Halifax Loan incorrectly passed to Debt Collector

SkintAndWorried

Apologies this is so long - just want to get it off my chest too!

Took out loan with Halifax, completed paperwork in March, money went into my account next day (also Halifax), first payment due in June - everything was hunky dory. Completely out of the blue I got a letter last Thursday saying since I had exercised my right to withdraw from the loan agreement and not paid the money back within 30 days it would now be passed to a collection agency. This letter was on Halifax headed paper but was only 1 page which stopped mid-sentence (so there was no signature at the end or anything) and it had an unknown number (to me) at the top. Instead of calling them, I called the phone number on the loan agreement and they thought this was all very strange too, everything was fine with the loan and I should probably just ignore it! The day after that (Friday) I was bombarded with calls from Albion Finance and they backed up this strange letter that I had withdrawn from the agreement and Halifax had asked them to pursue me for the money.

I found this all very worrying and stressfull (like most of you I have loads of other personal stuff going on just now) and having Albion threaten me with court proceedings, etc. was the last thing I needed.

Anyway, after an awful weekend I spent yesterday and this morning going round the houses running up a huge phone bill, and eventually have got my complaint looked into. Halifax have now admitted it was human error on their part. They're now suggesting the best thing to do would be for me to actually go ahead and withdraw from this loan and complete the paperwork for another identical one.

This concerns me incase it has an adverse affect on my credit rating (applying for two big loans, withdrawing from one, involvement of debt collection agency)? And in case it there are any additional charges involved?

The loan paperwork states that the only way I can withdraw from the loan agreement is to put it in writing - they have nothing from me in writing, I have not been in touch at all since sending back the signed agreement. And even if the 'human error' has been to start the withdrawal process, shouldn't they have written to me confirming this much earlier on when I could have questioned it before it went as far as being passed to Albion??

Does anyone have any advice about whether I should just do as they suggest (withdraw from the loan & complete paperwork for a new one)?

Thanks for reading - I have no one else to talk these things through with and this has really got to me (bad timing I guess).

Tixy

I wouldn't want to withdraw from this and apply for a new one.
1 because it could result in something adverse being recorded on your file and you gave a pain in getting it corrected, and
2 you might well not get the same deal and same APR next time (as you'll already have an application on file recently).

I would stick with the loan you have and the agreement you have. Possibly write to halifax (to save phone calls) saying you are happy with the loan agreement you have entered into with them and have no wish to withdraw, say you'd like written confirmation from them that instructing albion was an error on their behalf, that the loan repayments will be collectedin accordance with the agreement and confirmation that nothing negative whatsoever will be recorded on your credit files.

SkintAndWorried

Thanks for such a quick reply Tixy - that makes a lot of sense and you've managed to put into words the thoughts that are going around in my head!