mis-sold bridging loan lending solicitors advice

Case Study: Lender Default Charge of £150k+ Completely Defeated

Summary of one of our successes in defeating aggressive bridging lender misconduct over default penalty charges and threats to appoint LPA Receivers and commence Possession proceedings.

Our client was ready, able and willing to redeem a bridging loan except that the Bridging Lender was unlawfully seeking payment of well over £150k as a purported contractually agreed default fee (the Purported Default Fee).

Was the Bridging Lender acting Lawfully?

Our view was that in fact the Bridging Lender was not contractually entitled to the Purported Default Fee under the Loan Agreement, and even if they were so entitled (which they were not) it would be deemed unlawful under the laws of England & Wales (for operating as a penalty and clog fettering our clients equitable right of redemption).

Our view after our initial fixed fee case review was that no such default fee was due whatsoever. Our advice was not to pay anything at all towards the Purported Default Fee as the contract contained unenforceable penal clauses.

Defeating the Bridging Lender’s Demands and Possession Threats

Our client instructed us on an emergency basis to seek (a) mandatory injunctive relief to permit redemption per the Agreement; (b) injunctive relief to restrain the lender from anticipatory breach of the Agreement; and (c) put the Bridging Lender on notice of an intention to commence legal proceedings to recover very substantial damages should the Lender breach the Agreement.

Our interaction with the Bridging Lender set out in detail their misconduct in attempting to prematurely impose (i) Default Rates, (ii) Default Fees, (iii) LPA Receivers, and (iv) prematurely commence Possession proceedings.

Our very robust approach against the Bridging Lender and their legal team worked and forced the Bridging Lender to back down such that our client saved the entirety of the Purported Default Fee.

Our Borrower Protection Solicitors & Barristers

Our Financial Services Litigation team of Solicitors and Barristers in London are highly experienced in mis-selling litigation and specialise in representing SMEs, high net worth individuals and companies in high value bridging finance mis-selling disputes. Our high profile and high value cases regularly appear in the national and international media. We have successfully managed and settled mis-selling court litigation against all major UK lenders.

Read more about Bridging Disputes: https://lexlaw.co.uk/mis-sold-bridging-loan-property-lending-finance-advice/

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