Mistake by loan company..

wizz1664

Hello all,

I'll keep it as brief as possible.

Almost seven years ago I took out a loan.
I have been paying it off faithfully, every month without fail, no payment breaks, missed payments or payment holidays.

The loan is due to be repayed in three months time, and today I received a statement, which shows my next two payments at £227 per month which is what I have been paying all along.
However, it says that the last and final payment is £5880.

Upon further investigation, and having spoken to the loan company, (very large well known company) it seems that they have been taking less than the required amount every month. They should have been taking £277, not £227

They have admitted that its their fault, that there has been an error or something has been set up wrongly at their end and they have apologised...

I will have repaid them all that was borrowed, plus about £1000 extra in interest, but obviously they were expecting a lot more than £1000 interest for a seven year loan.

I have left it with them for a few days and am waiting for them to come back to me, but was wondering if anybody else had experienced anything similar, what the likely outcome could be, and where I stand legally on this?

Thank you in advance for any help..

Malky

What's the monthly installment amount in your agreement?

wizz1664

£277.
I have done a few sums also, and the difference between what I was paying and should have been paying adds up to £4200 not £5880, so it looks like they are trying to charge me interest on what they undercharged me.
Not happy!

[Deleted User]

I suspect the least they could/should do is write off the additional interest,assuming it was paid by direct debit then they are responsible for requesting the agreed payment each month,although i`m wondering why its taken you 6 years and 9 months to realise the error?
ask for a copy of their complaints proceedure and follow it to the letter

wizz1664

The loan and direct debit was set up 7 years ago, and I haven't looked at the agreement since.
It has only come to light because they sent me a statement today.

McKneff

So youve been chekcing your bank balance for 7 years and not noticed the error.

wizz1664

McKneff wrote: »

So youve been chekcing your bank balance for 7 years and not noticed the error.

To notice the error I would have had to compare the agreement with a bank statement. I had no reason to do this.
The company have never noticed the error and they set the dd up, so why would I notice?
Unless you have anything of interest to post, then don't bother.
Thanks

McKneff

You would have had reason to do this when the first/second dd went out. To check the agreed amount had been taken out.

And what you find of interest doesnt mean other people dont, and you cant dictate who can post on these boards, least of all what they say.

Learn from it and check, check, check. We all make mistakes.

drbesty

I'd assume the company don't regularly check these sort of things, whereas you hopefully check your bank account at least once a month. Did you take out a loan, then instantly forget how much the monthly repayment was?

mjm3346

I can understand not noticing for a month or two but not at the end of a year when there would have been £600 more in the account than expected. If you don't check you will have assumed they were taking the correct £277 out each month so now you should have over £4000 extra sitting in your account that you can pay them with and just try to get the unpaid interest charge waived.

wizz1664

Please refer to the last paragraph in the original post.
You don't know anything relevant, and saying that I should have checked something seven years ago is of no interest to me, and I would guess, most other normal people.