Help with personal loan

lauralla

Hi. My mom had a personal loan with her bank account, and for some reason last year the direct debit was cancelled. Now she didn't cancel it, but she also didn't notice that it had been cancelled. So, at the beginning of this year, £4000 was taken out of her bank account, just like that - no notice, no letters no nothing. It turns out that what we think happened is the bank took the loan back. But...are they allowed to do this without sending a letter first....
This was over 3 months ago, and depsite numerous phone calls, etc and her personal bank manager attempting to sort the problem out, she has yet to even receive a letter confirming that it was the loan they took.
She has obviously now got a huge overdraft, and is suffering with loads of charges, she is unable to take cash out of the bank, and despite the promise of her bank manager, cheques are starting to be bounced, and she has already received one default notice.
Help....can the bank claim their loan back, without sending a letter?
Any and all help very gratefully received, my mom is really stressed out about this, and I am very worried about her. Thanks.

Rafter

If the bank manager is sorting it out - he should also be able to arrange a temporary loan or overdraft to cover things.

If her credit rating is shot to pieces because she has defaulted on the loan, the bank should still show some sympathy given your mum has every intention of repaying it.

Did she move or something and forget to tell the bank? seems really odd that they would take it all in one go without any attempt to contact her.

R.

lauralla

it gets more complicated than that though. you see she is a director of a company she and her brother set up, and as such her personal account is tied to the business account. now, this bank manager is going away for 2 weeks, and has extended her overdraft (which is running into thousands now)
anyway, its a bit confusing because apparently the bank were trying to send her letters about this loan, but the bank manager has been fielding her letters and stuff (not sure why - to do with the business) and so she has never received a letter, obviously this is a loophole. he has said he will get compensation for her, but he can't do this until her bank account is all settled, which is going to take ages because of this huge overdraft. she never cancelled the direct debit, shes one of these people who never checks their bank statements (naughty i know) so it must have been the bank for some reason.
and of course in the meantime, this is playing havoc with her credit rating, she is currently in the middle of re-mortgaging, and this is causing her problems.
are they allowed to take this money in one go without her receiving a letter? of course shes going to pay it back, it was a loan, thats what she was doing, but to take it all in one go....she can't afford it.
can we make them refund the money, and set up a new direct debit?

zcaprd7

Under the DD Guarantee you should be able to get all this sorted?

http://www.bacs.co.uk/BPSL/directdebit/generalpublic/yourrights/DD_yourrights.htm


"If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid."

lauralla

Thank you for that, I appreciate your help.