I have received a form N5c and a repossession claim set for 4 April 2014 In 2005 with a friend I bought a rundown shop to knock down, build a new one and turn it into a business. The Bank agreed to fund a percentage of the purchase price and to finance the build when we attained planning permission. On this basis we bought the shop!!! Flat March 2007 I bought a flat. The bank had a legal charge over this (see legal charge referred to in The Bank POC) It was my intention to let out the flat and to apply for planning permission to extend it to the side to create a small flat for me to live in. September 2007 I attained planning permission for the small flat. I was given a further unsecured loan for £50,000 October 2007 the overdraft was increased for 14 days at a cost of £200 and secured without my knowledge to the flat I owned. Late 2007 my friend and I attained the planning permission to knock the shop down and build a new one. We had paid the loan for a year and a half whilst we applied for planning permission. The loan repayments and planning costs were in excess of £30,000. As we now had planning permission we asked the bank manager for the agreed funds to build the shop. Our bank manager said he couldn’t fund the build, this is when the credit crunch hit. As we couldn’t therefore develop the property we were left with a rundown dilapidated shell. My friends core business couldn’t therefore expand. His business was with the same Bank and they restricted his cash-flow so he didn’t have any money. I was then left paying the loan for the shop. I was therefore left trying to build the flat and at the same time pay for the loan repayments on the shop. As I was paying the loan my cash-flow was affected and my current account was being charged with unpaid charges of £35.00 and referral charges of between £40 and £90. I complained to th Bank through my bank manager about these charges, he said he would look into it, he never gave me a reply. As my cash-flow was impeded the bank manager then agreed to increase my overdraft for a short period and charged me another £800.00 for doing this. I explained that this whole thing was spiraling ant that the bank were just milking charges. My Bank manager agreed told me he wasn’t happy with how the bank was changing and the things he was being asked to do, he sadly left after having a nervous breakdown. His replacement confirmed that the Bank still wouldn’t loan for the build of the shop and told us that the Bank were calling in all their property loan facilities around the country. The shop had now been empty for 2 1/2 years. In its dilapidated undeveloped state we were forced by the Bank to put the shop on the market for sale, this was during the price crash at the bottom of the market. Due to this situation I became ill with depression and reactive arthritis and couldn’t work. Whilst the shop was on the market for sale I continued to struggle to pay the loan repayments and referral fees were charged to my account along with the occasional £35 cheque return fee. Inevitably the overdraft increased again with a fee to cover these charges. I again complained with no response. July 2008 the overdraft was increased to £60,000 for a period of 4 months with another fee. September 2008 I was bouncing cheques again December 2008 I paid some money in that I borrowed from a friend. the overdraft was then renewed and reduced to £50,000 This renewal was charged again at £750 January 2009 a bank manager I had not met before rang and wanted to meet me urgently. He came out to a tea room with two loan agreements backdated with someone else from the banks signature. I remember this and thinking this was odd. One was for the £68,000 and the other was for the £65,000 he was in a hurry and said that these had to be signed now otherwise the Bank would call in all of my facilities. A few days later I then got a letter acknowledging receipt of the agreements I had signed it stated: ‘I note that we are yet to receive information relating to your sources of income to confirm serviceability of the interest repayments’ One of the agreements I signed was for a previously unsecured loan, they had now managed to secure this against my flat. These new loans were now exempt from (sections 16B and 189 (1) and (2) Consumer credit act 1974) April 2009 we eventually sold the shop, the shop loan was cleared and in August 2009 my latest bank manager left as he couldn’t cope either, he left to work for one of his clients and charged another renewal fee. The stress and uncertainty due to this situation was unbearable for me, I was still living with depression and couldn’t function or work properly. January 2010 I was emailed by a special relationship manager to arrange a meeting with me and his colleague a Senior bank manager’s, he wanted to understand the risks to myself and the bank. I then met with them in a cafe. They knew I was struggling and offered to consolidate all of the borrowings at 5-6% over base. I was paying 2.5% over base at the moment. I explained that the overdraft was made up of unfair charges and fees. One of them then said ‘I don’t understand why you don’t want to make an agreement and risk losing everything including your family home’ I said I’m not risking it, that’s just unfair and untrue, the only reason I’m here is to discuss with you the way forward, I am happy to work with you and the Bank to move forward, but I’m not happy with these bully boy tactics and I think its unfair of you and the banks to try and mislead people into getting them to sign up to agreements with raised interest rates’ The next day I copied them the minutes of the meeting. I heard nothing for a month and then I received an overdraft facility written on the 27th February 2010 that expired on the 18th February 2010 signed by my Special relationship manager. This was confusing and worried me further. I rang my special relationship manager on several occasions to ask what was going on. I had no reply for a while. 07 June 2010 I sent a letter to the ‘Senior Bank manager’ that I’d met in January to ask what was going on. I said I was worried about the changes of managers. I explained that I didn’t understand the agreement that the special relationship manager had sent on the 27 February 2010 and that there was so many things wrong and I didn’t understand my accounts and the various agreements. I disputed the amounts as I didn’t think the figures were correct because of all the previous unfair charges and high fees and account changes. 09 June 2010 I received a letter dated 28th May 2010 being a formal notice of intention to file a default The Notice was served under section 76 (1) and 98 (1) of the consumer credit act 1974 for account number xxxxxx (This was the overdraft account.) It stated: Your overdraft is repayable on demand being made by the bank and such demand will terminate the overdraft arrangement. The bank intends to demand payment of the total amount outstanding as set out below (if necessary by Court action) and accordingly terminate the overdraft arrangement on or after 14th June 2010 unless by that date you have made an alternative arrangement for repayment which is acceptable to the bank. Principal sum £ xxxxxx interest to the date shown above £ XXX Total outstanding £ xxxxx This gave until 14th June 2010 14 days from the 28th May. The amount was still in dispute and It did not give time to remedy 9th June 2010 I therefore sent a Subject Access Request to request my paperwork, various stalling tactics were used by the Data controller at the Bank in order to not send me my paperwork. 11 June 2010 I then received a letter from the senior bank manager acknowledging my letter and complaint of the 7th June 2010. 25th June 10 I received a letter dated 21 June 2010 stating that ‘where your accounts are regulated by the consumer credit act you have failed to comply with the requirements set out in the recent default notice/termination notices served on you. By this further notice we are terminating all banking facilities, please now make alternative banking arrangements. Your current account will only be available to accept credit payments to reduce/repay the debt. We now demand that you pay no later than 7 days from the date of this letter the total amount outstanding on the accounts as detailed above. 26 June 2010 I then received a letter from another bank manager, this had a slightly different and softer tone saying they’ll give me 8 months more time to build and that I should pay the tenants rent into the overdraft account. (This is the one they terminated) 9th September 2010, 90 days after the original subject access request and after further persistence, I eventually received incomplete paperwork I do feel that things would have got much worse if I hadn’t recorded conversations and then notified the Bank of this fact. I started again to build the property on the side of the flat. However I had to stop again and reapply for planning. I explained this to the Bank. They left me alone for a time whilst I have been building. However for the last 9 months the Bank has been sending me 15 day possession notices. January 2013 The Bank wrote to me confirming formal demand for the total sum of the overdraft and two loans was made in June 2010 and that they had not received satisfactory repayment proposals. January 2013 I wrote back and said I have outstanding complaints and asked what settlement they would be happy with. February 2013 They wrote back and said there wasn’t any outstanding complaint. March 2013 I rang and complained that they didn’t recognize my complaints, and asked if they would freeze interest whilst they were looking into my complaint. The lady said no. I asked what proposal was acceptable she said you must pay the balance of all of the money within 7 years minimum. March 2014 The bank sent a letter saying they were going to send a Surveyor to value the property. March 2014 I received a 15 day notice of possession Proceedings Notice. April 2013 I complained again and told the Bank that they were deliberately ignoring my complaint. I explained I was paying the rent into the overdraft account. I offered to pay the rent into the account for 7 years (their default would have dropped off) and then I would remortgage. I asked them to confirm if this was acceptable. June 2013 The bank wrote bank and said 'they were not able to agree with my complaint. I am sorry I am also unable to agree with your complaint about the closure of your accounts being unfair treatment. This is because your accounts are not closed, but open and non-operational in line with Bank policy.' They ‘acknowledged my comments about being treated unfairly and agreements being forced upon people. They replied ‘ that all new applications/products are offered in line with stringent application processes that are regulated by the FSA. Furthermore each application is provided on the basis of completed affordability checks as well as other assessments. I must now advise that unless you’re in a position to make continued monthly repayments of £2355.82 the bank will enforce debt recovery against xxxxRoad (the flat) This is a non-negotiable figure. January 2014 the Banks Solicitors wrote to me stating: they were going to issue court proceedings. They said the following options are available to you: 1 Repay the full amount outstanding or refinance 2 Put forward alternative proposals you may wish our clients to consider Jan 2014 I sent a letter to the Bank and complained again about the charges on the overdraft and the way I was treated with my accounts being closed and defaulted. I offered a full and final settlement figure of £ 65,000 (offered to me by a family member) I had no reply from the bank so I rang them and they said they were not taking further action. I have still to this day not received a reply to my offer of settlement. 27 January 2014 I sent a Subject Access Request to understand my position. I’m still awaiting to this day for my data. 24 February 2014 I received a N5c Claim for possession form from the Court I have been living in a campervan and have spent every spare penny on this flat. Even though not all the services are connected I now stay in the flat when I’m working there and intend to finish this in 6 months (cash permitting). To this day I have continued to pay all of the rent into the overdraft account. This is the account I cannot use as it is terminated, this is the account made up of all of the unfair charges. The balance has reduced marginally in 4 years due to the rent payments. All the money I earn I have used to continue the building, for weeks I’ve had nothing. It is not easy building with your bank account being unuseable. As I have a default issued against me I cannot get finance and I have continuously hanging over my head the threat of knowing that at any point the Bank can step in and take the property. The Bank has been waiting for me to create value with the intention of taking the property has been sole destroying. I do believe I have been treated unfairly and that for 7 years I have been caught in a dark place. A place made up of them promising to lend and then changing their mind and then for 7 years paying their fees that are a consequence of their actions. Now the Bank has had the flat valued and have seen it is almost built and only needs a few thousand pounds to finish it off the Bank have sent a possession notice. I have continually made offers in writing and on the phone and have complained that the figures are unfair and incorrect and in dispute. They ignore the complaint and tell me whatever I offer is not enough. I have even asked them what they would accept. They have told me that they require the whole lot paid back in 7 years, this works out at more than £2355pcm and is ‘non-negotiable.’ The rent is only £350pcm. They know I cannot afford this. The Bank relies on the fact that as they have issued a default notice I cannot borrow elsewhere over a longer more affordable period. As per the Lawrence Tomlinson Report he accused RBS of operating like a "hit squad" by withdrawing lines of credit from healthy firms and burdening them with huge fees so they could seize the businesses assets, normally property, at discount prices. All I have tried to do is to build myself a property, If the bank repossess I have been through this nightmare for 6 years for nothing, The tenant in the flat I own next door to the one I am building is vulnerable and doesn’t work due to mental health reasons. She has a six month tenancy agreement and we get on really well, she doesn’t want to leave. This forum has given me hope and I now feel I may have options, I can see that numerous other people and small businesses also had facilities chopped and changed, or stopped. It is now evident that during the credit crunch Government banks in particular needed to shore up their balance sheets and manage down exposure for certain assets, property related in particular. Escalating loan charges, and repossession had become profitable for these banks. Many small businesses were manipulated and treated unfairly by the banks. The banks have disproportionate power in their relationship with their business customers, small businesses are unable to fight back. I do not know how to move forward or deal with them so I am looking for help. 1) Do I defend the repossession and deal with the unfair relationship and claim back the unfair charges and costs during this defence? or 2) Do I put in a separate claim for unfair relationship? 3) I do not know how to defend this repossession or challenge the agreements and unfair charges. Thank you Kind regards, SittingDuck