Loan taken out under CCA 1974 where lender is now saying it is unregulated

[pt2537]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Hi pt2537,

So can I ask your opinion on this....

If a loan taken out in July 2006 was executed on regulated paperwork but was for £30,000 (so at the time exceeded the £25k limit) should it still be given the same protection as a loan under £25,000?

Any help would be really appreciated...I can't get a straight answer on this anywhere.

Thanks!

In my opinion, no it would not.

If the paperwork was to provide protections such as say a right to cancel then it would give you a contractual right to cancel even though it is not a regulated agreement. What it wouldnt give you is the unenforceability protections say if the creditor failed to give you the cancellation notice under the Consumer Credit Act as the agreement is not regulated due to falling outside the Act./

[Guest]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

As said above it would not be regulated sadly, the only way that this could become regulated agreement would be if it were modified on or ater 06/04 08, as per section 82 of the act, then the new modified agreement would then be regulated and have to conform with the requirements of the act.

[jhill]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

As said above it would not be regulated sadly, the only way that this could become regulated agreement would be if it were modified on or ater 06/04 08, as per section 82 of the act, then the new modified agreement would then be regulated and have to conform with the requirements of the act.

Thanks! So, we took a payment holiday in June 2008 which had the effect of changing our monthly payments for the remainder of the agreement (25 years). Would this make it a modified agreement?

[pt2537]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Thanks! So, we took a payment holiday in June 2008 which had the effect of changing our monthly payments for the remainder of the agreement (25 years). Would this make it a modified agreement?

No, it is very unlikely to have been sufficient to modify the agreement to trigger s82.

Have you checked the original terms to see if they allowed a repayment holiday? chances are that the holiday was a term of the contract

[Guest]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Thanks! So, we took a payment holiday in June 2008 which had the effect of changing our monthly payments for the remainder of the agreement (25 years). Would this make it a modified agreement?

Was a new agreement issued ?

[jhill]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

No, there was no new agreement.

[jhill]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Just to fill in the blanks...This was a Northern Rock Together Mortgage Product and was sold to us on the basis that the unsecured loan was covered by the CCA. Now they are saying that it is not covered and we are not being afforded the same protection as other borrowers whom took out loans below the value of £25k. I'm p***ed because I made sure at the time the loan was no-different to any other loans I had previously by checking that it was covered by the CCA and NR obviously confirmed that it was covered as per my agreement which states that it is. Had I known that by borrowing more than £25k would have changed the rules I would have stuck at that...we used the £5k to pay off a credit card.

[Guest]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Just to fill in the blanks...This was a Northern Rock Together Mortgage Product and was sold to us on the basis that the unsecured loan was covered by the CCA. Now they are saying that it is not covered and we are not being afforded the same protection as other borrowers whom took out loans below the value of £25k. I'm p***ed because I made sure at the time the loan was no-different to any other loans I had previously by checking that it was covered by the CCA and NR obviously confirmed that it was covered as per my agreement which states that it is. Had I known that by borrowing more than £25k would have changed the rules I would have stuck at that...we used the £5k to pay off a credit card.

So was this loan partially (£25k)to pay off an earlier loan with the same company, with £5k for any use ?

[jhill]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

The loan for £30k included the money for our deposit (which immediately went toward the house purchase) so we actually only received about £15k (or there abouts) for our own use.

[Guest]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

The loan for £30k included the money for our deposit (which immediately went toward the house purchase) so we actually only received about £15k (or there abouts) for our own use.

Were the amounts itemized separately on the agreement, and what was the purpose of the loan,( was it to raise money which you then decided to pay your previous loan with or was it to pay your previous loan with an additional unrestricted use element,) I am thinking of section 18 CCA.

[pt2537]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

http://www.wragge.com/analysis_3923.asp

The s18 point is a very difficult one with the NR together mortgage.

I recall looking at such a challenge, but if i recall correctly, the credit was dispersed at the debtors discretion so as to fall outside of s18 with that product

[Guest]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

http://www.wragge.com/analysis_3923.asp

The s18 point is a very difficult one with the NR together mortgage.

I recall looking at such a challenge, but if i recall correctly, the credit was dispersed at the debtors discretion so as to fall outside of s18 with that product

Yes it would have to be distinguished from Heath, which is why I inquired about the form of the agreement. It may be worth taking a look at though ?

[pt2537]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Yes it would have to be distinguished from Heath, which is why I inquired about the form of the agreement. It may be worth taking a look at though ?

indeed always worth a look, but heath is a pain in the butt

[Guest]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

indeed always worth a look, but heath is a pain in the butt

Yes don't I know it, lots of cases abandoned after the appeal failed.

[pt2537]

Re: Loan taken out under CCA 1974 where lender is now saying it is unregulated

Yes don't I know it, lots of cases abandoned after the appeal failed.

most of the problems with this area of law were brought about by dumbazz CMCs who ran dopey arguments that had no merit, that caused more harm than good for consumers.