Nationwide gave wrong settlement figure - what are my rights?

Marley_

Hi

I hope someone here can help advise me. I had a loan with Nationwide BS taken out 5 years ago (I was in deep trouble then, but have slowly worked my way out of it all, without missing a payment!).

I recently got a lump sum from work in Nov. I contacted Nationwide via their website to ask for a setttlement figure. They gave me a figure and details of how to pay it. I paid it in the time given. Cancelled my DD. thought no more about it, assuming the loan was closed.

A few days ago I got a loan statement and was distressed to find there was still over £800 owing. My extra lump sum payment was there but the balance hadn't reduced to zero. There were failed reversals where they'd tried to take the DD but failed. I've had no communciation from them about this at all. There was interest on there too.

I wrote them a polite email back via the website explaining the issue, and got a note back saying they'd got it wrong and given me the wrong settlement figure. They offered to refund the interest, but said I still owed the main amount.

I'm livid about this - I can imagine their response if I said I wasn't paying them because of a mistake! More to the point I'd budgeted for Xmas and ongoing costs assuming the loan was paid off and I need those pennies.

I wrote a very strong mail back telling them to reconsider. They've come back and said they will put an offer in the post. I have a feeling this will either be for a reduced settlement, or for time to pay it off.

What are my rights in this? I feel it's their mistake - they didn't even contact me to tell me about it and if I hadn't told them God knows what would have happened.

Can anyone suggest the best way to handle this and what my rights are?

Thanks, in advance

Marley

bargainbetty

If you have a written document from them giving you a full settlement figure, and have paid it, then you have met the terms they laid down.

If you still have the document (whatever it was) send them a copy stating that you consider the matter settled according to their OWN request for payment.

If you don't have it, when they send an offer ensure that all interest, bounced charges, fees etc are removed fully before you even consider reaching any agreement with them. You are not responsible for their mess and should pay no fee associated with it. If they argue (in either case) request that a formal complaint be lodged against their actions and escalate it as far as you can go. Once they realise the error, they might write it off, but you have the banking ombudsman after that!

Good luck x

andy.m_2

They have made a mistake, they have removed the interest due on the loan.

I guess you have the right to pay back the proper amount and you are still better off as you have paid less interest than you should have over the term.

Fiddlestick

Marley_ wrote: »

I recently got a lump sum from work in Nov. I contacted Nationwide via their website to ask for a setttlement figure. They gave me a figure and details of how to pay it. I paid it in the time given. Cancelled my DD. thought no more about it, assuming the loan was closed.

Did you get anything in writing saying that the loan was closed?

What are my rights in this? I feel it's their mistake - they didn't even contact me to tell me about it and if I hadn't told them God knows what would have happened.

Do you have their original settlement offer in writing?

CLAPTON

what did the settlement figure say about paying the next DD ?

Marley_

Hi

Thanks everyone for your help and support. I've copied a transcript of what Nationwide sent me originally below. This was electronic, from their website so I think it's pretty conclusive.

I didn't get anything in writing saying the loan was closed - the first correspondence I've had after this was the loan statement showing that it wasn't! I'm sure if I'd chased down a closing statement I'd have spotted their error earlier which would have helped me a little, but would still have been upsetting.

The only comments around the DD/payments were from them incase I'd made other payments (didn't happen) and from me confirming I'd made the payment and cancelled my DD.

They've now written to me formally, accepting their error and offering me £100 off and they've adjusted their interest. I'm still not happy though as I still say they made a mistake and in now £700+ worse off than I thought.

I am going to take this higher and will escalate inside Nationwide. Does anyone know the best way to contact the financial Ombudsman service and what sort of response they are likely to give?

Thanks again!

---

Original Message

---

Dear Mr
Thank you for your message.

I confirm you will receive a closing statement once the account has been closed.

Please let me know if you have any further queries. If you prefer you can contact our Customer Service Team on 08459 302012 between 8am and 6pm Monday to Friday.

Regards
Laura Anger
Customer Representative
Nationwide Personal Loans Admin

--- Original Message ---

Received: 26/11/10 09:38:31 o'clock GMT
To: <customer.bbm@nationwide.co.uk>
Subject: Re: Personal Loans

That's perfect thanks. I've made a transfer from my bank as per no 2 for the amount you quoted, and I have cancelled my Direct Debit.

Please can you confirm when the loan is formally settled off.

Thanks for your time, support and for the loan itself.

Kind regards

---

Original Message

---

Dear Mr
Thank you for your message.

There are 4 ways in which you can settle your loan. These are:

1. Send a cheque to:

Nationwide Building Society
Personal Loan Admin
Kings Park Road
Moulton Park
Northampto
n
NN3 6NW
The cheque should be made payable to Nationwide Building Society - then last 8 digits of your loan account number.
2. Transfer funds from your bank account using the following details:

- Sort Code: 070070
- Account Number: 00001760
- Reference: 070070/last 8 digits of your loan account number.

3. Make a transfer using Internet Banking:

- Sign on to the Internet Bank
- click the 'My Accounts' tab at the top of the page to display the 'Account List'
- click the FlexAccount which the payment will come from
- click 'Payments & Transfers' from the menu on the left hand side
- click the 'Manage arrangements' tab
- click 'Set up a new single arrangement'
- select 'Another Nationwide account' from the 'payment category:' drop down list
- click 'Next'
- in the 'Name of person to pay' field enter 'Nationwide'
- in the 'Arrangement description' field enter 'Settlement'
- select 'Personal Loan' from payment category drop down list
- enter loan account number in full
- click 'next'
- check the details and click 'Confirm'
- click 'Transfer money'
- enter the amount you want to pay and the payment date
- check details and click 'Confirm'

You can now click 'Payments Due Page' to view your payment.

4. Call our Customer Service Team on 08459 30 20 12 who will be able to amend your direct debit details accordingly to settle the account balance.

Please let me know if you have any further queries. If you prefer you can contact our Customer Service Team on 08459 302012 between 8am and 6pm Monday to Friday.

Regards
Joe Beck
Customer Representative
Nationwide Personal Loans Admin

--- Original Message ---

Received: 23/11/10 14:21:56 o'clock GMT
To: <customer.bbm@nationwide.co.uk>
Subject: Re: Personal Loans #3433677#

That's excellent, thank you. I'd like to settle the loan off now. How do I go about this? I have the funds in a non-Nationwide current account.

Kind regards

---

Original Message

---

Dear Member,
Thank you for your message.

I have arranged for a settlement figure to be posted to you today. This will give you a breakdown of the figure to redeem.

Your settlement figure is £3339.73 and is valid up to to 29 December .It takes into account the last payment made on 10 November.

If a loan payment is taken before your loan is settled, you will need to deduct this amount from the settlement figure before repaying the loan in full.

Your loan was advanced for £8,000.00 in September 2007 over a 5 year term.

Please let me know if you have any further queries. If you prefer you can contact our Customer Service Team on 08459 302012 between 8am and 6pm Monday to Friday.

Regards
Susan Roberts
Customer Representative
Nationwide Personal Loans Admin

Susan Roberts
Personal Loan Admin Team

--- Original Message ---

Received: 19/11/10 07:24:51 o'clock GMT
To: <customer.bbm@nationwide.co.uk>
Subject: Personal Loans

Hi

Please could you send me an up to date settlement figure on my personal loan?

Kind regards

smoggie1977

Yes I can give you some contact details.

[EMAIL="Peter.earl&#64;nationwide.co.uk"]Peter.earl@nationwide.co.uk[/EMAIL]

here is part of the execs office. Say Mr Dadson sends his regards.


Peter Earl
Senior Member Relations Manager -Member Service
( 01604 854503 Int 854503 7 01604 853096 Int 853096