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Bank made error...I have to pay
Hi,
I took a loan out when I first graduated form uni, from a high street bank for £3000 in 2009, which I am paying back over a 2 year period. When the loan was being organised, I chose to take a 3 month payment holiday, which meant that although I would still pay interest for that period, I would not have to make a payment. I then started to make the payments after this period finished.
I have now received a letter from the bank which states that due to their admin error, no interest was added for the 3 month holiday period and that they will now be adding this on to my current balance. I am very unhappy as as far as I am concerned, I signed a loan agreement for a set amount so I do not see how they can now change this.
The loan arrangement was very badly handled at the time by the member of staff in the branch, and the only reason I did not complain was because I used the money to move house and I was too preocupied dealing with that to complain. To now find out that there was a major error, makes me very angry! The thing that makes me the most angry is when I read about the bonuses been given out to bankers from this very bank, whilst they penalise me for their error!
Does anyone have any advice for me please? Are they able to change the loan amount now?
I took a loan out when I first graduated form uni, from a high street bank for £3000 in 2009, which I am paying back over a 2 year period. When the loan was being organised, I chose to take a 3 month payment holiday, which meant that although I would still pay interest for that period, I would not have to make a payment. I then started to make the payments after this period finished.
I have now received a letter from the bank which states that due to their admin error, no interest was added for the 3 month holiday period and that they will now be adding this on to my current balance. I am very unhappy as as far as I am concerned, I signed a loan agreement for a set amount so I do not see how they can now change this.
The loan arrangement was very badly handled at the time by the member of staff in the branch, and the only reason I did not complain was because I used the money to move house and I was too preocupied dealing with that to complain. To now find out that there was a major error, makes me very angry! The thing that makes me the most angry is when I read about the bonuses been given out to bankers from this very bank, whilst they penalise me for their error!
Does anyone have any advice for me please? Are they able to change the loan amount now?
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Comments
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You signed a loan for a set amount and it sounds like that hasn't changed it was just that they hadn't added the payment holiday interest to your balance so the current balance would have been lower than it should have been. You're getting exactly the same deal as you applied for so why are you unhappy?There's no sense crying over every mistake.
You just keep on trying till you run out of cake.0 -
But surely I have signed for one amount so I should pay that, regardless of what I should have paid if they had completed the paperwork correctly?0
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The amount you signed for is likely to be the amount you would have paid if they had done the paperwork correctly. The error they made would have resulted in you paying back less than the agreed amount if it hadn't been noticed.There's no sense crying over every mistake.
You just keep on trying till you run out of cake.0 -
that is not the case here, my loan has been re-adjusted to a higher amount.0
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The bank is fully justified in insisting on what you signed up for. If the mistake had been in the other direction you would have, rightly, expected a refund. Clerical errors do not negate loan agreements.I used to think that good grammar is important, but now I know that good wine is importanter.0
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Well the loan agreement is binding to both you and the bank so write to them pointing them to the paragraphs in the agreement they have violated and ask them to remove what they have added to the loan. this is the first step.There's no sense crying over every mistake.
You just keep on trying till you run out of cake.0 -
It sounds like they are adjusting the loan to what you originally agreed, having made an error and not added interest correctly.Faith, hope, charity, these three; but the greatest of these is charity.0
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what does the loan agreement actually say then?0
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The thing that makes me the most angry is when I read about the bonuses been given out to bankers from this very bank, whilst they penalise me for their error!
In what way are you being penalised? They are only charging you interest for the amount you borrowed and over the time you have borrowed it.
If the mistake was in the other direction, say the interest rate was mistakenly doubled for the first three months - would you expect them to correct this and refund you the difference?My posts are my own opinions based on my experiences and info gathered from sites such as this.
They are not a substitute for professional financial advice - but you knew that already didn't you?
VSP 2011 - Member #25 - Started 6th December 2010 - Total As Of 4th May 2011 (21 weeks in!) - £323.67/£500 - So far so good!0 -
Hi,
I took a loan out when I first graduated form uni, from a high street bank for £3000 in 2009, which I am paying back over a 2 year period. When the loan was being organised, I chose to take a 3 month payment holiday, which meant that although I would still pay interest for that period, I would not have to make a payment. I then started to make the payments after this period finished.
I have now received a letter from the bank which states that due to their admin error, no interest was added for the 3 month holiday period and that they will now be adding this on to my current balance. I am very unhappy as as far as I am concerned, I signed a loan agreement for a set amount so I do not see how they can now change this.
The loan arrangement was very badly handled at the time by the member of staff in the branch, and the only reason I did not complain was because I used the money to move house and I was too preocupied dealing with that to complain. To now find out that there was a major error, makes me very angry! The thing that makes me the most angry is when I read about the bonuses been given out to bankers from this very bank, whilst they penalise me for their error!
Does anyone have any advice for me please? Are they able to change the loan amount now?
Did the original agreement include the payment holiday?0
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