Bank Demanding Full Immediate Repayment
Options
Hello,
I got rather a large shock this morning when I opened my post. The Co-operative Bank have sent me a letter demanding full repayment of my loan by 9th March or will take me to court, completely out of the blue.
The background: I took out a £2,000 loan in 2010. Several years ago I became genuinely to
ill to work (I've just been reassessed for ESA - Employment and Support Allowance in the past month and didn't even require to have a medical assessment - they just awarded it). I approached the Citizens Advice Bureau and explained the situation to the bank (who were very good) and we arranged a repayment plan.
This has been renewed and renegotiated the last three years, the last time being in July, with a letter in December assuring me they were happy to continue accepting repayments.
In December, I also requested a copy of my full loan agreement paperwork because I have misplaced my whilst moving (and wanted to see if I was eligible to make a PIP claim).
Can the just renege the agreement without informing me? I've made every single agreed partial repayment required of me. I realise every one of these is a defaulted payment, but this seems incredibly harsh.
I got rather a large shock this morning when I opened my post. The Co-operative Bank have sent me a letter demanding full repayment of my loan by 9th March or will take me to court, completely out of the blue.
The background: I took out a £2,000 loan in 2010. Several years ago I became genuinely to
ill to work (I've just been reassessed for ESA - Employment and Support Allowance in the past month and didn't even require to have a medical assessment - they just awarded it). I approached the Citizens Advice Bureau and explained the situation to the bank (who were very good) and we arranged a repayment plan.
This has been renewed and renegotiated the last three years, the last time being in July, with a letter in December assuring me they were happy to continue accepting repayments.
In December, I also requested a copy of my full loan agreement paperwork because I have misplaced my whilst moving (and wanted to see if I was eligible to make a PIP claim).
Can the just renege the agreement without informing me? I've made every single agreed partial repayment required of me. I realise every one of these is a defaulted payment, but this seems incredibly harsh.
0
Comments
-
The full amount I'm required to pay with two weeks is £1,181.70 which will basically leave me with nothing.0
-
They haven't reneged on the agreement. The agreement will state that the full amount becomes repayable.
What they have done to date is allow smaller payments to be made, rather than invoke that clause.
However, if you are unable to pay in full, they will need to continue to accept your smaller payments, even if they get a CCJ. All you can do is pay what you can.0 -
What did they say when you contacted them about the letter ?0
-
Pretty much every loan and mortgage has a clause in it stating the lender can end the agreement at any time and the full amount would be repayable. I would imagine that after several years after taking out a £2000 loan you still owe over half of it that they've decided that you're not making a purposeful effort to repay it so have decided to draw a line under it. Assuming you repaid £1000 over 7 years that's less than £3/week so I can understand why they've had enough.0
-
zx81 - I was talking about the repayment plan not the actual loan agreement.
Molerat - I was told in December over the phone when I contacted them that they were happy to continue accepting repayments. I will contact the bank tomorrow, I'm too emotional today.0 -
Tarambor - yes I'm aware of that clause, it just seems so unethical without any prior warning or intention to negotiate. It's really hurtful to hear your comment of "I can see why they've had enough".0
-
If you can't afford it, you can't afford it. It's just an unsecured personal loan so it's not a priority bill. If you want help in dealing with Co-op Bank contact one of the debt charities for support and advice.
CAP UK
National Debline
Step Change.0 -
I'm not sure why this would come as a shock. You fail to make contractual repayments (for understandable reasons, but that's not the bank's problem), and then you play some shenanigans trying to get a large print copy of an irrelevant page.
http://forums.moneysavingexpert.com/showthread.php?t=5753613#topofpage
I hope you get this sorted, but you need to understand that the lender is not the one at fault.0 -
Thanks Pixie, for offering helpful, practical and non-condemnatory advice. I've called Stepchange and have arranged an appointment with a debt charity/CAB next week.
Boris, you're not related to Boris Johnson are you? Just wondering. I'm perfectly within my rights to request my own loan agreement from the bank and it's come as a shock because only last month they claimed to be happy with the arrangements put in place.
Please don't censure me for talking about a problem on a money advice forum and for being unwell. The Co-op haven't exactly been an ethical bank since I've been their customer (I recently won a complaint) and should give more clarity to their customers, not just drop unaffordable bombshells.0 -
Pretty much every loan and mortgage has a clause in it stating the lender can end the agreement at any time and the full amount would be repayable. .
Are you sure this is true? Surely the lender can only demand immediate repayment if the borrower fails to make their contractual payments?0
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards