Undue Influence?

greenspun.com : LUSENET : Repossession : One Thread

I am facing a possession claim to be heard in court on 4 August. In 1990 I agreed (but cannot remember whether I took advice - all I know is that a bank employee is shown as a witness to the charge document) to a Business Development Loan of #36,000 said to be in our joint names but in fact all the money went into my husband's sole name business account,even though I had my own account. In February 1993 another BDL was taken out to repay the earlier one and clear my husband's overdraft. The borrowing then was #83,000 in total. As a condition of this business development loan it said that the bank (in the facility letter) wanted my husband's account to become a joint account but they did not do this. They said that they relied on the security previously given. They added in the letter that they thought we should sell our house (and would look at this at the next review date but did not say when this would be) but my husband did not want to do sell. Had I realised that the bank had security over the whole amount I may have been less happy to sign it all over, this would have probably meant that my husband's IVA would have started sooner. I guess though that I would not have been liable for the overdraft that my husband had run up (#45,000).

The bank say they called the loan in in August 1993 but it only now in June 2000 that they have taken proceedings to possess our home. Is there a time limit for them to start an action against me/us?

My husband had an IVA from July 1993 to 1999 but in 1996 the bank wrote to me and said that they wanted to clarify their position regarding secured and unsecured borrowing during my husband's IVA. They said that they would value the security at a fixed sum between then and the end of the IVA and that this value would be the maximum amount claimed under the mortgage with the balance being treated as unsecured and subject to the IVA. They then said that at that time they thought the value was #6/#7000. They are now saying the house is worth #160,000 (it probably is) and that after our first mortgage of #80,000 they can have the balance. House prices have not gone up that much since 1996, so where did they get a figure of 6/7000 form? Does it matter? In any event I did not argue aver the amount as I thought they would only be seeking a reduced amount as their letter implied.

I accept that the borrowing was #83,000 and that most of it was outstanding at the end of 1993. However my husband dealt with this and I signed when he asked me to do so.

Have I any chance of a claim that the bank have acted wrongly, can the Barclay's Bank case apply in the circumstances outlined above?

I am seeing a solicitor but need some help in knowing the things to say.

-- Sally (cstv@supanet.com), July 02, 2000


There are several new cases to this-were a wife signs for a husband in a bank for his business Three Questions you should ask yourself were you involved in the running of the Business Were you advised seperately by a Lawyer when you signed the Charge Form or was it just on the Bank premises Were you written too at home and advised of the Loan or were was the Loan details sent to your Husbands Business Premises and you never had sight of the letter?

These are the main points you should be looking at

The rest is to find a Solictor who specilizes in this sort of case

Good Luck

Charles Twford

-- charles twford (charles.twford@lineone.net), July 02, 2000.

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