A couple have had almost £1/2 million in debt written off after a 20-year hard-fought battle.
Geoffery and Rosemary Cranna, from Havant, battled for 20 years to challenge a debt they should never have had to pay back in the first place, as it was an unfair loan.
Mr and Mrs Cranna had taken out a loan in 1990 with Shearn Management. After a while when their circumstances changed, they got into difficulty with the repayments and defaulted. The loan ended up being sold on to Jesswin Securities who chased the couple for the repayment of the debt.
Jesswin Securities took action to regain their money by trying to force their home to be sold, but the Judge granted a suspended possession order instead, allowing them to remain in their property with the help of a previous solicitor.
But when they still could not keep up with their repayments, the lender sought to invoke the order and take their home.
After taking further legal advice, this time from Liam Waine, a Partner and specialist in Consumer law at Stephensons Solicitors LLP, it was clear that the original loan they had taken out was in fact invalid.
Liam discovered that there were errors in the way it had been drafted in that it failed to contain some of the prescribed terms as required under the Consumer Credit Act 1974 (and associated regulations). This meant they had been paying off a debt which was unenforceable and the suspended possession order should never have been granted on their home.
Liam said: “Unfortunately, over the years there have been many solicitors firms and claims management companies who purport to be specialist consumer credit lawyers. Mr Cranna sought legal advice from a solicitor who unfortunately overlooked a serious flaw in the original credit agreement, which meant that it was irredeemably unenforceable. This has caused unnecessary loss and years of stress to the Crannas.”
After Liam’s intervention, a debt of £420,000 has now been written off and the charge has been removed from their property.
The Cranna’s local MP, David Willetts MP, has also promised to raise this issue in Parliament.
Liam adds: “By raising awareness of this case we hope that it will help other people who have been faced by the extraordinary saga of problems which Mr and Mrs Cranna have experienced.
“It remains to be seen how many other people who are subject to suspended mortgage possession orders, have reached an agreement with their lender. Some agreements will see debtors indebted to lenders for the remainder of their lives. It is this category of people who, in my view, should seek specialist advice for an opinion on their situation, regardless of seeking advice before.”