

If not then i will go with your suggest of getting a SAR

Just in regards to the SAR do i send this to both companies as the the first company has liquidated so would i need to request this from the liquidator?

Thanks