MrZ v London Scottish on behalf of another

[MrZ]

I have sent the arrears charges claim/LBA letter today. I thought I would start a thread to track progress and ask any questions I might have along the way. Wish us luck everyone!

[citizenB]

Tagging on for the ride

[MrZ]

So there has been a reply today. Basically an acknowledgement of the complaint, a promise for a final response within 4 weeks.

 

They then add a "NB: We note your intention to file a claim in the County Court. Please be adivsed as we are in Administration and you can not claim against us without our (the Administrators) permission or the permission of the Companies Court, so you may wish to defer this action to avoid costs."

 

The cheek!

[Killerschick]

Hi Mr ZI'm sorry to say that they are absolutely right in this instance.London Scottish Bank plc went very publicly into administration in December 2008 as a consequence of their failure to meet the FSA's capital FSA's capital requirements. You can check Companies House records to confirm this or just Google it and you will return plenty of press coverage from the time.I have to admit I wasn't sure of the position on suing companies in administration but after a bit of research I found that the moratorium on legal proceedings against companies in administration is found in the Insolvency Act 1986 (paragraph 43(6) of Schedule B1):-43 (1)This paragraph applies to a company in administration.(2)No step may be taken to enforce security over the company’s property except—(a)with the consent of the administrator, or(b)with the permission of the court.(3)No step may be taken to repossess goods in the company’s possession under a hire-purchase agreement except—(a)with the consent of the administrator, or(b)with the permission of the court.(4)A landlord may not exercise a right of forfeiture by peaceable re-entry in relation to premises let to the company except—(a)with the consent of the administrator, or(b)with the permission of the court.(5)In Scotland, a landlord may not exercise a right of irritancy in relation to premises let to the company except—(a)with the consent of the administrator, or(b)with the permission of the court.(6)No legal process (including legal proceedings, execution, distress and diligence) may be instituted or continued against the company or property of the company except—(a)with the consent of the administrator, or(b)with the permission of the court.[F2(6A)An administrative receiver of the company may not be appointed.](7)Where the court gives permission for a transaction under this paragraph it may impose a condition on or a requirement in connection with the transaction.(8)In this paragraph “landlord” includes a person to whom rent is payable.]Whilst you can't bring proceedings in court you may still be able to take your complaint to FOS if you are not happy with the final response from LSB. However, FOS's approach to claims relating to refunds of charges tends to look at whether the business acted in accordance with information it gave the customer i.e. were the charges imposed were in accordance with a tariff or other advance notice? FOS doesn't tend to go behind the tariff to establish whether the charge was a true reflection of the cost incurred by the business. That's just in my experience and every case is different and will be looked at on its own merits. If nothing else you will have the satisfaction of knowing LSB will have to pay a case fee of £500.00. Tactically, if your claim is for less than the £500 case fee it is certainly worth threatening FOS because they may be keen to settle to save money.Best of luckKC

[MrZ]

Thanks for the post KC,

 

I too have understood that they cant be sued. The fact that they cant sued is one thing, the cheek of it is another. In this case the fees are quite high. The loan is a secured loan, and LS have always treated it as a mortgage. I would rely heavily on the FSA ruling on arrears fees. Aside from that, they have been threatening possession proceedings. Although it may not be possible to sue them, I could certainly use the fees as part as a defense.

 

The entire loan is dodgy. LS falsified the income of the debtor in order to make the loan, they mis sold PPI, and a host of other issues. Its unfortunate that I cant take the offensive and take them to court, but given the circumstance I am happy to keep some of these arrows for the defensive.

 

I have been contemplating going to the FOS, but because they are swamped by complaints, and they don't really look at specific legal issues, it almost seems pointless. I am thinking the best option may be to just wait for them to start proceedings and then take it from there.

[MrZ]

Ok, so whilst I was waiting to see if they were willing to start proceedings, I decided to send a without prejudice offer. Basically I said that instead of claiming the PPI and unfair charges via court, that those amounts be applied to the loan and the rest written off. Basically I wont claim and the debt goes away. They then responded and rejected the offer but made a counter offer to pay 5k of the 30k (all interest) outstanding over the next 3 years, at which point they would write off the balance of 25k and mark account with the CRA's as settled.

 

Thats quite a concession. I'm tempted to accept. But if they are offering that much, they obviously know they are in the wrong. The entire agreement and selling of the loan is full of problems. I think I can negotiate further. If they start proceedings, I am quite confident I can get a much better deal from the court (rescinding the agreement). Watch this space

Edited June 21, 2011 by MrZ

[citizenB]

Watching space Seems like you have some progress, Mr Z

[MrZ]

Watching space Seems like you have some progress, Mr Z

 

Every little helps. My letter writing seems to be effective. I am spening an enormous amount of time researching too. Now I know why solicitors charge what they do!

[Kitten1]

Can I ask which address you used to write to London Scottish? I want to SAR them x

[MrZ]

Can I ask which address you used to write to London Scottish? I want to SAR them x

 

 

here you go:

 

London Scottish Finance Ltd.

201 Deansgate

Manchester

M3 3NW

[Kitten1]

Ah thanks! Wasn't sure if that address would still be 'active' with them being in admin x

[Dustyd]

Just hopping on this thread with interest

[clayton2009]

Hi there, I am hoping to make a claim for PPi from the same company, would anyone know who the PPI company was in 2006?