Mistake by loan company..

telboyo

surely the OP gave the loan co permission to take 277 per month from his bank each month for 7 years. If thy have failed to do that it is their fault. The whole point is that the Direct debit scheme allows businesses to take money from your acc as long as they write to you and inform you of any changes.
if the initial agreement said £277 and they took out £227 without writing to him the op is entitled to a refund.

84*227=£19608. Problem sorted.

See below

http://www.bacs.co.uk/bacs/businesses/directdebit/collecting/pages/customersrights.aspx

Flyboy152

drbesty wrote: »

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?

If the loan company can make a mistake, why can't the OP?

Flyboy152

mjm3346 wrote: »

Think you are missing the point, you knew what they should be taking when you took the loan out, they were taking out less - as you never check you did not know this so the £50 each month they were not taking will have been collecting in your account and you should have enough sitting in it to pay them the shortfall (£4200) just without paying the extra interest that has arisen.

Me...I would have thought, "ooh, I must have made a mistake when he mentioned two hundred and seventy-seven, he must have said "twenty-seven," oh well, that's a relief."

v4l3ntin3

Have you now investigated why this was not picked up each and every month as arrears on the account? I would have thought that the account would go into collections every month and generated a letter or telephone call to advise you. Have you also checked your credit report to see if this has had an adverse affect on your credit rating?

Flyboy152

ekkygirl wrote: »

I have to be honest I would not have noticed it on my bank statement, only that they had taken it. The company set up the payment themselves so I would say they have to let you off with the interest accrued through their mistake. Ask if you can pay the difference over a year.

Or eighteen months, that'll clear the capital debt at two hundred and twenty-seven pounds a month.

wizz1664

Thanks for all the posts and the sensible advice.

I will not be speaking to them till early next week, and when I do I will certainly be asking them why the shortfall didn't flag up as arrears at their end.

For those of you that are interested, I will update on here!

Thanks.

geoffky

I can see why the op never noticed..some of us just let things go out of our account without checking all the time as to the amounts...i am guilty

telboyo

To be honest I never check Chip and pin machines- at Christmas I bought something for £29.99 it was rejected because the store clerk entered £2999, fortunately I did not have that in my current acc.

billymadbiker

telboyo wrote: »

surely the OP gave the loan co permission to take 277 per month from his bank each month for 7 years. If thy have failed to do that it is their fault. The whole point is that the Direct debit scheme allows businesses to take money from your acc as long as they write to you and inform you of any changes.
if the initial agreement said £277 and they took out £227 without writing to him the op is entitled to a refund.

84*227=£19608. Problem sorted.

See below

http://www.bacs.co.uk/bacs/businesses/directdebit/collecting/pages/customersrights.aspx

I think they would argue that they have a signed aggrement saying he aggreed to PAY THEM £277 p/m.
They may have only taken £227 but I think the small print will say something about him being resposible for making the full payments on time etc.

As mentioned, follow the complaints procedure and tell them you coul carry on paying the 227 p/m until the outstanding amount was paid off but ask for the intrest to be waived as a goodwill gesture. (or tell them you will be phoning watchdog)

davjan

OK - so what happens if the financial institution have calculated a monthly repayment to clear a loan by a certain date, the repayments have been made, to the penny, each month, according to these calculations, but they've miscalculated, and the loan won't actually be cleared by the final date?