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How often does a bank need to reconcile a personal loan?
Hi folks,
I'm looking for some advice.
I paid in a cheque to clear the balance of a personal loan about the start of April 2012 but then subsequently cancelled it and instead opted for Direct Debit payments over the remaining period of the agreement.
I was unable to do this as the bank stated that the loan had been settled.
It took them until 18th June 2012 to reflect this and I have the statement to prove it.
My question is, how often should the bank be reconciling / balancing my loan?
I hope you can help!
Thanks!
I'm looking for some advice.
I paid in a cheque to clear the balance of a personal loan about the start of April 2012 but then subsequently cancelled it and instead opted for Direct Debit payments over the remaining period of the agreement.
I was unable to do this as the bank stated that the loan had been settled.
It took them until 18th June 2012 to reflect this and I have the statement to prove it.
My question is, how often should the bank be reconciling / balancing my loan?
I hope you can help!
Thanks!
0
Comments
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So you asked in late March/early April how much needed to settle, paid the amount they requested and tried to cancel the cheque after it had cleared? Obviously the cancellation would not work, as there's no evidence of fraud or anything else untoward.
If they are accepting the amount quoted in April, rather than trying to say that you missed payments in May and possibly June, what do you have to complain about?0 -
I don't understand the question either.
Are you saying the cheque was stopped or not?0 -
I think OP means they successfully stopped the cheque but when they contacted the lender to reinstate direct debit payments the fact that they cheque had been stopped had not appeared on their computers - so they told him he had no balance to pay.
Once the issue was resolved, and it was clear a balance was owed they then sent a statement showing the amount owed.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Hi all, Tixy is correct.
I stopped the cheque and the money was returned to my account with Santander but it failed to show up on the loan (which is with HBOS) until June.
My real concern is that it took so long for HBOS to recognise that the cheque had been stopped. An HBOS branch manager said it definitely was an error on their part to tell me that the loan was settled and since he couldn't get the loans department to admit the mistake, he told me that the money was mine.
Skip forward to June, I still have the money as I've been scared to touch it so I am fine to settle the amount but I just want to find out if the bank have breached according to FSA rules by taking so long to reconcile the account.
Any ideas?0 -
Just hang onto the money as the bank can come back and claim it for the next few years. Put it in a high interest account and keep the interest for yourself, alternatively if you are really worried raise it as. A complaint with the bank, they will definitely get it back but you might get a bit of compensation.0
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Thank bigadaj.
I raised a complaint a while ago and they are now looking for the money back and, on the £1700 I owe, they're waiving all the charges applied for arrears on the loan, waiving the last 3 months repayments and giving me £100 compensation. All in all, it equates to £650 in my pocket which is an excellent final offer.
They still haven't been able to explain why it took so long to reconcile though and they don't sound as though they intend to investigate it further.
I could be greedy and reject the offer and go to the Ombudsman but I think it's a really good offer.
What do others think? Should I take it?0 -
Its a reasonable offer. I would take it.
It would be unreasonable if they tried to charge you for the last few months or charged missed payments etc, but obviously they are not trying to do that.
There is no FSA guidance that would mean they had to sort this quicker for you. Though it doesn't feel like it to you, 3 months is actually not that long a time in real terms - bearing in mind you'd still have needed to pay if they hadn't sorted it out for a couple of years. The only real obligation in terms of reconciling for a loan is that they have to send a statement out at least annually.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Thank bigadaj.
I raised a complaint a while ago and they are now looking for the money back and, on the £1700 I owe, they're waiving all the charges applied for arrears on the loan, waiving the last 3 months repayments and giving me £100 compensation. All in all, it equates to £650 in my pocket which is an excellent final offer.
They still haven't been able to explain why it took so long to reconcile though and they don't sound as though they intend to investigate it further.
I could be greedy and reject the offer and go to the Ombudsman but I think it's a really good offer.
What do others think? Should I take it?
Going to the ombudsman may mean they side with the loan company - what will you do then?
If it was me I would be asking the ombudsman to rule that the charge of £500 for referral to him be charged to your account.0
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