Appropriate Compensation from Bank Error

privs

My bank have given me a loan that I haven't signed for, nor agreed to the amount!

I got a consolidation loan last year, and cancelled the Protection by adding my name to a hand-written statement in a different branch. I received no confirmation paperwork. So I complained, only to find their error

I've now been given a copy of an unsigned loan drawn up in a branch I've never been into, by a person I've never met for a higher amount that I didn't agree too! Orginal loan for £5700, this new one £7100!!!

The £1400 extra is the amount of loan protection I would have been liable for. Unfortunately, this £1400 went (obviously without my knowledge) into my current account, and over the last 3 months, most of it is now spent!!!

WHAT SHALL I DO? Bank acknowledges their huge !!!!-up, but can I get out of paying this £1400 back as I didn't ask for it, sign for it, nor was I aware that I'd been given it.

tom188

Take responsibility for your own financial affairs and rather than blaming others for forcing you to spend money in your bank account, work out a way of paying it back. Do you not check your bank statements?

privs

Fair do's, but I didn't say I was forced to spend the money. I've had quite a bit of money from various sources going into the account so haven't needed to keep a close eye on it as I would usually.

Also, I had no cause to check my account, who presumes their bank has made a !!!!-up of this magnitude, just because they've changed a feature of a loan? If they'd sent the papaerwork then you'd have had a point.......

BTW, you're not the bloke who drew up the loan are you? I seemed to have rattled your cage a bit!

My issue is my bank have given me a loan for which I didn't request, agree to or sign for. Nor was I given ANY details of the new amount (which if I had I would have taken up with them ASAP). The first I knew about it was when they sent details of how much they wanted repaying.

---lee---

privs wrote: »

Bank acknowledges their huge !!!!-up, but can I get out of paying this £1400 back as I didn't ask for it, sign for it, nor was I aware that I'd been given it.

No you can't get out of it, legally it's their money and they have every right to ask for it back no matter how it ended up in your account. The best you can hope for is to remain on good terms with the bank and work out a repayment plan if you can't aford to pay it straight back.

If £1,400 arrived in my account unexpectedly (I wish), I would establish where it came from and who is belonged to before spending it – and I would certainly notice it!

I understand that you say you did not notice the extra money arriving in your account but really that’s your mistake and not a healthy way to operate an account.

privs

surely there is some liability on their part, not least because I received no notification from them about what they'd done?

I'm sure that legally they can't impose repayments when they has been no agreement, or that the loaned amount is wrong? I literally received nothing for several weeks (as the loan was deferred for three months til April).

One of the managers at the bank gave me a copy of the unsigned loan, and said if i was in her position she'd make a big issue of the fact it was drawn up with no signatures etc......

jonesMUFCforever

Have you spent the money that the loan was for?
If you have then you have agreed to the loan by association.
Your argument thay you spent £1400 unknowingly has more holes in it than Harry Belafonte 's bucket!

As I see it you have two choices - 1) pay back the money now or 2) agree to having the amount added to your existing loan.
The only thing you can possibly argue about is the interest rate.