Halifax loan

pgriffo

I have paid off a loan of £12, 500 to the Halifax on the 23 October, after getting a cheaper loan over a smaller time period from the nationwide, they sent the payment via 3 bank transfers 2 £5000, and 1 £2500, the Halifax dd was due out the 26th, when i tried to cancel it they couldn't, i rang the Halifax tonight to see when i would get the dd back to be informed that because i sent 3 payments it did not count as a settlement, and i need to ring up tomorrow for a new settlement figure, can you give me any advice please.

opinions4u

Interest on most Halifax loans is added monthly.

If your payment was due on the 26th, it's likely that the interest was added on the 25th. If you've sent payments on the 23rd they may well not have reached the loan account until after the 25th.

Additionally, if you've not specifically arranged the closure of the loan account it will remain open and accruing contractual interest regardless of your overpayment, as the closing entries on early repayment require manual intervention.

Ring them tomorrow, explain the circumstances and listen to what they say. Then ask them to repay it as at 23rd October. They may be within their rights not to though.

pgriffo

thank you for the advice, i had rang them to explain that i wanted to pay of the loan and asked if i could do so on my debit card and was told yes, when i tried to do so they told me i couldn't, i asked them about bank transfer and was told that would be ok, so i did this, the nationwide split the bank transfer up as it was to much in one go, i then rang the Halifax and explained that i had just paid the loan and could i cancel the dd, and was told that it would go out, but i would get it sent back by cheque within 10 days, so i can't seem to work out why this is now happening, they knew what and why the transfer took place

zppp

pgriffo wrote: »

thank you for the advice, i had rang them to explain that i wanted to pay of the loan and asked if i could do so on my debit card and was told yes, when i tried to do so they told me i couldn't, i asked them about bank transfer and was told that would be ok, so i did this, the nationwide split the bank transfer up as it was to much in one go, i then rang the Halifax and explained that i had just paid the loan and could i cancel the dd, and was told that it would go out, but i would get it sent back by cheque within 10 days, so i can't seem to work out why this is now happening, they knew what and why the transfer took place

I imagine that because Nationwide split up the payment, it is being treated as a lump sum reduction, which is why they still claimed the direct debit. Although you will have discussed paying the loan off before doing the transfer, how can Halifax know you didn't just change your mind and that rather then paying the loan off in full, you wanted to pay off a lump sum?

Is it all sorted now OP?

pgriffo

hope to sort it out tomorrow, good point about the lump sum, but thought because i had spoken to them about it they would have made a note on the system, because i had spoken to them about paying off the loan.

zppp

pgriffo wrote: »

hope to sort it out tomorrow, good point about the lump sum, but thought because i had spoken to them about it they would have made a note on the system, because i had spoken to them about paying off the loan.

I think it is a fair enough assumption. However working for a bank (not this one) that allows lump sum payments, we get loads of people calling up for a settlement figure, advice on how to pay it off in full, but change their minds and only pay in a lump sum payment. For this reason, we make customers call us to close their loan or make a lump sum payment to prevent confusion.

pgriffo

Just to update, rang them today, explained to the gentlemen who said that there was not a problem, the loan was paid off, they owe me the money back and would send me the cheque in the next 48 hours, thanks for all your advice:T