Credit Agreement - Is it Correct?

[tiatia]

Hi, Hoping someone would be able to offer advice, I have been reading threads and getting more confused. This is still ongoing and is longstanding but will try to explain as unsure if it is correct executed.

Credit Agreement Regulated by the Consumer Credit Act 1974. Pre 2007. This is on what is title The Schedule

A. Description of Goods Services - Replacement Windows £5845.00
Less Deposit 50.00
Amount of credit for goods/services 5795.00
B.Protected Payment Premium 796.74
c.Total Loan Facility 6591.74
D.Rate of Interest per month 1.89%
(variable in the event of change of base lending Rate)
E.APR 25.3%
(No account of any variation of the rate or of the
amount of interest payable has been taken)
F. Anticipated Number of monthly payments 120
G.Minimum Monthly Repayment £147-36
H. First repayment is to be made 4 months after dispatch of loan payment to supplier. The customer will be notified of the date. Subsequent repayments are to be on that same day each month. £20.00 acceptance fee is payable with the first repayment.

I do believe we were missold the ppi . The ppi was a single premium added on at the beginning, it only covered 5 years of the loan -not the full ten and it only covered one of us and it was a joint loan.

The terms and conditions are a crucial part of making it enforceable but I have a few questions.

Under conditions on loan agreement it states Payment of the amount to be lent to the customer, being the Total Loan Facility as set out in paragraph C overleaf(the loan)
(ie 6591.74 on agreement) will be made on satisfactory delivery of goods. Then further down it states The acceptance fee is debited to the outstanding balance on payment of the facility.

On letter sent out with signed loan agreement later it states On receipt of signed satisfaction note (we have two in the house unsigned) your account will be opened and interest will start to accrue. You have elected to take our deferred repayment scheme. Please not that interest will be added to the account balance during the deferred period.

THERE IS NO MENTION OF A DEFERRED PAYMENT SCHEME on agreement.

Next letter coming states

We have made payment under your loan facility to Window company.
An account has been opened in your name and has been debited with the sum of £6611.79.

Advance - £5795.00
PPI - 796.79
Acceptance Fee 20.00

Subject to any variations under the terms of the agreement, the total loan facility is to be repaid by an initial repayment of £167.37 which includes the acceptance fee of £20.00 and 119 repayments of £147.37.

So are they saying the total loan facility is now £6611.79 and not 6591.74 as stated under total loan facility on agreement. We paid the 20.00 with first instalment. PPi letter also states total advance as 6611.79.

ALS0. The PPI is 796.74 on agreement, now it is has been changed to 796.79 with no notice.

Re cancellation rights- the agreement states you can cancel with five days. but there was no condition on agreement to say the ppi could not be cancelled and yet when it came it said this. I believe all rights must be within a single signed document and parts may not be sent seperately .

The apr per annum and the interest rate per month appear to be the same. I cant work out the apr to get 25.3.

Any advice appreciated. Thank you

[tiatia]

Re: Credit Agreement - Is it Correct?

Tried to work out Apr again today. It states 1.89% per month on agreement so am i right in thinking this is 25.3 per year.same as Apr rate on agreement?
Also worked it out on a deferred loan repayment calculator to check the monthly payments. If it was on total including the ppi as ppi was meant to be optional and not compulsory to get loan then payments should have been higher by Approx 20 per month. The payments appear to have been calculated on the amount without the ppi. Does this mean they have actually included the ppi in the total charge for credit.
Sorry for so many questions but trying to make sense of it is difficult?
We are still being chased for this and are disagreeing with it.
Any help appreciated.thank you

[enaid]

Re: Credit Agreement - Is it Correct?

Bumping for help [MENTION=1937]nemisis[/MENTION]45 and [MENTION=6]Amethyst[/MENTION]

[nemesis45]

Re: Credit Agreement - Is it Correct?

Good morning, welcome to LB.
I can't get it the APR to 25.3% either.

Have you taken up the " discrepancies" with the creditor?

Were " obliged" to take the payment protection insurance in order to have the loan?

nem

[Diana M]

Re: Credit Agreement - Is it Correct?

We are still being chased for this and are disagreeing with it.
Any help appreciated.thank you

Who is chasing you for this account and why?

I note you also say that the terms and conditions are crucial to whether the account is enforceable.

So does this mean that you are possibly in a debt situation and need help to prevent any potential legal proceedings against you?

In which case do not write to the creditor to educate them on any discrepancies which you believe exist until you've posted up the background to your enquiry in case there's a better or different way to deal with this issue.

Are you studying the credit agreement which you have kept in your own files or is the agreement a document which was subsequently sent to you by the current owner of the account (perhaps in response to a s77 CCA Request)?

Sorry for all the questions but in order to give you a useful answer, your question needs to be put in context.

If the account has been sold to a debt purchaser you may be able to make a PPI misselling claim against the original creditor. Or if a claim is issued you may consider a counterclaim for missold PPI

Di

[tiatia]

Re: Credit Agreement - Is it Correct?

It was sold to asset link. Schedule of inhibition s now come from them. Tried years ago to take up discrepancies with them asset link but brushed off. Recently received another schedule of inhibition, our third i think.

Initial loan from FNB, an abbey national group company and decree was first obtained by them in 2000. Abbey sold FNB to ge money in 2003. FNB sold to asset link in 2005. I was thinking it should be Santander who now own abbey and i should take up the discrepancies about the loan and ppi with them?

As to being " obliged "to take ppi to get loan it states On the agreement it was optional but i don't know now if it really was as unable to cancel it and can't get Apr etc to work out and was it put into the correct part of the agreement?

[Diana M]

Re: Credit Agreement - Is it Correct?

Do you live in Scotland?

I'm guessing you do by what you've said so far.

Di

[tiatia]

Re: Credit Agreement - Is it Correct?

It is the DCA who have the schedule of inhibition against us.
This is our only debt and yes i am concerned they will take further action.
We have already paid approx £8000 and DCA still requiring £9700.

I have the original credit agreement, original ppi document and letters from them.

- - - Updated - - -

Yes we live in Scotland

[Diana M]

Re: Credit Agreement - Is it Correct?

From what you say in 2000 the creditor obtained a decree with a time to pay direction in the Sheriffs court. You've been paying since then but are no longer able to keep up with the payments.

Your objective is to get a recalculation of the sum owed to reduce it. Perhaps by questioning the PPI element of the original loan and any interest that flows from that.

Or do you have a different aim?

Di

[tiatia]

Re: Credit Agreement - Is it Correct?

When the decree was granted in 2000 we paid the installments due. Then i began looking at the agreement. I disputed the debt in approx 2005/06/07. In writing. I also offered a settlement (stupidly on phone) they refused.Since then we have not paid. The debt has stayed at £9700 for w while. I am epileptic and took a stroke and i supposed buried head in sand.
Now we have recently received our latest inhibition and i want this matter settled.it has gone on too long.
My aim is that i don't owe the amount they claim. I would like to reclaim the ppi as it was missold and i would offset this to the debt happily.

I also believe though that if it was an improperly executed credit agreement (details of agreement above) or an unfair relationship i would like to take it further and clear the rest of the debt.

[Diana M]

Re: Credit Agreement - Is it Correct?

If your decree was seventeen years ago I doubt you'd be able to resurrect those proceedings now albeit I'm not familiar with the Scottish legal system (you don't have CPRs )

The attitude might be that you should have raised the improperly executed agreement legal argument at the time.

The missold PPI may be worth exploring but again this is not my area of knowledge.

Once a decree has been made which includes the PPI I'm not sure if you can revisit the issue.

I think you need help from a Scottish legal advisor or maybe call Shelter Scotland if there's an inhibition involved.

Di

[tiatia]

Re: Credit Agreement - Is it Correct?

Sorry I meant that the restitution would be the rest of the debt being cleared.

[tiatia]

Re: Credit Agreement - Is it Correct?

I wondered if it could be argued under section 140a of the consumer credit act.
A/ unfairness of any term of the agreement or related agreement
But/the way in which the lender has exercised or enforced his rights under the agreement or any related agreement
C/any other thing done or not done by or on behalf of the lender.(before or after making the agreement)
The ppi- because of plevin would allow me to claim this asand i could try to raise the improperly executed credit agreement at the same time ?

[Diana M]

Re: Credit Agreement - Is it Correct?

I meant that the restitution would be the rest of the debt being cleared.

That would be nice but you already have a Decree and an Inhibition (the third because they only last five years?) so I think you may have an uphill struggle to 'downsize' (for want of a better expression) this debt unless you are in a position to make an attractive Full & Final offer to settle the balance outstanding in one hit.

Talk to Shelter Scotland about the Inhibition > http://scotland.shelter.org.uk/get_a...rs/inhibitions

Di