How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: UK Law
Satisfied Customers: 10169
Experience:  Barrister 17 years experience
53108719
Type Your UK Law Question Here...
Buachaill is online now
A new question is answered every 9 seconds

At what point does the bank's duty to account to its

Customer Question

at what point does the bank's duty to account to its customer start when the bank repossesses any security pledges for a loan facility?
Submitted: 1 year ago.
Category: UK Law
Expert:  Buachaill replied 1 year ago.

1. A bank has a continuing and ongoing duty to account to the borrower whose property has been seized as security for sale to pay off any loan monies advanced. The correct course of action if you have had your security given to the bank is to formally write to the bank and seek details of the method of realisation of the security. If the security has been sold, then you should formally write and seek details of how much money has been realised, what expenses have been incurred and in what amount. There is extensive caselaw on this point. Essentially, a bank owes a good faith duty to its borrower to realise the best price for any security sold. An example of where a bank has been held in default of this good faith duty is where the bank sold agricultural equipment seized from a borrower as security in winter when demand was low rather in spring when demand would be higher. If you want to provide more details I will be happy to help further.

Related UK Law Questions