Interest from loan 5 years ago

simonandlozzie

Help - we are getting worn down!! The short version - 5 years ago we were going to remortgage to get £25k but were adivsed by our bank account advisor (as we are platinum card customers) that we could get £25k interest free, if we paid the loan back within 3 months we wouldn't have to pay interest. We did this and then remortgaged and within 3 months went to the bank and paid off the £25k loan. A year later we received a letter telling us we still have approx £1100 interest to pay on this loan. Various letters went back and forth from us to the bank over the next few months. They offered a settlement of whereby they would take off £200, leaving us approx £900 to pay - on a loan we were told would be interest free if we paid back within a specificed time period. We declined their offer and received various letters stating they would take the matter under advisement and would contact us shortly (this was approx 4 years ago). Now 4 years later, we have noticed money going out of our current account, under the heading 'personal loan' and as we didn't have any 'personal loans' under our bank, we queried this only to be told, it was the interest outstanding from the loan we took out 5 years previously (we were told at the branch they would close the loan account down when we paid the £25k back five years ago). We have spoken to various depts in Birmingham, Bristol, Bangalore and had several meetings with our local branch manager who himself got transferred from pillar to post and it took him all afternoon just to get a ref number from the loans collections dept (what chance have we got?) We spent 1 1/4 hours on the telephone only to be told we need to pay off the outstanding balance before a complaint can be raised!
How can the bank just decide to take money from our bank account 5 years later without telling us when we thought this had all been closed as we hadn't received any correspondence with regards to this at all in the last 5 years.
Our bank manager said he can't help us as he doesn't have the authority to do anything in this case. We are being pushed from pillar to post and they are just taking money out of our bank account as and when they want to and there is nothing we can do to stop them apart from shutting our bank account down.
Any help in this matter would be greatly appreciated.
Thank you from a very frustrated and angry bank customer.

jonesMUFCforever

I know of no bank giviing interest free loans - buy now pay later yes - totally free no.

shop-to-drop

Have you read throught the paperwork from the original loan? If not I would do so and seek legal advice. Sorry you are having these problems hope you get them sorted.