Secured loan

[scottie2015]

In December 2006, I took out a secured loan for over £25,000 from Firstplus which included PPI.
4 years later I won my case that PPI was incorrectly sold to me and the amount was taken off my current balance of the loan .

I am now not in a position to keep up payments on the loan but have issues with the loan agreement itself.

I have been told that it is not regulated by the consumer credit act as it is over £25,000 but what I would like to know is- what legislation actually covers it, as I am sure it must comply to some sort of code of conduct.

Any information or opinions would be gratefully received.

[Debt Camel]

Re: Secured loan

Could you be more specific about what angle you are interested in?

Are you concerned with the details of the contract that you signed? If you are, could you explain the nature of these concerns. - do you think you were mis-sold the policy or was it mis-represented to you?

Or worried about how FirstPlus is likely to react when you are unable to make repayments?

If you can say more about your current situation (is it temporary? how much of the FP loan remains? how much equity is there? do you have unsecured debts? what about the first charge mortgage?) it would also help.

[scottie2015]

Re: Secured loan

Sorry debt camel but I was looking at the legality of the loan and whether it was unenforceable?
it does not comply with the CCA rules but then I suppose it doesn't have to- hence the unregulated name tag.
The lender has not signed the loan agreement, it is one signature for both the PPI and I thought this should have been two separate agreements, but I just don't know.
FirstPlus still say we owe over £75.000 which would put the house in negative equity of about £45,000 and the would come for me for the rest as unsecured debt?
I have separated from my wife and offered Firstplus around half the outstanding balance as full and final payment but they refuse to accept this amount, even though we would have paid back much more than we borrowed if they accepted this amount!
I now have no option but to consider getting them to repossess the house as they could only do that if the loan agreement was legal. I know it sounds drastic but I feel I have tried everything else and they are being so inflexible.

[Debt Camel]

Re: Secured loan

FirstPlus still say we owe over £75.000

How much was the loan for originally? Have you been making the repayments so far?

offered Firstplus around half the outstanding balance as full and final payment

So you have a lot of cash?

Do you mind saying how large your mortgage is? Is this repayment / IO?

I think you are clutching at straws to hope this loan is unenforceable. And even if there is something wrong with the loan documentation, that may not mean that there is anything wrong with the charge over your house. (For example, if you go bankrupt, your mortgage debt becomes part of your bankruptcy and is wiped out, but unless you keep up the repayments on the now non-existent loan your house can still be repossessed.)

[Fred]

Re: Secured loan

The rules that would apply on a standard second charge loan as follows; (assuming it is a second charge loan)

The OFT SCLG (second charge lending guidance)

The UTCCR.

The CCA 1974 unfair relationships 140a/b