Dodgy Loan Dealings?

[penguinsmall]

My parents took out a loan in desperation in 1997. They saw an ad in Exchange and Mart for a company called Midland and General who were offering a loan of £15,000 with insurance over 7 years for £285 a month or thereabouts. They called the UNSECURED loan number in the ad and a visit was arranged.

A young man came out, the first thing my mother said was if it was a loan where they took your house if you couldn't meet the payment at some point she didn't want it. He assured her it wasn't. The forms were signed in my mother's house in the presence of me, my mother and the agent from M&G, my mother then took them along for neighbours to 'witness' they weren't present when my dad signed them.

After a couple of months paying £296 a month it went up to £325 because they 'made a mistake with the insurance'. In about October 1998 they hit big problems and went to a debt management company and found to their surprise they had a secured loan over 10 years and were told that because the debt management company had said they should cease payments until a new payment schedule could be negotiated that they must pay £400 per month or lose their home.

They were 62 and petrified of losing what they had worked for all their lives, so they ate less, used less gas and electricity and paid £400 per month. In 2004 I managed to get a remortgage to pay the remainder off and lift a little of the stress. When I told Mark, the mortgage broker chap he was mortified. He said they had to have a copy of the original agreement. My mother asked and got 3/4 of a page of photocopying with no signatures in evidence.

While they still owed the money they were too afraid to tackle the legalities of the matter. By the time they paid the loan off in 2004 they had paid more than £30,000 back on £15,000. After they paid it off they said they were so glad to see the back of First National Bank they couldn't be bothered, plus they said they can't afford a lawyer. If they lost the case they couldn't afford to pay fees and they are now both 70.

I think somewhere along the line something illegal transpired. How else do you sign for an unsecured loan over 7 years and end up with a secured one over 10? I am currently writing to ask for a copy of the original agreement, my parents would not have taken a secured loan, I heard the broker say it wasn't a secured loan, yet they somehow wound up in the position of being 62 and having First National Bank threatening to sell their home out from under them. The witnesses did not witness my father's signature, they weren't even in the building!

Does anyone know if there is anything we can do? And would a solicitor take it on a no win no fee basis?

[breadline]

Hi Penguin.

I would keep pushing for as much paper work out of them as possibe. Send in a data protection act release letter like you do to the banks, this means by law they have to send your mum everything, that they hold that relates to your parents account.

 

While waiting you could open the yellow pages and ask some solicitors. if you find one that seems interested, when you get the papers in, you can make an appointmnet and may be get some good news.

 

Bl