Does the lender, by law have to return promissory note on closed accounts

[bitterpill]

Hi all
I have just joined as a new beagle puppy.
I have a question hopefully someone can address?
On settled credit card and personal loan accounts, can i legally demand the return of the original wet signed credit agreement or "note". The reason is that i have heard that the promissory note can be sold off to a third party without my knowledge. Th debt is affectively paid off by the new owner of the note, but I could still be liable for the loan with new trustee of the note, even though I am still paying it back to the original lender.
So when i have settled the account' the note should be returned to me marked settled and closed? Have I a right to demand the note back retrospectively ? If so under what law/regulation? consumer protection act? consumer credit agreement?
thanks in advance guys.
n

[des8]

Re: Does the lender, by law have to return promissory note on closed accounts

My recollection from working in the City of London many years ago insuring banks is that the promissory note should be marked "paid in full" and returned to the borrower. Whether this is covered by some obscure regulation or was just good practice I can't remember.
Presumably though you have a verifiable record of the repayments you have made, so could defend any proceedings if necessary.

By the way a credit agreement is not a promissory note. I think you need to distinguish between "promissory note", "line of credit" & "revolving credit". Your post mentions credit cards (ie revolving credit) and personal loan accounts (line of credit). I see no trace of a promissory note there, which is basically security for a loan which has to be repaid on demand or by a certain date by he who signed the note to whoever holds the note when redemption comes due.

You can demand return of your signed credit agreement but I doubt you'll get it.

[bitterpill]

Re: Does the lender, by law have to return promissory note on closed accounts

thanks for des8
I am fairly new to all this , but my understanding is that a promissory note is a security or promise to pay for a loan, which is generated by my signature. under the bill of exchange act 1882, this is to be treated as cashfor accounting purposes, ie it is monetised when the note is entered into banks ledger. as i have generated the credit myself and granted access to it under certain repayment conditions, the note should be returned signed" settled and closed". if it is not returned then surely i should be given the equivalent cash face value of the original credit amount?
the security must be surrendered back to the maker of the loan , je me.? -consumer protection act 18(5)
if the note is kept then this constitutes theft?

[des8]

Re: Does the lender, by law have to return promissory note on closed accounts

I'm really not sure what your concerns are?
Have you actually issued a promissory note? If you have you are quite unusual if the only collateral was the note itself, as there aren't many (if any) financiers who would accept this from an individual . It's mostly used by companies who can show evidence of ability to repay.
A PN is evidence of a loan, the loan agreement is distinct from the PN connected to it.
Where in the bills of Exchange act does it say PNs are to be treated as cash?
What do you mean by "it is monetised "
You have not generated credit... he who loans money generates credit: you have generated debt
You use the term "security". Are you doing so loosely or in its strict sense?
I can't see where the Consumer protection Act (nor the consumer Credit Act) refers to this subject

I suspect you have been looking at certain other forums who have a somewhat unusual view of the world and have a habit of misunderstanding technical terms.

If you have a bank loan you should receive a statement annually, the final statement showing the loan repaid.
Credit cards normally have a monthly statement.
A signed loan agreement or credit agreement is not a PN or "security" & of itself is of no value to anyone other than the parties to it. A debt arising from those agreements may be sold to a third party, but not the agreement itself.

At least, that is how I remember it!!!!!!!!!