Lender has terminated my loan in error, where do I stand

Tixy

Yes I would be miffed if I was told I was in default but believed I had missed no payments

But I wouldn't have handled it as you have.

They may have made an error - mistakes do happen, and usually can be rectified quite easily, and if an error was made by them then you would be entitled for them to correct any mistakes and make sure your credit file reflected the true situation. But I do not think you have helped yourself at all with the way you have handled this.

Conrad2

molerat wrote: »

OP, when you are in a hole stop digging. They seem to have made a mistake and you have made matters worse by your actions and not following the correct complaints procedure. You need to speak to them and start grovelling.

What a load of !!!!!!!!

Thanks, very constructive. Have you no concept of law? It applies to banks too.

And what may I ask is the correct complaints procedure if it is not the channels provided on their website for such issues?

Conrad2

Tixy wrote: »

Yes I would be miffed if I was told I was in default but believed I had missed no payments

But I wouldn't have handled it as you have.

They may have made an error - mistakes do happen, and usually can be rectified quite easily, and if an error was made by them then you would be entitled for them to correct any mistakes and make sure your credit file reflected the true situation. But I do not think you have helped yourself at all with the way you have handled this.

I am sorry, I know this is well meant. But I did make a complaint that fell on deaf ears through one the lenders official channels as soon as I was aware of the problem and I didn't engage a collection agency to collect the money from me.:o

Tixy

With consumer credit the FOS is the main regulator.

To get the FOS to look at your case you need to have made a formal complaint in writing sent in the post and either waited for your lenders reply or waited 8weeks. An online web form or email is not sufficient.

Therefore the sooner someone makes a a formal written complaint, the sooner they can progress things to the FOS if needed.

DevCoder

Conrad2 wrote: »

I am sorry, I know this is well meant. But I did make a complaint that fell on deaf ears through one the lenders official channels as soon as I was aware of the problem and I didn't engage a collection agency to collect the money from me.:o

You made two mistakes

1. Email/webmail post is not a readily acceptable form of a complaint communication for the FOS.
2. You cancelled the DD

Even with your account in dispute you should have continued the DD (you could even pay the DD "under protest"). The money would not have ended up in a "black hole" , at worse it would have been in a suspense account, but even this would have been resolved within 24hrs by the banks Financial Internal Controls team.

Of the two actions above, the second is what caused the default, the first is what will hamper your attempts at a resolution. Although, no offense intended, your attitude displayed so far would also hamper those attempts as well.

Conrad2

A note of clarification.

In law, the debt and the payment agreement are separate. I am not claiming that I have no remaining debt with the lender and I never have. But I am asserting that the original agreement to pay that debt back (via monthly DD) no longer exists, this is based on letters to me from the lender and the collections agency. It is now down to the lender to decide whether to negotiate a new agreement, or to take me to court for the remaining balance. As I have never missed a repayment, as I would have continued to to make payments had the lender not terminated the agreement (which they have), and as I am not disputing that there is a debt, I am assuming that any court will have some sympathy with my position, and decide that the lender has acted in bad faith and with a heavy hand, seeing as the mistake was theirs, and given that I had made complaint about it at the earliest opportunity through the lender's own channels. With this in mind, I would guess that the lender would favor avoiding the court and putting a new agreement in place, and possibly accept a more favorable package for myself in terms of interest. I was hoping for some insight into what obligations I have and what influence I may be able to wield due to the lender's unfortunate actions.

I realise now that such concepts are a bit too high level, and out of the comfort zone to expect meaningful input from some on this forum; certain members seem to have virtually no issues at all with banking mismanagement, and feel that all responsibility is with the debtor, however they are treated.

I apologise for this misunderstanding, and thank those that responded with a genuine desire to help for their patience.

DevCoder

Fine, you want to ignore the advice of some very well positioned posters (both with a knowledge of banking law and the banking/credit industry) then go ahead, I certainly won't be offering anymore advice in this thread.

Just don't represent yourself if they call your bluff (not that they will, given what you have posted the recommendation from the FOS will be to accept what has happened as you have not followed the relevant complaint procedure with the bank as far as I can tell, and it won't proceed beyond that point if your are sensible).

Conrad2

krisdorey wrote: »

You made two mistakes

1. Email/webmail post is not a readily acceptable form of a complaint communication for the FOS.
2. You cancelled the DD

Thanks again, but...

1. Why would I bring the FOS into this? It was not a complaint to them, but to the lender. They have (most certainly) made an error, and should I have to represent my actions to a court, I will assert that I made a complaint through the channels they provided on their website.

2. There is no agreement, so lawfully the lender should not expect any further payments through that channel. This was their decision, not mine.

I am not at all offended. I think people are failing to see the ramifications of what the lender has done here, and they (the lender) should be made to understand that it is unacceptable.

And please, can someone explain how cancelling a DD three days after the lender terminated the agreement brings about a default on my part? This is nonsensical.

Conrad2

Thanks Tixy. I responded immediately with a written complaint to the lender's collections manager as soon as I received the collections notice, stating all the evidence I have.

pvt

Conrad2 wrote: »

In law, the debt and the payment agreement are separate.

This is nonsense, but let's just go along with it for a moment:

You said this all started when they wrote to you and asked for the debt to be repaid. You assert the debt and the agreement are separate. So why does them requesting you repay the debt have any effect on the agreement?

Lots and lots of people have offered you very sound advice here. You persist in ignoring it and putting your own bizarre interpretation on events. Not one respondent has agreed with any of your posts.

Calm down and follow the excellent advice you've been given to call them up and point out their mistake to them.