Loan Arrears Help

craig025

Hi there

Can anybody give me some advice regarding loan arrears please?

I found myself unemployed in January of this year and contacted my bank who agreed to 'park' my loan for a period of 3 months during which no payments would be taken. The advisor stated that once the 3 month period was up my loan would be restructured with payments to fit my new income. Great I thought. I asked what would happen with the payments I would miss during the 3 months and was told I would not have to pay them back as the loan would be restructured based on the ammount owed at the time of parking. I was so shocked that a previously rigid bank was being so flexible I even asked them to go through it again and even called into my local branch who reiterated the fact for good measure. Today I checked my account to find that the bank had taken all of the arrears back which is nearly £600. The three month parking agreement has not even expire neither did the bank even contact me to say this was going to happen. I called the bank this evening who tried to get me to enter into a new agreement whereby they would refund me half of this back providing I paid it back in installments as well as the normal monthly payments, no mention of the restructure. I declined their offer and they have said they will investigate.

Can the bank just do this without even informing me? None of the letters I have received mention them taking back the arrears in one go. I'm confused

Any help would be much appreciated

Robert_Sterling_3

I think the problem has arisen because of the use of the phrase "park". I do not know what, if anything, is the legal interpretation of the word "park" in this context.