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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Son & partner have a fixed sum loan agreement regulated by

Customer Question

Son & partner have a fixed sum loan agreement regulated by the consumer credit act 1974 secured on the partner's property taken out in May 2008. PPI was mis-sold and 90% claimed back via Financial Services C S several years ago as the original broker had gone into administration. This was not repaid against the loan but Para 12 of the loan terms & conditions states "if payment protection contract is not concluded for any reason, then the whole agreement will end. You can make a new loan agreement for the outstanding balance'. First Plus was the company at the time and although they knew the result of the mis-selling they did not offer this opportunity. If they had agreed we would probably have paid the loan off. Also the Agreement has been written to the detriment of one party as it also says it is a variable interest rate; one of the criteria being 'to reflect a change which has occurred or which we reasonably expect to occur in the Bank of England base rate. The rate dropped to 0.5% in March 2009. The APR of the loan has remained at 11.33%. Presumably this rate reflected the higher risk of a secured loan at the time involving a proven formula/calculation used by the financial industry at the time and was not arrived at randomly. Company repeatedly asked for explanation of how the APR was calculated and applied each year for the duration of the loan. First Plus did not respond. There are several other complicated reasons too involved to explain here (including 'unjust enrichment') why I feel the loan is unenforceable.
1) Do you think there may be a case? 2) How can I find out if there is a lawyer in our area who specialises in secured loans 3) Do you think anyone would act 'pro bono' as my son is now unemployed and is partner is about to start maternity leave. Many thanks for your thoughts on this.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you.

Have you had a Solicitor write to them and formally request disclosure of documents please?
Alex

Customer: replied 1 year ago.
No
Expert:  Ash replied 1 year ago.

Ok - get a Solicitor to write and ask. As if they do not provide documents you can make an application to Court for disclosure of those documents.

You would need to complete form N244:

http://s3-eu-west-1.amazonaws.com/hmctsformfinder/n244-eng.pdf

The Court would list the matter down and decide whether to make an order for disclosure.

They must comply with it. Then and only then will you know whether you have a case.

To find a local Solicitor you can go to: http://solicitors.lawsociety.org.uk/

If you need Pro Bono try this: http://www.barprobono.org.uk/

Can I clarify anything for you about this today please?
Alex

Customer: replied 1 year ago.
Hi Alex Not really satisfied with answer as I believe I could have researched this myself. I really wanted to know if there was a case for the loan to be unenforceable based on the non compliance with the paragraphs contained in the agreement before I consulted a solicitor. I there is no hope of successfully contesting then I do not want to spend money unnecessarily.