Legality of a Default?

[TheMarkChristie]

Hi All

After a little bit of advice

5 Years ago I was made redundant and paid a £7,800 check into RBS, However right after this the cashier paid the next person in the queues £1,000 into my account. As it was a very stressful time and I had paid Council Tax, Mortgage and a Previous Loan I didn't notice that there was an extra £1000 in the account (I just go with the balance left in the account)

It was not until there was only a few hundred pound left in the account that the Bank called and told me that they had made the mistake and they where giving me a £1,000 loan (interest free) and that I would be paying £100 a month for 10 months until it was paid.

I obviously was not happy about this and never signed any credit agreement with them, however they started taking the money out of the account each month until I noticed (3 months in)

I have been chasing them for over 3 years to try and get this wiped as I feel it was fraudulent as I never signed any agreement.

My complaint to the bank was

A) I didn't agree to this loan
B) The terms would never have suited me after being made redundant (even though I had no choice)
C) They registered a default against me for not paying

So they finally got back to me today to say that they agree they have no signed document so have no legal standing to recall the loan through the courts, but they will continue to try and get it back themselves. Also they feel that the default should stand as there is a default against a loan account in my name regardless if I agreed with it or not.

I was looking for some advise to see if the Default has any legal standing if the loan doesn't?

I had previously been in contact with the Financial Ombudsman who said that the bank are in the right as I had spent the money. (which I was not aware of at the time)

Any info or guidance would be great

Yours
Mark

[Nibbler]

Re: Legality of a Default?

As has been mentioned elsewhere, Grace v Blackhorse is one possible starting point as they are registering a default on something they freely admit they cannot and never could legally enforce

https://www.google.co.uk/#q=grace+vs+blackhorse

Was the FOS comments made in formal decision by an adjudicator? If so, have you rejected that and pushed on to get an actual ombudsman to look at it?

[nemesis45]

Re: Legality of a Default?

If there was/is no agreement/account formally signed by you and the bank there is no account to be defaulted.

I suggest a call to the Information Commissioners Office imo there cannot be a lawful default on this " loan".

nem

[TheMarkChristie]

Re: Legality of a Default?

Thanks for the info guys - just as an update I spoke to the Ombudsman again and a claim as been logged and they seem to think that it will be awarded in my favour.