Need help with new loan for consolidating debt

playgirl_emz

Hiya

well i recently applied for a new loan with my bank which was aproved yay:beer:t

i applied for £1000 so that i could pay off 2 credit cards and a store card

i owe:
river island £230
vanquis £497
capital one £77

i thought that i would just receive the loan and then pay off the cards myself but during the phone application the guy told me that i would need to send the bank a copy of the most recent statement from each card and the actual cards? is this normal? i am a bit confused as i pay my bills by direct debit. will the bank still take out my direct debit for this month then pay off the remainder of each bill? or will they pay off what is left on each statement and then i pay the direct debit as well? does this not mean i am paying twice this month? if anyone has had their bank do this for them if they could please explain exactly what the bank does as i am very confused!


also jus thought id ask about this. i was in river island one day trying to buy a skirt with my card. the card was rejected but i could not understand why as i had paid my bill and i knew i had enough credit on it to buy the skirt.the guy in the shop said he did not know why the transaction was declined and that i would have to phone river island credit company when i got home. i did so and the girl said my card had been blocked because when i had first applied the store did not send them my credit agreement. even though i had used the card many times before. she said they had only noticed this and i would no longer be able to use it until they were sent the credit agreement. i went back to the store where i applied and they could not find their copy of it. i phoned the credit company back and they asked if i had my copy which of course i couldnt find anywhere! but i did not take the matter further as i just want to pay off my debt and not use the card! but what im thinking is...can river island still enforce this bill if they do not have a copy of my credit agreement??is it legal?

jonesMUFCforever

Some banks will pay the cards for you in case you spend the money ''elsewhere''.

playgirl_emz

oh yes i thought thats why they do it! do u know if they cancel the cards for you as well? is that why i have to send them off? i just dont trust the bank to do it properly have had lots of problems with them in the past re: cancelling direct debits and things. would of felt more comfortable doing it myself to be honest!

CHR15

A lot of banks refuse Consolidation loans as there has been no mechanism in place to ensure the applicant will actually pay the outstanding debts off.

If your bank now has this facility in place, it may be the very reason you were accepted for the loan in the first place.

Personally I think this is a good idea, even if there is a balls up somehwere downstream if your payment still goes out. Without it, you may not have a loan at all.

This can only be good for all the others applicants who genuinely want to clear their high apr debts off with a lower apr loan.

Thumbs up from me to whoever your bank is.

I hope you cut up your cards once the accounts are settled and never go back to rip off store cards.

(i'm not sure about sending in the Physical Card, hope someone else could clarify that, there is an opportunity for fraudulent use)

playgirl_emz

i know i dont know why i need to send the cards if im paying them off and closing the credit card accounts? they must not trust that i will actually do that lol! do u reckon i could cut the card up and then send it to the bank? i need to send the loan agreement away today so any ideas anyone?

indiedarraugh

I work for a bank and sometimes we need to see your most recent statement to confirm the debt, make sure there is no late payment fees etc and that your managing the account. It can also flag up when the figures you've given don't tally to what they system can see on your credit report. This can sometimes be because you have just made a payment etc.

Most of the time I would get one of my cashiers to make a manual payment over the counter once the loan funds have been released to your account. It's not something we have to do, but its something my branch does as a "best practice" kind of measure!

playgirl_emz

i have the statments which i have to send to my bank along with my loan agreement form.only thing is that one of the statements show a lat payment fee. when the bank sees this could they withdraw their offer of a loan? the bank needs to receive my acceptance by 7th nov. but because of the postal strike i was going to send it today you know just in case, but i mite wait until i get a new statement which is due in a couple of days to send it off as it wont show a late payment fee. what do u think? or will the bank not care if there is a late payment fee on my statement. surely they would know ive missed a couple of payments from doing my credit check?

jonesMUFCforever

indiedarraugh wrote: »

I work for a bank and sometimes we need to see your most recent statement to confirm the debt, make sure there is no late payment fees etc and that your managing the account. It can also flag up when the figures you've given don't tally to what they system can see on your credit report. This can sometimes be because you have just made a payment etc.

Most of the time I would get one of my cashiers to make a manual payment over the counter once the loan funds have been released to your account. It's not something we have to do, but its something my branch does as a "best practice" kind of measure!

I'd like to see your cashiers do a manual payment to a Head office agency account without the BGC part of the statement! :rotfl: