What does this mean? Loan problem

monday_blues

Hi there,

I need a bit of advice please. First of all, things are tight, and I have been on this site for over a year now. Managed to get debt down from 35k to 30k but still struggling. however, monthly payments are still being maintained.

Now here is the problem....

I have a bank loan which, due to the creditor and my bank being unable to set up a new direct debit (i previously cancelled dd as didnt want payment to bounce and get charges), I have been paying manually on payment date by phoning creditor with debit card details.

The loan is a biggy, it is £320 per month, got till 2013 or 2014 to run.

I got a letter from them about 10 days ago saying something to this effect

"thanks for redemption of your account, you have overpaid by £2.63 and we have deposited this overpayment into your current account". Well I can only say I was excited and hopeful if i'm honest. it sounded to me like they thought the loan had been paid off.

And although the letter didnt have figures stated other than the overpayment of £2.63, it was quite a open and misleading letter. Dont know what to make of it?

So I phoned them the same day and didnt let on, just asked them for the balance on my account....and was told £15,000. I knew I didnt have that much luck.

However, my payment was due the next day, but I still couldnt get the letter out of my head, so I decided to not phone up and pay the amount, and just see what happened, i.e. would they send me a reminder letter, if so, i would pay up of course. But its now about 10-14 days later and i've heard nothing.

In the back of my mind, i am thinking, had they just not got round to closing the account when i phoned for the balance, or what.....

Although I have never been in arrears with the loan, on a few occasions I have been a few days late, due to when I get paid etc., at end of month, but have always received a reminder letter in the post! But not this time. What do you think?

Anyone else had experience like this.

p.s. I must add, that I have the money in my current account, just in case!

monday_blues

does anyone have any opinion on this, before it disappears on the forum. your help and thoughts most appreciated.
monday blues,

angelicmary85

Hi Monday Blues!

I'm not in any position to offer any advice but I wanted to leave a post to keep your thread in public view incase there is someone about that could help!

angelicmary85

or maybe nip over to the loan section and see if anyone over there can help?

Happytogetdebtfree

if you know you havent paid it in full and they say you have i have an odd feeling it will eventually come back and bit you in the !!! after all nothing is that nice especially companys you owe money to... a prime example ..... we had a gym membership cancelled it before term was up and didnt hear a thing we thought wow we dont have to pay after all low and behold a month a go a letter fell through the door asking for the cash.... so although we all like to save some cash and it makes the difference i feel honesty is the best policy dont wait for them to drop a letter on you after all ... they could add late fees and what not and how can you openly argue you thought the loan had terminated if you know it ends in 2014 ? that letter may have been sent to the wrong home has the overpayment been returned to the current account ? if in doubt phone and ask.... ? good luck xx

Tixy

Hi

Seems unlikely that they have closed your account with some mysterious funds especially as they have told you the balance since that letter. I know this is obvious but did the details /loan account number on the letter agree to yours? Did the £2.63 appear in your current account if they don't have your bank details.

I wonder if they had allocated someone elses settlement to your loan in error but then realised.

Be careful not to run up fines / charges for not paying or worse by not paying they don't decide to offload it to a DCA (not that likely but if you have been late before). How long since this happened? Maybe 1 week after the call you made call again to ask the balance, if its still £15k you could ask if there is any record of a settlement or extra payments on the account as you've had a letter to confirm it. If not then I think you'd be best making your payment ASAP.

(Just my thoughts by the way - no expertise in this area)

monday_blues

Thanks to all who responded. I do agree with your comments, I am sure it will come back to me, its just that with money being so tight, although it is not right, it would have been a lifeline....instead of winning the lottery!

However, I have kept the money in my account and will pay it, i'm sure a letter will come from them soon.

In response to your questions. I havent checked the current account to see if the £2.63 was paid in, its an account with that bank which I dont use, so had no cause to look at the balance. It has been around 10-14 days now. No word from them at all, just a little unusual because mail comes through from the same bank for other accounts that we have including mortgage, and in the past have received letters about this loan.

Thanks again for your help though,

tallyhoh

Try paying your normal payment, you have nothing to lose. If they have closed account they will refund it & if they have not closed it you will not running the risk of charges.
Perhaps they meant you had overpaid the normal monthly amount as interest rates have reduced?