Bank Changing Loan Terms

**FRASER** · 08-06-2005, 01:53 AM

I APPLIED FOR A 38,000 LOAN AS A SEASONAL FISHERMAN WITH PRINCIPLE AND INTEREST PAYABLE AS ONE LUMP SUM PAYMENT AT THE END OF THE FALL SEASON. THIS WOULD BE PAID ANNUALLY. THE BANK NOTIFIED ME BY MAIL 10 MONTHS LATER THAT THE INTEREST WAS TO BE PAID MONTHLY. THE CONTRACT STATED INSTALMENT PAYMENTS WITH NO MONTHLY DATES. I REFUSED TO PAY THIS INTEREST SO THEY REPOSESSED MY FISHING BOAT WHICH WAS WORTH 50,000. THE BANK SAID THE TERMS & CONDITIONS STATE MONTHLY, WHICH THEY DO. THEY ALSO STATE THAT THE REPAYMENT TERMS ALSO HAVE TO BE INDICATED ON THE LOAN CONTRACT, WHICH DO NOT IMPLY MONTHLY REPAYMENT. WHEN BORROWING MONEY THE BANKS USE DEBT- RATIO TO DETERMINE CRITERIA TO LEND THE SAID PARTY FUNDS. I WOULD NOT BE ABLE TO PAY THIS INTEREST PAYMENT BASED ON MY REVENUE STREAM AS A SEASONAL WORKER. DID THE BANK GO TOO FAR WITH THIS AND DO I HAVE ANY LEGAL RECOURSE?

**aaron** · 08-08-2005, 08:05 AM

If you can still redeem the boat, you may wish to try to secure a loan such that you can do so and minimize your damages.

It is awkward that, you say, the contract doesn't describe that you are excused from paying interest on a monthly basis. It may also be awkward that after being notified by the bank that they expected monthly payments you chose not to pay them. You would benefit from consulting a local lawyer about your situation.

**FRASER** · 08-08-2005, 10:07 PM

THE LOAN AGREEMENT STATED PRINCIPAL PLUS INTEREST DUE ONE YEAR LATER. THE INTEREST IS ADDED UP EVERY MONTH AND PAYABLE AT THE END OF THE YEAR WITH THE PRINCIPAL. THIS LOAN ARRANGEMENT IS CALLED A DEMAND INSTALMENT LOAN. I HAVE ATTACHMENTS WHICH CAN BE SENT TO INTERESTED PEOPLE IF THEY SEND ME THERE E-MAIL ADDRESS TO coldwaterfish@eastlink.ca

**aaron** · 08-08-2005, 11:58 PM

I am aware of your interpretation of the loan agreement; but it seems that the bank takes a different position. I am not sure what point you are at, in relation to the foreclosure, but as I previously indicated you may be able to minimize the harm to yourself by arranging alternative financing and redeeming the boat.

I am not sure by what process the bank foreclosed on the boat - whether or not there was a legal action. If this was a repossession without any legal action, based upon the bank's (presumably erroneous) interpretation of the contract, you should have legal remedies available. It is usually helpful to consult a local lawyer about your rights and remedies, and to obtain assistance for any court proceedings, as representing yourself in court can be tricky.

**FRASER2** · 12-15-2005, 02:49 AM

I feel compelled to bring this topic up due to some very public information regarding the man in question.

This Paul Fraser guy will not stop with his public advertising of this case. He has billboards and posters hanging pretty much everywhere within a 25 mile radius featuring his phone number, e-mail and the bank manager's phone number. He has pamphlets in most ATM booths and store counters in the city. He once stood on a very busy street corner during a bout of construction with a huge billboard advertising his case. He spraypaints his messages, crudely, on billboards and bridges all over the city. He has actually been doing this since at least Febuary 2005, long before he actually decided to consult this website for legal council. (That's not to say he probably didn't consult any other form of legal counsil before then.) Most of his messages declare that there is a "media bias" against him and they are "paid by corporate greed" and he wants "us" to help him fight this "corporate bully".

He has a car with this message painted (professionally) on all sides of the car. He will actually drive slowly on the highway on purpose and then whenever someone goes to pass him, he will speed up and keep up alongside them, forcing them to look his way and read his message. This has happened to me personally three times and a friend of mine too.

In July, he spraypainted his message over a public memorial painted by the local high school for a student who died tragically the week before. He spraypainted a new message in the same spot last week.

I do not know a single person that has any respect, anymore, for this man. I know many people who did, earlier in the year, have sympathy for his situation, myself included. But everyone I know is so sick of this guy.

Apparently, he once handed out pamphlets containing photocopies of the contract that has printed on it "The bank has the right to alter the terms and conditions of this agreement at any time and when the bank does, they will give the loaned party 30 days notice to comply or appeal these conditions." (Or something like that, I can not personally vouch for this though.) That wasn't why nobody has any respect for him though...the main reason is that his message is EVERYWHERE in the Cape Breton Regional Municipality and everyone is sick of it. He is a joke in my community.

My two cents.

Signed,
Paul Fraser's biggest fan.

**FRASER2** · 12-29-2005, 02:58 PM

I'll add another follow-up.

Two weeks ago, the local high school painted a Christmas Holiday-themed message of peace and goodwill on the same wall as that public memorial they made back in July. Sure enough, with five days to go before Christmas, I find this spray-painted on it:
ARE YOUR ASSETS SAFE?
$100,000 LOST!
I WILL NEVER GIVE UP!

ROYAL BANK LOAN
->NO MONTHLY FEE<-
WRITTEN ON CONTRACT

It's still there. I do not know a single person who has any respect for the guy anymore. Whether he's right or wrong, the community would love him to just shut up.

Signed,
Paul Fraser's biggest fan.

**FRASER2** · 02-01-2006, 08:23 PM

Okay, he was very convenient in placing several photocopies of the contract at my local ATM.

It has the line:
Subject to demand, frequency and date(s) of payments.
Which means he loses.

Someone also spraypainted over his latest grafitti:
HEY ROYAL BANK GUY
NO 1 CARES

He deserves it.

Signed,
Paul Fraser's biggest fan.