Hello, Im Alice and I really need some help!

[mumisskint]

Hi,
Im really hoping you can guide me through the quagmire I am in as I dont know where really to begin. It is repossession, bank charges, unfair treatment all rolled into one.

Nearly six years ago I took out a secured loan to purchase my house. I was leaving my husband and already had a residential mortgage on the marital home. As I had my own company the bank lent me the money to purchase my new home. I was then to put some of the equity into the loan once the marital home was sold and they would convert the remainder to a residential mortgage. The contract is drawn up by my relationship manager and reviewed and renewed every six months.

During the six years I have lost the company but as the loan was in my name when the company was liquidated it wasnt liquidated within it. I am then assuming it is not a business loan but a secured loan. The bank then insisted I had to open a business bank account with them and pay the loan repayments into that account from my personal account with lloyds.

About a year ago I had a new bank manager take over. Over night he put the interest rate up by 100% from 2.5% above base to 5.5% above base doubling my monthly payment. He sent all paperwork to the marital home and I didnt know until my X produced the papers in our divorce hearing that the account was some 9k overdrawn, as I was still only paying in the repayments at 2.5% in ignorance of the rise. The overdraft was unauthorised so the interest rate was 28% making my loan interest 34% and rather than bouncing the payments for the loan they continued to take them so they rose to the 9k. I cleared this as he was threatenning me with repossession and had the loan reviewed. He has now put the interest rate up to 6.5% above base and changed it to a capital repayment loan doubling my monthly repayments again which I cant afford at £1500 a month. He has also changed the contract wording to something which says whilst they suspect the loan is for the house it doesnt have to be used for this which worries me a little, they have a charge against the property but as they now have put me down as a sole trader, presumably to justify why they have given me a business account for the loan payments even though I am not a sole trader and employed, they will try to make me bankrupt to recover the loan rather than repossess the house.

I need to know if all this sounds fair or is unfair?
Could I use implied contract terms with regards to the letters I have had that state they will convert to a residential mortgage but they havent done that.
Would the bank account be covered by the CCA as its a business account even though I am not a business? Are the OD charges unfair?
Can he put me into administration to recover rather than seek an order for sale?
He says he keeps putting up the interest rates due to risk, yet I am employed and can afford the £750 a month and have been paying consistently, there is about 50k of equity in the house, interest rates are low etc.
Can I ask people like the BBA / OFT / FSA for help? Do they cover secured lending?

I really dont know where to start but I have two children and I have to try and put this right!

Much Love
Alice

[frisp]

Re: Hello, Im Alice and I really need some help!

Welcome mumisskint (Probably best to take your real name off here). You do not mention whether you have signed any amended contracts?

First If you've not already done this write to their head office requesting their complaints procedure asking them to investigate stating clearly what your complaints are? At the same time include a SAR for all data on all systems that pertain to this matter make sure to request emails and telephone transcripts.

In closing this letter inform them that until your complaint is fully investigated the account is disputed and that you will continue to pay the £750 (or other amounts). Remind them that as the account is in dispute that as holders of a credit license they are bound by OFT 664 guidance in the management of debts.

All of the above is a precursor to taking the complaint to the FOS, you cannot do this until they've investigated and sent you their final response all of which must be within 8 weeks of you making your complaint.

I think they've overstepped their authority and the bounds of their power. However you need to look closely at what the terms were in the original contract hence the SAR to see if all the changes they have made are permissible.

There is also the issue that correspondence went to the wrong address even though I suspect they'll say it would be reasonable for them to expect your ex to pass it on.

So the bottom line is complain put everything on hold (keep paying the 750) until first the Bank and then the FOS investigate that will take at least 9 mths. If you can afford it put some money away as if it all goes 'pear shaped' they'll ask for the difference from what you've been paying plus interest.

You mention they have a charge on your property does that mean there was a court case?

Don't panic there are loads a people on here who will have been in similar positions

[mumisskint]

Re: Hello, Im Alice and I really need some help!

Hello,
Thank you ever so much. Im at the point where I am now loosing sleep with this one.

I sent a SAR yesterday with a postal order. I did it about 3 months ago but it seems HSBC staff dont know what one is and despite 4 visits to the bank with ID for the file they couldnt find it and now its been destroyed ... so starting over!

I think the biggest problem I have is I dont know what to complain about really. I want to be able to say ok you did x and I think that means that you breached y.

Interestingly I have overpaid for the last year inadvertantly. As of yesterday there was 2k in this loan serving account! Im going to try and take it out to put it somewhere else this morning away from them so it doesnt get eaten in charges.
Do you think I can claim the charges back on the account surely a bank cant keep taking just their own DD's on account that is in unauthorised OD?

Thank you once again!

Mumisskint.:clgblinkie171::clgblinkie171::clgblink ie171:
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Oh, and I know I havent signed all the amended contracts, up til now the terms have been pretty similar. Its only now he is bringing in new parameters / wording. I also didnt sign an overdraft application on the account as up til now I've never had one in my life.

[leclerc]

Re: Hello, Im Alice and I really need some help!

Was the previous postal order cashed?(need to make sure since cashing it is acceptance of receipt).
Are you saying that the loan is in credit by £2000?

[frisp]

Re: Hello, Im Alice and I really need some help!

What to complain about.

The original contract was this why and under what condition was it changed to this e.g

The interest rate was this why and under what condition was it doubled.
why and under what condition was the contract moved to a business account
why and under what condition was it moved to a capital loan
Why under what condition was ll of the above done without my explicit agreement, signature or knowledge.
Why and under what condition was the loan considered an overdraft and charged at this interest rate.

If you think on the issues you'll probably think of more! all of which shows you have legitimate questions and therefore are entitled to dispute their figures and actions

I don't think going after the charges will get you anywhere they'll just refer to the FSA/OFT court case as will the FOS. Was there any PPI with the original agreement that may be moody as no one ever got that right before 2004.

First things first, wait thirty days (based on yesterdays date that would be 9 Jan 11) and send a reminder that in 10 days (19 Jan 11) they will be in breach of ICO regulations and that you are making a complaint to the regulator.

The important thing is to get a copy of the original contract with Terms and conditions and post it up here (suitably redacted) for us to look at.

In the mean time don't take calls from anyone, if they call, just tell them to remove your number from their system (they must do this), confirm that they have done it and put it in writing.

Follow this up with a letter (2nd class post) to the caller informing them that you do not want them to call again that you require everything in writing and that you require confirmation that they have removed your number from their systems. Look up 'Curly Ben' threads on here he has a number of naff off letters that will do the trick

Did you ask for their complaints procedure? and was there a court case regarding the Charging order?

Don't panic and certainly don't worry too much, at the moment you've a modicum of control and there are rights which you can call on such as complaining to the OFT or your local trading standards all of which will delay matters.