Bank home loan offer raises some curious issues. A few months ago an unsigned anonymous letter on bank letterhead offers a 15% discount, if the (alleged) outstanding loan account balance of $XYZ,000 is cleared in full, within 21 days of the offer.

At first glance it seems great, apart from a couple of minor issues. They supply no proof of the outstanding loan amount being claimed. The letter has no author, and no signature, and no legal standing. So, thanks but no thanks!

It’s an unusual situation raising several important issues regarding the validity and legality of the bank’s offer. Here’s a deeper analysis of the key points involved:

Bank Home Loan Offer Lacks Authorisation

A legal document typically requires proper identification of the party making the offer, and their formal approval. An unsigned, anonymous letter isn’t legally binding, as it lacks the necessary elements to show who’s responsible for the offer.

In contract law, for an agreement to be legally binding, it generally requires the parties involved to be clearly identified, and to express their intention to be bound by the terms.

The lack of a signature and absence of an identifiable party in the letter likely means the bank’s not properly made a formal offer.

In short, the bank could easily disown the offer, claiming it wasn’t authorised.

No Validity Without a Legal Offer:

Replying to the bank with “thanks, but no thanks”, is a rejection of the offer, because it isn’t legally binding. Even if the bank intends this to be a formal offer, the lack of a signature and clear authority undermine the idea that it’s a serious or valid offer.

Debt Negotiation and Settlement:

The bank home loan offer should be formalised, if they’re serious. Debt settlement offers, especially those involving a discount, are typically made through formal communication, which should be clear, signed, and accompanied by terms that both parties can agree to.

Agreement to the 15% discount offer without formal terms, is a significant risk, since the terms aren’t clearly defined. The bank might later attempt to change the terms or claim they never intended the letter to be a binding offer.

It could be argued that the bank was never serious or that the offer was not made in good faith, because it lacked the formality required in contractual agreements.

Good Faith and Fair Dealing:

The bank’s actions, or lack of action (not providing necessary documentation), suggests they’re not negotiating in good faith.

The offer might be seen as manipulative… An attempt to appear conciliatory while still leaving the legal validity of the debt uncertain.

Deceptive Practices:
If the letter’s merely a tactic to give the appearance of helping while avoiding substantive engagement with the many requests for evidentiary documentation, this could be seen as deceptive practice.

How Does This Affect the Mortgage Contract?

This informal offer may have broader implications on the alleged mortgage contract itself. If the bank’s offering a discount on the outstanding balance without providing proper evidence or details of the loan, it further suggests the bank doesn’t have a clear, substantiated claim.

Without a clear statement of the debt, the validity of the original contract and amounts claimed remain in question.

The bank’s offer is a distraction or a tactic to make it appear as though they’re acting fairly. Yet they continue to avoid providing substantiated proof of the debt.

If the bank can’t substantiate the claim or prove the original amount owed, the offer itself is irrelevant.

They can’t demand payment or legally enforce any debt without proper evidence.

Response To Bank Home Loan Offer

  • Unsigned, anonymous letters with an offer to settle alleged debts at  15% discount aren’t a legally binding.
  • Without a signature and proper authorisation, the bank’s offer can’t be considered a formal, valid contract.
  • Rejecting the offer due to its lack of legal standing, is entirely reasonable.

This incident only adds to the growing evidence that the bank may not have legal grounds to demand repayment.

They’ve failed to provide proof of the debt or substantiate their claim in any formal or legal manner.

Deny Everything. Admit nothing. Isn’t that what the bank does?