Co-op Bank withdraw lump sum acceptance

Me_Vs_The_Bank

Hello,

I have an unsecured personal loan with the Co-op Bank, the current amount outstanding is just over £5000. In recent years after taking out the loan I have been diagnosed with two chronic illnesses resulting in long periods where I have been too ill to work.

As my health has recently deteriorated again my father has offered to pay a lump sum of £2000 off my outstanding loan amount from his ISA. I contacted The Co-op Bank with this proposal and advised them that in their acceptance of this offer I would not need to enter into any voluntary agreements and I would still be able to meet my contractual monthly payments and it would help me immensely to pay the loan off sooner as my health shows no signs of letting up in the near future.

The Co-op Bank have replied in writing and accepted this offer and advised me to contact them by phone when the money is in my account and it will be transferred to my loan. Yesterday I rung the bank to transfer the money and I was told it wasn't something they do, it isn't normal procedure, and whoever sent the letter had no authority to authorise such an action and if they were to do this they could accept the payment but my interest would sky rocket from 7.5% to 9.5% and it would affect my credit rating.

I now have to wait until Wednesday for a phone call from the manager of the person who sent this letter who will let me know if they're prepared to do this or not. My question's are, if they have accepted my original offer in writing and signed the letter is that not a form of contract? When they accepted my offer it did not have any conditions attached such as higher interest and surely such an important letter of authorisation would/should be given the ok by someone higher up first anyway before it is sent out?

Any advice would be greatly appreciated as I would like to feel prepared when they ring back if I am going to be told a straight forward 'no!'

Thank you

hermum

I tried a to pay off a lump sum to them for my loan, hoping that I would then be able to pay lesser monthly payments, different to you I know. I was told that they would only accept a full payment or the agreed monthly payments & that there was no facility to pay off lump sums. I do hope that you have better luck than me.

jonesMUFCforever

From their own Terms and conditions ;
9. General
[FONT=Helvetica Neue LT,Helvetica Neue LT][FONT=Helvetica Neue LT,Helvetica Neue LT]a) If you wish to take up the loan you must sign and return this loan agreement to us within 21 days of receiving it.
b) We may make changes to this agreement at any time to comply with regulatory requirements.
c) We can relax the terms of this loan agreement and we may at any time strictly enforce the terms again. We will not lose any of our rights under the loan agreement by doing this. We can also accept later payments or part payments without losing our rights under this loan agreement
[/FONT][/FONT]
Part c suggest that they should be able to accept lump sums.