Loan question

[coastalad]

Hi, about 2 years ago my bank co-op telephoned me to say I had been pre approved for a £2000 loan. At the time I was on Benefits of £150 a fortnight and had been for at least 18 mths, how they came to that decision baffels me? I told the guy on the phone that £2000 would come in very handy!! He then told me that he was putting the money straight into my account to spend immediately, no questions asked!! he just told me he would send out the agreement forms in the post. THEY NEVER CAME!!! I spent the £2000!! as you do..lol
About 2 months later on I get a letter to remind me to send back the completed loan forms. That is the only letter I have recivied from them on this matter. I now bank with Natwest.
Do you think they realised they've ballsed up and have written it off?
Do they have any legal right to claim money back with no loan agreement?
Thanks for reading
coasty

[ByTheWay]

Re: Loan question

Hi Coasty, so you are saying you've not heard anything from Co-Op since that letter nearly 2 years ago?
Legally, they wouldn't be able to enforce collection of the loan through the courts as there is no paperwork or agreement, but thats not to say they won't try at some point, particularly if they pass it onto a debt collector. Was the money paid directly into the account which you do not have/use anymore? How long ago was the account closed?

I must say, I think the fact they gave you a loan whilst on benefits without any income/expenditure info was incosiderable lending! And all without you signing anything!

[Amethyst]

Re: Loan question

Hiya - did you contact co op after this letter asking for return of the forms ?


I do think we have to consider that they could claim this money was paid to you in error, thus the Theft and Fraud Act may come into play. Without the CCA they couldnt impose interest rates or repayment terms on you, so at a guess you would only be liable to repay the money you have had and spent, plus standard stat interest at 8% if they tired to go to court with it.

I agree with bytheway in that it is certainly irresponsible lending, also irresponsible borrowing but at a time when things are running so tight for you then it is understandable to jump at an offer like that.

Also wondering why you are asking this now, 18 odd months after last contact with the coop regarding the matter - has anything happened recently ?

[stevokenevo]

Re: Loan question

I dont think it could be theft or fraud if it was lent on a verbal agreement. Just about the only thing they will have is the recorded telecon offering the money.

I would sit tight, and deal with it if or when it cropped up. I certainly wouldnt be wasting any time worrying about it.

And i wouldnt stir the hornets nest by making any enquiries about it either :okay: lol

[Amethyst]

Re: Loan question

aye agree with you there stevo, if nothings happened recently I'd just leave it until it does, if ever.

[ByTheWay]

Re: Loan question

irresponsible lending

thats the word I meant lol!
I agree with Stevo and Amethyst, if they're not chasing you for it then there's no need to do anything.

[coastalad]

Re: Loan question

Firstly thank you for the replies guys
I only started wondering about this when I was looking up some info about baillifs for a friend of mine.

Looks like I'm going to let 'sleeping dogs lie'
Ohh How will I live with myself....lol

once again thanks
coasty

[Amethyst]

Re: Loan question

lol sounds like a plan. If anything does rear its ugly head before 6 years are up let us know.