Recently Received Personal Loan

mab_27

Hiya,

I have recently received a loan from natwest as a consolidation loan.

The said to me over the phone (I cant see anything in my contract at all) that I am required to close my 2nd credit card I have with another lender. (The loan was paying this off). I had to say "ok" to this over the phone for it to go ahead. Also I received the documents saying its approved and I just needed to sign and return them - no mention of this term. I was only told this when I spoke to someone.

Now do I actually have to do this? As I could really do with the card to allow me to move house (deposit on new place and moving costs).

Im happy to and I can close it down - its fully paid off. But can they make me? If i didnt close it down can they somehow withdraw the loan? or is this just natwest trying there chance when offering the loan?

As obviously id rather keep the card.

Also now I have all my debt in a loan but I do have 2 credit cards empty - how would I look to a lender for a new card - then i can close my virgin card.

Many Thanks

[Deleted User]

If they have put this "condition" in writing then i see no reason not to use it,if you have to

mab_27

well at a quick look I can see nothing about having to close down the account anywhere - would it be worded in any other way?

As I said I received the offer letter and it stated none of this at all so...

is this normal for a bank to do but they cant actually enforce it? Are they just trying to make me do something they cant? or is it to help them fit "responsible" lending? and if i dont follow it it comes back on me not them...

Moving saves me 200 a mnth - which is fantasic and im sure to them it is too. But I cant do it without this or another credit card.

They did say in the call id have to send a copy of my closure letter, so they have it on file. SO what happens if they do follow up where it is and i have my deposit on there waiting to be repaid?

I just dont want to do something wrong or risk having a loan taken away and being unable to cope..

mab_27

I have just read through all I Have which is 2 pages of information and a copy of what I signed. All it outlines is amount, payment date, apr, the usual about missing payments and then costs of closing early.

Does this mean theres no way the can enforce what they said? or is there anything they could do which results in my loan being taken away?

I really want to move but dont want to do something I shouldnt or that could get me in trouble...

I would also feelin happier knowing I have a credit card with a good amount on compared to the natwest card they allowed me to keep which they lowered to 1k...

ILW

You took out a consolidation loan to clear cards etc. From your opening post it appears you may in danger of running them up again and being worse off than when you started. Its surpising what can become an "emergency purchase" when you have the credit available.

mab_27

ILW wrote: »

You took out a consolidation loan to clear cards etc. From your opening post it appears you may in danger of running them up again and being worse off than when you started. Its surpising what can become an "emergency purchase" when you have the credit available.

Hiya,

Im not in any form of money troubles, I appreciate your comment but the only reason got the consolidation loan was down to my partner being out of work for 3 mnths which meant money had to come from the card and with the interest it made sense to consolidate with a previous loan.

I simply want the credit card to allow me to move - to borrow the deposit money and allow me to spread moving costs over a few months.

The question Im asking is am i doing anything wrong using it?

Also is this normal to be asked to close it down but actually i cant be forced?

Regards

[Deleted User]

I still doubt they could enforce anything thats not in writing,and it would be unusual for them to try and force you to close anything,although this would be the sensible thing to do if possible.If I were you I would go ahead,nut as ever its your call...

mab_27

woodbine wrote: »

I still doubt they could enforce anything thats not in writing,and it would be unusual for them to try and force you to close anything,although this would be the sensible thing to do if possible.If I were you I would go ahead,nut as ever its your call...

Thats what I find hard to see.

I take it more as theyre trying to advise by trying to enforce...

I just really need full confirmation that they actually cant?

i completely agree ive got my money all straight and last thing i need to do is mess it up by spending where i shouldnt - its jus for the move I need it...

Does anyone know if this is common for this to happen and actually they cnt force it?

loopy.magic

No, unless it's part of the credit agreement you signed they can't enforce it. It's a bit barmy for them to ask since you could close the card account and then simply go out and apply for another card. I'm assuming they didn't say anything along the lines of 'you must close your 2nd credit card account and not apply for another credit card to replace it'. Based on the fact that you've been offered the loan means you will probably be able to get another card.

It's probably a half hearted attempt at being a 'responsible lender'.

As mentioned already, consider the consequences of getting into more debt.

marmitedog

You say you have no money troubles but in the same sentence admit that you had to run up a debt to cover a period of unemployment? Why not use up savings and rainy day money instead? You also state you have other credit cards, the debt limits on which have been reduced - ask yourself why they have been reduced?

In answer to your question, you gave a verbal agreement that the loan would be used to clear the card. It is unlikely that this would be enforced in law, though it is legally enforcable. Its also ethically correct too (unless this doesn't matter to you!)

mab_27

marmitedog wrote: »

You say you have no money troubles but in the same sentence admit that you had to run up a debt to cover a period of unemployment? Why not use up savings and rainy day money instead? You also state you have other credit cards, the debt limits on which have been reduced - ask yourself why they have been reduced?

In answer to your question, you gave a verbal agreement that the loan would be used to clear the card. It is unlikely that this would be enforced in law, though it is legally enforcable. Its also ethically correct too (unless this doesn't matter to you!)

Being 23 I don't have enough savings to cover such a hard time.

I have completly cleared the card as agreed. It's in a position where it can be closed now no problem.

The fact that verbally they told me to agree to close it is this legally enforceable? It is nit in my loan terms which I signed to.

As a number member commented they never once said I can't get a new card either. Which is y I feel legally they have no control to force the card to be closed. I have used the loan to fully pay it off as requested.