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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 32177
Experience:  Over 5 years in practice
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Dear Sirs My bank sold me an interest rate swap agreement

Customer Question

Dear Sirs

My bank sold me an interest rate swap agreement in 2008 the swap was for £500,000 and was against a loan of £1.7M I have now cleared all but £230,000 of that loan. In 2010 I transferred all the assets from my old company to a new company with the banks blessing. All the property charges were transferred and the bank continued to take payments from the new company in 2012 I was approached by my bank manager who said that the bank had made a mistake when the charges were transferred because they had forgotten to transfer the IRSA agreement. The bank claim that because they have been taking money every month from the new company without complaint on its behalf they can claim estoppel.

I would like to refinance with another bank but am worried that my existing bank would not be willing to release the propert charges and would take my company to court to enforce the old agreement.

Please would you let me have your opinion on this.

Kind Regards

Submitted: 5 years ago.
Category: Law
Expert:  Alex J. replied 5 years ago.

Thank you for your question and welcome to Just Answer.

What is preventing the bank from allowing you to simply assign the IRSA to the new company now? Are they suggesting that they want to claim these payments from Old Co as well?

I have to go off line shortly so if I do not hear from you I will be back on line by 9am tomorrow (otherwise periodically throughout the night).

I look forward to hearing from you.

Kind regards