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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I lost my business in 2010 due to financial difficulties. I

Resolved Question:

Hi,
I lost my business in 2010 due to financial difficulties. I had debts 0f £34000 to a wholesale supplier for goods bought. Also £42000 to a bank for a business loan to buy the business. I couldn't pay the money at the time so both put a charge on my property. I am now selling my property. They have provided my solicitor with a final payment to make for release the restriction on my property. The interest is £16000 and £20000, respectively. Since the restrictions were put on I haven't received any statement of interest from either of the parties. Under Section 77 of the CCA it statements should be issued every 12 month or interest will not be payable. Would this apply to these debts/loans.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

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

Was it a regulated agreement by the consumer credit act?

Customer: replied 1 year ago.
Hi Ash,
Thank you for your offer but I think an additional £44 is a bit steep after paying £47 already. Wouldn't a bank loan be automatically be covered by a CCA. I just wanted advice so I could have my solicitor write to the involved parties.
Regards
Peter
Expert:  Ash replied 1 year ago.

How much was the bank loan for and when was it taken out? Was it in your name or the business name?

Customer: replied 1 year ago.
Hi Ash,
The bank loan was for £50000 and it was in my name.
Regards
Peter.
Expert:  Ash replied 1 year ago.

But when please?

Customer: replied 1 year ago.
Sorry, it was December 2201.
Expert:  Ash replied 1 year ago.

Can you just clairfy the date please?

Customer: replied 1 year ago.
Sorry again Ash I was in a rush to go out, it should read 2001.
This was the information I was working from regarding the Consumer Credit Act. It appears to me that all creditors should be adhering to this.
http://www.netlawman.co.uk/ia/required-statements-regulated-agreements
Regards
Peter.
Expert:  Ash replied 1 year ago.

This would indeed apply to regulated agreements by the Act. Sadly you do not have this as your agreement was for £50,000. The limit under the 1974 Act, but under the 2006 Act this was removed, but does not apply to retrospective agreements.

Therefore as it was not a regulated agreement it does not become a regulated agreement and therefore they do not have to send you the statements as required.

As such its not regulated and therefore this does not apply to the CCA.

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

Can I clarify anything for you about this today please?

Ash and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Thank you for your help and clarification of the issue.
Regards
Peter.
Expert:  Ash replied 1 year ago.

Im sorry its not better news. Sadly the 2006 remove the upper limit so all consumer agreements are now regulated.

But sadly this does not apply here.