The loan that time forgot

C

cremeegg

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I have an unsecured personal loan from one of the main banks.

They loaned me a large amount some years ago to buy an investment product promoted by the bank.

The investment matured and the proceeds were used to pay down the loan, leaving a balance of approx. €9k.

That was a year ago. I received a telephone call from the bank 2 months after that asking how I proposed to repay the outstanding amount. I said that things were difficult at that time and I would see what I could do.

3 months after that I emailed the person who had called me asking for an up to date statement. She replied saying that she was no longer dealing with my account but would pass on my query.

Since then nothing. What should I do, what is likely to happen.

Two background points.

The interest rate on the loan is low as the original loan was well secured.

There was a report in the press last year where a well known businessman sued the same bank over bad advice on a similar investment product. When I raised this possibility with my solicitor he said you have a poor case and you don't have the money to sue the bank for entertainment.

If I just forget about it will it go away?
 
When I raised this possibility with my solicitor he said you have a poor case and you don't have the money to sue the bank for entertainment.
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I think you should provide the name and contact details of this solicitor. I like him.

Brendan
 
I know someone with no money suing a bank for entertainment, High Court no less, and they're doing it alone. That's because the only people who can afford court are those that are broke or wealthy.
 
There was a report in the press last year where a well known businessman sued the same bank over bad advice on a similar investment product.
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I presume he didn't succeed in his case.


It's hard to know what will happen here. It's only 7 months since you had any contact. I suspect you will get an annual statement.

The banks are busy with other stuff at the moment, but when they sort that out, they will probably get around to chasing these smaller unsecured amounts.
 
Could have been one of these (sure-fire) investments ? that was clearly meant to clear the full loan.
Bank may be reticent to chase (shortfall) .
If investment was sold as (sure fire) then you can put that case forward.
If not sold as (sure fire) negotiate repayment as best you can ie you owe it.

Very hard to sue on bad advice reason. Think about it they were not exactly competent themselves , so defence of stupidity would save them !
 
Thanks everyone for your comments.

Yes Bronte, the loan is still incurring interest, but not much. The net cost, after the opportunity cost of using savings, is probably about 2%, €180 per annum. So I can afford to wait and see.

Brendan, my solicitor is very sensible, I tend to be a bit reckless and he has on a number of occasions wisely told me to cool down. If anyone wants contact details I would be happy to provide them.

I just googled the case of the person who sued in similar circumstances. The Court Service website has this case

MURTAGH -V- MERRILL LYNCH INTERNATIONAL BANK LTD 2009/5273 P

which I believe concerns a similar product to the one I bought. I don't understand the details that are posted. Maybe they resolved the case confidentially. I would be glad if someone with legal experience, could tell me what has happened here.

I did not buy the product directly from Merrill Lynch, I brought it from a main bank, who also loaned me the money to buy the product.

No sign of an annual statement since December.

While I cannot afford to go to court for fun, I can afford to sit back and see what happens with this. I will let you know.
 
Oh, they won't forget.
I had a client who didn't hear from a bank for 7 years. Next thing she was contacted to repay the debt in full and it has since gone legal.
It was a personal loan as well.
Brenda is right. Banks have larger problems, but they will get to you at some stage.
Sorry to dampen your hopes
 
cremeegg said:
the loan is still incurring interest,

No sign of an annual statement since December.
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How do you know the loan is still incurring interest, in any case it's very much alive and not forgotton about. Probably the bank have bigger fish to fry and they will get to you eventually.

Do you always get annual statements? I'm still waiting for a couple of them for my properties. Should be coming any day now.

I'm finding it a bit vague the details on the investment. How does it work, they call you up and say we have this great product, and we'll loan you the money to buy it, can you tell us how it came about this 'investment'. It would be interesting to know why you thought it was a great product, the banks sales tactics etc
 
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