Legal Action Against Alliance & Leicester

[surfingus]

Hi All,

 

We have had a family problem with Alliance & Leicester for years.

 

Long story short...... We bought a family house for about £50000 in 1987. My dad passed away in 1990 (a couple of months before he passed away he cancelled his life insurance as the recession of the 90's was kicking in).

 

We had a very hard time keeping the house over our heads. Alliance & Leicester were not very helpful.

My mum with 4 kids to raise went on benefits to help.

 

Over the years (mid 1990's), we made extra payments to Alliance & Leicester so that we would'nt struggle towards the end of the mortgage term and could finish the loan quicker. After years of hardship we ended up paying £10,000 extra in payments. Alliance & Leicester put this extra money into an seperate account. Instead of deducting £10k from the mortgage, put it against the mortgage and raised the mortgage to about £60k.

 

One year my mum forgot to re-apply for benefits so Alliance & Leicester started to withdraw money from this account. They did so until the money ran out. We were never told that they were going to use the £10k like this.

 

Now, in about 12 months time, our interest term finishes and we either have to pay the full £60k or risk losing our family home. I was under the impression we were on a repayment mortgage as I have letters to say that our balance was £47k at one point.

 

I am in the process of doing a S.A.R once we have all necessary documents, we intend to seek legal advice with a view to taking legal action against Alliance & Leicester.

 

I was wondering if anyone had any advice before I take this huge task on!

 

Any little help would be appreciated.

 

 

Thanks in advance.