Tracker offer exired. Refused to extend it. FSO rejected my complaint.

macfran

Registered User
Messages
8
In 2009 I lodged an unsuccessful complaint to the FSO relating to a tracker loan I was offered but, prior to drawdown, was subsequently withdrawn by the bank, claiming

  1. They were no longer doing tracker loans.

  2. The loan offer had lapsed

I based my case on “loan offer had Lapsed” ( planning permission for extension took 9 months)


Hereunder are the relevant findings of the Ombudsman.


The net issue is; can a general term relating to expiration of the loan offer be defeated by clause 13?

Clause 13 of the terms and conditions provides that “in the event of any conflict or inconsistency, the Specific Loan Offer Conditions shall apply.”

In my opinion, there is no specific loan condition extending the length of the Loan Offer.

The specific condition concerning planning permission does not conflict with nor is it inconsistent with the general term/condition regarding expiration of the loan offer.

Consequently, the complaint before me cannot be upheld.


The banks Specific Loan Offer Condition states;


Notification of Grant of full planning permission for proposed extension to the proposed security to be obtained by the borrow and placed with the title documents by the Borrowers Solicitor on or before the date of release of the loan funds.


Can anybody explain to me how the FSO came to that conclusion as on the banks Specific Conditions it states that no funds will be released until planning is in place?
 

Brendan Burgess

Founder
Messages
44,647
The Ombudsman's decisions seems perfectly reasonable to me.

You had a loan offer valid for 6 months. It lapsed. End of story.

The fact that it took you 9 months to get planning permission is not the lender's fault.

The wording did not say "This offer is open for 6 months or until planning permission is received, whichever is the longer".

Brendan
 

Monbretia

Registered User
Messages
2,049
The offer lapsed before drawdown, happened all the time with fixed rate loans too, if you had a loan offer for say 5yr fixed @ 5% and before drawdown that rate and term was withdrawn then your drawdown would have to be at new options available and not what you were originally offered. Even with an in date loan offer on the fixed ones the rate applicable was the rate available on drawdown date, the offer rate was not guaranteed so it doesn't seem a bit unusual for bank not to have to offer tracker again on a lapsed offer.
 

todo

Registered User
Messages
260
@macfran did you sign and return the offer letter showing your acceptance of there offer? If so when was this?

Or was it that you waited to have the planning permission granted before signing and returning the offer letter?
 

todo

Registered User
Messages
260
I have not seen the full terms and conditions, but do they define that the contract is only valid after the drawn down or is the contract valid after the offer is accepted.

What defines an offer as lapsed, not signed or not drawn down upon?
 

Monbretia

Registered User
Messages
2,049
Out of date I would imagine, only valid for set number of months. Even if signed and accepted within that time there is more than likely a coverall clause in the conditions that allows for rate change before drawdown, there always was with fixed rate ones.
 

todo

Registered User
Messages
260
Out of date I would imagine, only valid for set number of months. Even if signed and accepted within that time there is more than likely a coverall clause in the conditions that allows for rate change before drawdown, there always was with fixed rate ones.

We'd need to see those clauses in order to determine if the Ombudsman was correct in his findings here. We all know the ombudsman has been wrong on many occasions before.
 

Brendan Burgess

Founder
Messages
44,647
There is a standard clause in Letters of Offer that they expire after a fixed rate period.

I really don't think you need to complicate this any further.

Of course the FSO has made poor decisions. But he gets asked to rule on many clear cut cases, and tends to get them right.

This is clear cut and he got it right.

Brendan
 

macfran

Registered User
Messages
8
.

To clarify a few points;


1)My “memory” is that upon receipt of the Tracker letter offer (May 2008) it was signed and returned by immediate post.


2)Upon checking emails, I note I asked the bank “for clarification of where does it say on the loan offer that you have to refer to General Terms and conditions”

Bank’s response; It does not state on the loan offer to refer to the General Terms and Conditions, however a copy is sent out to the customer with the loan offer.


3)In the General Terms and Conditions it states “In the event of any conflict or inconsistency, the Specific Loan Offer Conditions shall apply.”

The Specific Conditions states that Planning must be in place prior to drawdown.


Yes, planning took 9 months, but surely the Specific Conditions overrule the General Conditions?
 

todo

Registered User
Messages
260
Clearly the bank by there response have omitted the general terms and conditions from the offer letter, by not having a reference to the additional document.

"Bank’s response; It does not state on the loan offer to refer to the General Terms and Conditions, however a copy is sent out to the customer with the loan offer."

I know my offer letter has several pages of terms and conditions, its all one document, numbered as such.

What does the offer letter contain, is there a condition that says you must drawn down the funds by a certain date, I can't see how they have any grounds to include the general terms and conditions since the offer you signed makes no reference to them.

I'm not trying to complicate things, but they can't have it every way.



 

Sarenco

Registered User
Messages
6,852
In the event of any conflict or inconsistency, the Specific Loan Offer Conditions shall apply.”

But surely the key point is that FSO found that there was no conflict or inconsistency between the General Conditions and the Special Loan Offer Conditions.

Looks pretty clear cut to me on the face of it.
 

Brendan Burgess

Founder
Messages
44,647
3)In the General Terms and Conditions it states “In the event of any conflict or inconsistency, the Specific Loan Offer Conditions shall apply.”

The Specific Conditions states that Planning must be in place prior to drawdown.

There is absolutely no conflict.

They are two completely separate terms.

Your loan offer expires after 6 months.
Planning permission must be in place prior to drawdown.

They are not connected in any way, except in your head. There is no logical connection.

Planning permission was not in place within the 6 months, so the offer expired.

I am almost surprised that the FSO spent any time on this. A quick read of your complaint should have resulted in a reply telling you that you had no basis for the complaint.

Brendan
 
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