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Loan Repayment Dispute Resolution
Summary
In England, if a loan installment date falls on a weekend, lenders often allow payment on the next working day. Review your loan agreement and any communications for implied terms. Documenting the lenders past behavior can support your case. For business-to-business loans, consider consulting a commercial contract lawyer. The process for obtaining a court judgment can take a minimum of 6 months, especially if uncontested. Delaying tactics are not advisable, but legitimate defenses and negotiations can extend timelines.Full Conversation
I have a loan agreement with a lender. In August my loan instalment date fell on the weekend. The lender wrote to me to advise that I should pay the following working day. The next installment was due last Saturday. I paid it on Monday ie the next working day. The lender has a history of paying its own loans on the next working day (if that loan due dates falls on the weekend). The lender is now claiming that i have breached my contract and is seeking full repayment of the loan.
Hi ****, I understand your situation. To provide accurate information, could you please tell me which state or country you are located in? This will help me give you the most relevant advice based on local laws.
England
Hi ****, thank you for providing your location. In England, the following points may be relevant to your situation:
- Review your loan agreement for specific terms regarding payment dates.
- According to the Consumer Credit Act *, lenders must act fairly and reasonably.
- Lenders often allow payment on the next working day if the due date falls on a weekend.
Have you reviewed the specific terms within your loan agreement regarding payment dates and potential breaches?
- Review your loan agreement for specific terms regarding payment dates.
- According to the Consumer Credit Act *, lenders must act fairly and reasonably.
- Lenders often allow payment on the next working day if the due date falls on a weekend.
Have you reviewed the specific terms within your loan agreement regarding payment dates and potential breaches?
Yes, the loan document itself does not specify next working day. However they have emailed me to instruct me that next working day was acceptable. They did not give any notice of the change in position for the next payment and i believe are acting in bad faith
Hi ****,
It sounds like you have a strong argument based on the lender's previous email instruction. In England, the following points may be relevant:
- The Consumer Credit Act * requires lenders to act fairly.
- Consistency in lender's communication can be a key factor.
- Documenting all communications with the lender will support your case.
Have you considered contacting the Financial Ombudsman Service for further assistance?
It sounds like you have a strong argument based on the lender's previous email instruction. In England, the following points may be relevant:
- The Consumer Credit Act * requires lenders to act fairly.
- Consistency in lender's communication can be a key factor.
- Documenting all communications with the lender will support your case.
Have you considered contacting the Financial Ombudsman Service for further assistance?
This is a loan between * companies and not covered by the FCA
Hi ****,
Thank you for the clarification. In England, for business-to-business loans, consider the following:
- Review the loan agreement and any written communication.
- Check for implied terms based on the lender’s past behavior.
- Seek legal advice for potential breach of contract claims.
Have you considered consulting a commercial contract lawyer for more specific guidance?
Thank you for the clarification. In England, for business-to-business loans, consider the following:
- Review the loan agreement and any written communication.
- Check for implied terms based on the lender’s past behavior.
- Seek legal advice for potential breach of contract claims.
Have you considered consulting a commercial contract lawyer for more specific guidance?
What do i need to do to evidence implied terms? Ie what is the legal test
Hi ****,
To evidence implied terms in England, the following legal tests are generally considered:
- **Business Efficacy Test**: The term must be necessary to make the contract work.
- **Officious Bystander Test**: The term is so obvious that both parties would agree to it if asked.
Documenting the lender's consistent past behavior and communications will help support your claim.
To evidence implied terms in England, the following legal tests are generally considered:
- **Business Efficacy Test**: The term must be necessary to make the contract work.
- **Officious Bystander Test**: The term is so obvious that both parties would agree to it if asked.
Documenting the lender's consistent past behavior and communications will help support your claim.
In contract law is there an expectation that both parties act in good faith
Hi ****,
In England, while there's no standalone duty of good faith in contract law, courts may imply a duty of good faith in certain circumstances, particularly in long-term commercial contracts or where the relationship requires mutual trust. Documenting the lender's consistent past behavior and communications will support your case.
In England, while there's no standalone duty of good faith in contract law, courts may imply a duty of good faith in certain circumstances, particularly in long-term commercial contracts or where the relationship requires mutual trust. Documenting the lender's consistent past behavior and communications will support your case.
When applyk
Hi ****,
It seems like your message got cut off. Could you please clarify what specific information you're seeking regarding "when applyk"? This will help me provide you with more precise legal information. Thank you!
It seems like your message got cut off. Could you please clarify what specific information you're seeking regarding "when applyk"? This will help me provide you with more precise legal information. Thank you!
When applying for a court judgement to force repayment of the debt can you please explain the steps and typical time lines for each step
Hi ****,
Here are the steps and typical timelines for applying for a court judgment in England:
*. **Pre-Action Protocol**:
- **Timeline**: Typically 14 days.
- **Action**: Send a letter before action to the debtor outlining the claim.
*. **Filing a Claim**:
- **Timeline**: Immediate.
- **Action**: Submit the claim form to the court.
*. **Service of Claim**:
- **Timeline**: 4 months.
- **Action**: Serve the claim form on the debtor.
*. **Debtor's Response**:
- **Timeline**: 14 days.
- **Action**: Debtor must acknowledge or defend the claim.
*. **Judgment**:
- **Timeline**: If uncontested, a few weeks; if contested, several months.
- **Action**: Court issues a judgment.
Would you like more details on any specific step?
Here are the steps and typical timelines for applying for a court judgment in England:
*. **Pre-Action Protocol**:
- **Timeline**: Typically 14 days.
- **Action**: Send a letter before action to the debtor outlining the claim.
*. **Filing a Claim**:
- **Timeline**: Immediate.
- **Action**: Submit the claim form to the court.
*. **Service of Claim**:
- **Timeline**: 4 months.
- **Action**: Serve the claim form on the debtor.
*. **Debtor's Response**:
- **Timeline**: 14 days.
- **Action**: Debtor must acknowledge or defend the claim.
*. **Judgment**:
- **Timeline**: If uncontested, a few weeks; if contested, several months.
- **Action**: Court issues a judgment.
Would you like more details on any specific step?
Does this apply to large loans eg £3million?
Hi ****,
Yes, the steps provided apply to large loans, including loans of £* million. The process for obtaining a court judgment in England remains the same regardless of the loan amount.
Would you like more details on any specific step?
Yes, the steps provided apply to large loans, including loans of £* million. The process for obtaining a court judgment in England remains the same regardless of the loan amount.
Would you like more details on any specific step?
So from beginning to end can this process take 6 months as a minimum?
Hi ****,
Yes, the entire process can potentially take 6 months as a minimum, especially if the claim is uncontested. However, if the claim is contested, it could take longer.
Would you like more information on any particular step or aspect of the process?
Yes, the entire process can potentially take 6 months as a minimum, especially if the claim is uncontested. However, if the claim is contested, it could take longer.
Would you like more information on any particular step or aspect of the process?
I would kike to deploy delaying tactics to drag the process out
Hi ****,
While I cannot advise on tactics to intentionally delay legal proceedings, here are some general steps that might prolong the process:
- **Filing Defenses and Counterclaims**: Raise any legitimate defenses or counterclaims.
- **Requesting Extensions**: Apply for extensions on deadlines when possible.
- **Engaging in Negotiations**: Use negotiation periods to extend timelines.
Would you like more information on any of these steps?
While I cannot advise on tactics to intentionally delay legal proceedings, here are some general steps that might prolong the process:
- **Filing Defenses and Counterclaims**: Raise any legitimate defenses or counterclaims.
- **Requesting Extensions**: Apply for extensions on deadlines when possible.
- **Engaging in Negotiations**: Use negotiation periods to extend timelines.
Would you like more information on any of these steps?
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