Mistake by loan company..

the_insider

I guess the real question is what is the 'total cost of credit' on the loan? If the company have said in the T&Cs that it's x amount, it's unlikely that they'll accept less. But it's worth a punt, hopefully someone at the finance company will have a bit of common sense and waive some of the interest on the remaining balance.

Flyboy152

billymadbiker wrote: »

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)

I think the first call should be to the FSO.

darich

Just read the whole thread with interest (no pun intended)

I do agree with the posters saying that you should have checked at least the first payment to confirm it was the agreed amount but I'm not going over the old ground again.

To the OP...........

Firstly - have you never received a statement from the loan company in all the years of the loan running?? I've currently got a 5 year loan running and receive a statement every 6months (Natinowide Building Society)

Secondly - if you haven't received a statement then check your agreement. If things get desperate you may be able to argue that they've not complied with the Ts and Cs of the loan. I'm not convinced you'd get the remaining amount written off (I appreciate you're not trying to) but you may be able to use that as a bargaining tool for extra time. I just searched google - Co-op loans say they will provide a statement showing your balance....but Nationwide say they'll make one available, even though I receive one. Every loan company is different so check your terms.

Thirdly - check your credit file - promptly. I'm not sure how it all works but it could be that the credit files are amended automatically. The problem you might have is that if the payment should have been £277 but was £50 short every month, you may have been recorded as not paying the full amount. Like I said, I'm not sure if this is the case but there's no harm in checking and better sooner rather than later.
I appreciate that the credit file may be fine because no alarm bells have been rung before now but I'd still have a look.

I'd be interested to know how everything works out for you.
Best of luck.:beer:

stavros1981

How did this end? I am going through similar but they havent reviewed it annually 7 years running so want about £500 due to their mistake.

Cheers

Only_Humans_Blush

Whether our friend has 7 years of extra ‘bunce’, due to his Lender ‘fouling up’ is not the question. The issue is that ‘his lender’ fouled up, and as such has equal responsibility in respect of the outstanding balance.
All lenders are loath to admit responsibility, thus liability, when they make mistakes.
From personal experience, do not deal with a call centre or one of the minions that think they can control your finances, thereby your life.
Ascertain the name of the CEO of the organisation and write to him. Be polite, but firmly point out the salient facts. Intimate, that you could take the problem to one of the Ombudsman if they are not prepared to you resolve this matter.
If it’s a bank or large financial institution, that will automatically cost them £500, plus if they are seen to have been negligent, then common sense should prevail.
And to those who have berated our friend for not realising his lender’s mistake sooner, just remember ‘to err is human – to forgive is divine’, and nobody is perfect, least of all those that sit in ivory towers.
Man is the only animal that blushes. Or needs to!