is it illegal for a registered Ltd wholesale company to lend company funds to a private individual for personal reasons and to charge exorbitant interest. My husband made me give a charge on part of a property I owned in 2005 to cover his financial mess. Repaying double after I believe 3 months. He has never repayed this and the director/owner of the company is now refusing to sign land registry changes in the boundary which might allow me to get planning as living accomodation thus holding me to ransom. Can the loan be challenged as he now seeks I believe over 400%. I would like to the charge annulled or the lender made to accept sensible monthly payments on the grounds that it is criminal to act as loan shark. Please advise next step. Thanks
Hi there. Thanks for your question, I will help you with this.
There are several issues that are relevant to this kind of problem. The first is whether the company that made the loanIs properly licensed to do so. If not, the loan may be unenforceable against you.
The second, is whether you have been subjected to some unfair prejudice, a form of duress, in entering into a charge in order to guarantee your husband's indebtedness. This is a common scenario, and occurs very regularly. In such a case, the court will assume that there has been unfair prejudice to you, if you have not received legal advice before entering into the charge. In such a case, where there has been no legal advice, and there has been unfair prejudice, the court will not allow the charge to be enforced against you.
Thirdly, the interest rate, but over 400%, is undoubtedly extortionate, and can be challenged on that basis. Even if the first two issues were in the lender's favour, an interest rate of 400% would, I have little doubt, be overturned by a court.
I see that you have rated “I expected more". Can you tell me what more you expected?
If you rate “I expected more" again, and I shall opt out, and see whether another expert is willing to assist.
does the company which runs wholesale warehouses have to have a specific licence to be a money lender and how can I verify this. If it does not do I complain to a solicitor,trading standards or office of fair trading. Thanks
I was in the process of answering your question, but since you continue to rate me with negative feedback, I am no longer going to assist you.
If you are prepared to leave positive feedback, then I will of course continue to answer and finalise my reply.
Thanks for your question. Please remember to rate my answer SMILEY FACE OR ABOVE so that I am credited for my time.What rate has been charged and do they hold a consumer credit licence?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).