How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask leanne-jones Your Own Question
leanne-jones
leanne-jones, Barrister
Category: Law
Satisfied Customers: 183
Experience:  Barrister
73696840
Type Your Law Question Here...
leanne-jones is online now

Good morning In1994

Resolved Question:

Good morning In1994 myself and my wife signed a loan agreement with Lloyds. It stated that any future loans would automatically be secured on our home. In 2006 I increased the loans by a considerable amount and did not tell my wife. I understand that from 2006 the law changed and the bank had a legal obligation to advise my wife on each occasion that there was an increase in the liability on our home. The bank did this once out of 7 new loans. Is this legal and is SHE liable for the increase lending Richard XXXXXX

Submitted: 4 years ago.
Category: Law
Expert:  leanne-jones replied 4 years ago.

leanne-jones : Hello - my name is XXXXX XXXXX it will be my pleasure to assist you today.
leanne-jones : You are referring I think to the Consumer Credit Act 2006 is this correct?
leanne-jones : Have the bank admitted liability?
JACUSTOMER-kfh1eeq2- :

That is correct and no they have not.

JACUSTOMER-kfh1eeq2- :

They did send one only notification saying that it was now a legal requirement BUT from then on they did not advise my wife.

leanne-jones :

And was the notification before or after you completed?

JACUSTOMER-kfh1eeq2- :

On this one occasion it was before BUT on the following 6 new loans they did not inform my wife at all

leanne-jones :

Thanks. The new Act amends the existing Consumer Credit Act.

leanne-jones :

What this means is that under the old Act if there was a defective in the agreement or procedure then the whole agreement may be unenforceable - so the debtor would not pay

leanne-jones :

Under the new Act the Court can amend or rectify an agreement, procedure etc and then the agreement is valid

leanne-jones :

So as the agreement is governed by the new law, if it went to Court the Judge could overrule the defect.

leanne-jones :

Clearly if the loan is in your name, then you are liable to pay and not your wife.

leanne-jones :

Of course the loan would be secured on the security of the house in any event, but if there was an issue your wife could, potentially issue proceedings against you or possible the bank for negligence

leanne-jones :

Does this answer your question?

JACUSTOMER-kfh1eeq2- :

Thank you

leanne-jones :

Welcome. Please remember to give my answer a great rating - thank you. If there is anything else I can help with or clarify please let me know

JACUSTOMER-kfh1eeq2- :

What would be required to issue proceedings against the bank as they clearly did not act within the new law

leanne-jones :

You would need to go to the County Court and complete form N1. There would be Court fees to pay.

leanne-jones :

You would really need a Solicitor to draft documents and represent you in Court. If you win then the Judge can award costs for you.

JACUSTOMER-kfh1eeq2- :

I am sorry what does overrule the defect mean?

leanne-jones :

But if you do lose, then not only would you have to pay your own legal fees, but those of the bank

leanne-jones :

If there was a requirement to notify you, the Court can say, well thats ok it does not matter

leanne-jones :

Unless I can help further I hope you have a good weekend

JACUSTOMER-kfh1eeq2- :

I am sorry but I dont understand.

JACUSTOMER-kfh1eeq2- :

I am sorry but I don't understand. Did the bank have a legal obligation to notify my wife on all occasions or not.

leanne-jones :

Ok. Under the old rules if a requirement or rule had not been followed then the agreement would be unenforceable

leanne-jones :

Under the 2006 changes, any rule or requirement not complied with, a Court can make the agreement enforceable, even if those requirement had not been met or complied with

JACUSTOMER-kfh1eeq2- :

I am sorry but I don't understand. Did the bank have a legal obligation or not to notify my wife or not.

leanne-jones :

Yes. But that does not necessarily mean the agreement is unenforceable

leanne-jones :

Does that clarify for you?

JACUSTOMER-kfh1eeq2- :

I am sorry but I don't understand. If it was the law did the bank have a legal requirement to notify my wife or not? If not what grounds would the bank have to justify their negelct in this matter. How could a judge ignore the law?

leanne-jones :

Justification is a different matter.I am saying that the bank can still enforce it with a Court order

leanne-jones :

The Judge has a discretion whether or not to allow the agreement to be enforced

leanne-jones :

I am not saying the bank will win - what I am saying is that the bank would require a Court order to enforce the agreement

JACUSTOMER-kfh1eeq2- :

Many thanks !!

leanne-jones :

I hope this clarifies it for you. I realise that this is frustrating but it would be for the bank to make the agreement enforceable not the other way round

leanne-jones :

Please remember go give my answer a great rating, it only takes a moment. Thansk

leanne-jones, Barrister
Category: Law
Satisfied Customers: 183
Experience: Barrister
leanne-jones and 3 other Law Specialists are ready to help you
Customer: replied 4 years ago.

Sorry just a thought. As the bank set a precedent in advising my wife on
one occasion on what grounds could they apply to a court to overide the law

Expert:  leanne-jones replied 4 years ago.
Not override but seek enforcement, because the monies are due under the agreement and subject to security.

Expert:  leanne-jones replied 4 years ago.
I'm just following up with you to see how everything is going. Did my answer help?


Leanne
Expert:  Nicola-mod replied 4 years ago.
Hello,

I'm very sorry but leanne-jones is no longer available to answer questions. I've been working hard to find another Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola