Will I have to pay my loan back too? (merged)

tub_2

I have set up a new account and am in the process of switching standing orders etc but have a bank loan. Should I pay this off before I try to claim. The loan was to cover overdraft and I wonder if the bank can use this to claw back charges?

nickmack

tub wrote:

I have set up a new account and am in the process of switching standing orders etc but have a bank loan. Should I pay this off before I try to claim. The loan was to cover overdraft and I wonder if the bank can use this to claw back charges?

It's covered under a seperate agreement so as long as you're up to date with payments, it should be left alone by the bank.

tub_2

nickmack wrote:

It's covered under a seperate agreement so as long as you're up to date with payments, it should be left alone by the bank.

Thanks for this. It saves me having to sort this out. Tub:T

reenie

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Hi all!

This is the first time i have posted on this website, i have requested an outline of my charges and received it. My worry is can they request the full payment of my loan back and my overdraft if they make me close my account?
This is really putting me off doing this as my loan is for 5000 and my overdraft is 1000 and if they asked for it back i couldnt give it. But at a time when i am drowning in debt 2800 quids worth of charges would REALLY help.
All thoughts and advice gratefully received!!
reeniexx

Edinburghlass_2

Your loan will be a different agreement but as the bank is likely to pay any reclaim received into your account this will go towards paying off your overdraft.

There are other threads regarding Cooperative but its really difficult to search on them but I'll do it now and try and find them

MoneyWaster2007

Hi there!! after reading about reclaiming bank charges, i decided to give it a go. as advised, i attempted to open another current account, however kept getting rejected due to my poor credit rating. then i found out about basic accounts designed for people with poor credit ratings like myself. it seems i would have no problem opening one of these accounts. the big problem i face (which i hope someone can help me out with) is that i have a loan with my current bank- halifax, and if they decide to close my account after paying up, they may also want me to pay up my loan in full!! i cannot afford to do this and also cannot get any banks transfer my loan to, due to my credit score. is there any way around this?? any help would be much appreciated

bengal-stripe

MoneyWaster2007 wrote:

i have a loan with my current bank- halifax, and if they decide to close my account after paying up, they may also want me to pay up my loan in full!!

The loan is a separate agreement. You have agreed to pay xxx-quid over yyy-months.

Presuming you are up-to-date with those payments, the bank cannot breach the agreement, close the account and ask for immediate payment of the outstanding monies. If you are in breach, the loan account is in a mess and you are behind with your payments, the bank might well say ‘enough is enough’.

MoneyWaster2007

:T Thank you very much for the advice. at the present moment in time, i have been unable to pay my last two repayments on the loan, due to redundancy just before christmas. i presume that it would be wise to wait until i am back in employment and able to pay the repayments until i attempt to reclaim the bank charges? Or would it be wise to wait until i have made a few successive repayments first to get things back on track?

EvilEdna_2

I believe the general consensus on the boards is that as the loan is a seperate agreement (ie not offset against your current account) the bank won't use the money claimed from your current account to pay the loan. However, banks can and will appropriate funds in your current account to pay missed payments/arrears. If the amount you're claiming back covers the missed payments, it could end up helping you as it will mean you don't have to worry about those payments?

wilky371

I am looking to reclaim all my charges from the years back, but I have one quick question before I do.

I have an existing loan with Lloyds for my business account with them.

The claim I am looking for is for my personal account, will they take a view on my business account which is now dormant apart from the business loan.

Any help appreciated.

Stephen.