Problems with a loan because member of staff made a mistake.

morocha

Hi, i would like some advice in this matter if at all possible.

My husband took out a £5000 loan 3 years ago with A&L, after the 3 yrs he thought he had paid it all off so he cancelled his direct debit then went into his local branch and was told that there was one payment left so he paid it in cash.

But the member of staff who delt with him made a mistake with the account number and paid it into the wrong account since then he has lots of threatening letter from collection agencies and A&L itself requesting the final payment. He has gone into his local branch three times to sort the problem out with the girl who made the mistake who has been very nice and tried to sort the problem out but nothing is being done.

Since then he has needed a new loan for a car but turned down many times because of the default on this account.

Does any one know if he is entitled to any compensation in this matter from A&L ? And the steps to take ? He has sent a letter today asking for compensation, the account to be settled and the default removed.

I woul appreciate any help anyone can give.

Malky

In hindsight your husband should have gone into the branch first then cancelled his direct debit if the loan was paid in full. The staff member should have been more careful as to where the payment was being sent. A bit of a double edged sword but A&L may, unfortunately, go against your hubby for cancelling the DD when he was not entirely sure the loan had been paid off.
I assume this isn't very recent as debt collection agencies wouldn't be on to your hubby that quick if it was only a month or two ago.

morocha

Hi, thanks for replying...

My husband cancelled the DD because he received a letter showing it was the last payment, then received a letter asking why he cancelled the DD, he went to the branch and was told that he should made the last payment in June, which he did right there, he gave the girl the money and got a receipt. She said the loan has been paid off now, obviously then when we received more letter asking for the final payment, we realizezd she entered the wrong account number, and still they are not able to sort the problem out.. despite numeros phone calls, and the girl apologizing, they say they will put it right, but then we get more letters asking for money.

bouncydog1

You need to do a step plan outlining everything that has happened in date order and send it to the complaints dept.

I suggest you also give them a time limit as to when you expect a reply. Don't deal with the girl that made the mistake because no matter how helpful she is, she feels guilty but you need to progress this up the line.

As for the borrowings on the new car, best place to start will be A & L as it is going to take some time to sort out the information on the credit history. All of the applications will be listed as searches and I don't think these can be removed as they have happened.

morocha

Thank for your help.