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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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hi took a business term loan from Bank who made a mistake

Customer Question

hi
took a business term loan from Bank who made a mistake on calculations by forgetting to add interest amount onto the monthly payments
loan is signed and bank discovers mistake, I also did not know there was a mistake.
Bank is now saying because of manifest error they are entitled to change the amount.
I am getting into difficulty to making the higher charges which may lead to default and subsequent sequestration
financial ombudsman is agreeing with bank and offering a dismal amount for inconvenience
I am trying to argue this was not manifest error but error by the bank and they should stick with the contract.
any solutions ?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** I will help you.
Alex Watts : Do their terms allow amendment of this of say error and omissions excepted?
Customer :

One of the additional clauses says
"All notifications, determinations, and
calculations are binding except in case of manifest error "

Alex Watts : Won't they just extend the term?
Customer :

Hi

Customer :

i have been to the ombudsman, they are saying the bank can change the monthly amounts

Alex Watts :

Thank you. The only thing you can do in that case is say that the charges are excessive and amount to a penalty or that the terms are unfair.

Alex Watts :

You can ask the Court to assess the fairness of the terms under the Unfair Contract Terms Act 1977

Alex Watts :

However it is going to be hard.

Alex Watts :

As a business you are deemed to have read and agreed to terms and conditions. This means that you agreed then a Court will have expected you to agreed to them as this is a contract and you are bound.

Alex Watts :

Therefore you need to show that the bank have acted unfairly.

Alex Watts :

If the Court agrees, they can amend the terms of the contract.

Alex Watts :

As you have an Ombudsman finding against you this clearly also does not assist your case.

Alex Watts :

What the bank should do is allow the term to be extended and keep the repayments the same.

Alex Watts :

I am sorry if this is not necessarily the answer you want and certainly not the one I want to give you, but I have a duty to be honest

Alex Watts :

Can I clarify anything for you about this today please?

Customer :

I will come back to you

Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.

If the system won’t let you please click reply.

Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/

Customer :

yes
one of the additional clauses says' all notifications, determinations and calculations given or made by are conclusive and binding expect in the case of manifest error.'
Clydesdale bank says it is entitled to change the monthly payments as the calculation was a manifest error

Alex Watts :

Sadly all you can do is as I outlined above is ask the Court to assess the fairness of the terms

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