I am a single mother aged 58. In 1986 with all the hype at the time, I decided to come off the dole and open a shop. I went to NatWest to get a loan for #7,000; we had one meeting during which there were no discussions of the nature of my business, business plans etc. Then they gave me the money, it was so easy! At the time I did not know the implications of the charge they put on my home.

It turned out that the money I paid had not been to secure a lease on the shop and after hospital treatment and illness the shop closed down in 1989. I am now aware that I had been paying for loan protection up to August 1990, however I never claimed on it. I was so stupid and the bank didnt help.

Towards the end of 1990 after the arrears and threats mounted up, Nat West forced me to take out a consolidated loan of #12,000, which had an interest rate of 18.5%. This replaced my loan, which stood at #9,500 including arrears with an interest rate of 7.5%. And it also paid of my #2,500 overdraft that I had with them. They did this even though I was unemployed and they knew my position was unlikely to change.

They used an incorrect agreement form and they didn't give me the 7-day cooling off period before I signed. In 1995 when the debt was #16,000, friends and family helped me offer them #10,000 they refused to negotiate and discuss the matter and continued to demand full payment to prevent repossession.

Although I do voluntary work I remain partially disabled and I have been unable to stop the annual foreclosure letters the most recent of which again threatens repossession. Even though I have paid off between #5,000 & #6,000 the debt must have escalated with penalties and high interest rates as it now stands at over #25,000.After reading information on your much valued web site I realise I can not force them to respond to my requests for figures before 1992 so I am unable to check. Other than my mortgage I have never had a credit card, used HP or borrowed money, I have always saved up for what I needed, however, I have made this one mistake and it has been a nightmare since. I am at the end of my tether as they wont agree a negotiated full and final settlement and to rub salt in to my wounds they claim to support small businesses with advise which has never been the case with me. If anyone has experienced similar problems and can suggest a plan of action I would be forever in their debt.

-- Rose Lockyer (lel@spinkscott.freeserve.co.uk), September 15, 1999

Answers

There are many questions i wish to look into on this ,problem as re signing of security ,without legal advice ie solicitor ? was house valued at the time by a drive by method(this was system bank managers used at the time to value a house -just drive by and see if it was worth it The other points at the time the government and the banks were engaged in support for business by working along side the Government to assist people get off the dole and by a course which was free you were ,after it was all approved given an allowance and full business support and advice and think it from memory you were given #50 pounds per week in first year(will have to look records up on this)for exact figure and duration To take a a further loan out when you were unemployed with no reasonable means of paying it -needs further investigation and also were are all your cashflow and accounts? incorrect form -further deatails on this please not being told of your loan protection WHY? no duty of care appears there you state you are not working -is any payment from Dss going towards this mortgage forget 1992 you go back on this to 1986

and if as mapped out from your email,there have been alot of case law on this you may have a case for counterclaim against the bank they also have to give you a duty of care and also have contractual duties both under the advice given-insurance -ensuring you understand and if not advising you on seeking legal advice at the time-i would also like an accountant to go over these figures and see the interest and how it came about- these then should be taken further to a lawyer and if you are not working may be entitled to legal aid which if you got ,would all most certain to go to a barristor for his opinion (this would be one that specialised in banking matters

hope this as helped you so far if you require any further details - please email me direct

yours

Charles Twford

-- charles twford (charles.twford@btinterne.com), September 15, 1999.