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Defective Loan maybe?
Hi,
I took out a graduate loan in 2001 with a well known reputable high street bank. It was a loan for £15,000 to pay for a post graduate course. The interest was fixed (I think) at 7% and it was to be repaid over 10 years. The monthly repayments were circa £220 and were to be taken as a direct debit from my bank account.
I made sure that I transferred the required amount into my bank account every month so that the repayment could be made. The repayments were taken from my bank account for a couple of years and then they stopped without any notification of the same to me. The only reason that I became aware of this was because I went to draw some money out of the account and could see that the £220 repayments had stacked up in the account as they were not be taken from the account by the bank.
I wrote to the bank to inform them of the same and I telephoned them to ask them why the direct debit had been cancelled as I had not received any written notification of the same. The repayments then started again however stopped again shortly afterwards. The bank then served me with a default notice and I agreed to repay them the amount that had stacked up in my bank account.
The repayments recommenced however shortly after stopped. I didnt pay anything for a couple of years and the bank did not once contact me to ask me to rectify this. In fact whenever I phoned them, there was always a problem tracing that acount.
I now pay the repayments directly into the loan account from another bank account to avoid this happening again. The sum owed though is circa £17k given that all of the interest that had accrued over the years that they werent taking the payments. The loan also does not appear on my credit report.
I wondered whether there is a reason why the bank had not pursued this as given the current climate, any loan outstanding I would imagine would be pounced up.
How do I work out whether there is something wrong with the loan that is preventing them from chasing me for payment?
Any suggestions?
I took out a graduate loan in 2001 with a well known reputable high street bank. It was a loan for £15,000 to pay for a post graduate course. The interest was fixed (I think) at 7% and it was to be repaid over 10 years. The monthly repayments were circa £220 and were to be taken as a direct debit from my bank account.
I made sure that I transferred the required amount into my bank account every month so that the repayment could be made. The repayments were taken from my bank account for a couple of years and then they stopped without any notification of the same to me. The only reason that I became aware of this was because I went to draw some money out of the account and could see that the £220 repayments had stacked up in the account as they were not be taken from the account by the bank.
I wrote to the bank to inform them of the same and I telephoned them to ask them why the direct debit had been cancelled as I had not received any written notification of the same. The repayments then started again however stopped again shortly afterwards. The bank then served me with a default notice and I agreed to repay them the amount that had stacked up in my bank account.
The repayments recommenced however shortly after stopped. I didnt pay anything for a couple of years and the bank did not once contact me to ask me to rectify this. In fact whenever I phoned them, there was always a problem tracing that acount.
I now pay the repayments directly into the loan account from another bank account to avoid this happening again. The sum owed though is circa £17k given that all of the interest that had accrued over the years that they werent taking the payments. The loan also does not appear on my credit report.
I wondered whether there is a reason why the bank had not pursued this as given the current climate, any loan outstanding I would imagine would be pounced up.
How do I work out whether there is something wrong with the loan that is preventing them from chasing me for payment?
Any suggestions?
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