Help! Trouble with repaying loan

gamer16

Hi,

Hopefully someone can offer me some advice with this.

I was 21 when I took out a loan in 2011 with a bank for a Master's degree. (Please don't remind me of how naive I was with this). Whilst going through everything with the personal advisor I was led to believe that repayments would not begin until September 2014.

However, I have recently learnt that this is actually due to begin this October!!!

I currently have a job - but this unluckily ends at the beginning of October without any possibility of renewal. This job was only a 6 month contract - so I haven't had the possibility to save anything to help repay part of the loan.

I got in touch with my local branch manager two weeks ago - he was surprisingly very helpful and nice, not what I expected. He asked me to put everything in writing and said he will see what they can do with it. He's now came back with me with two choices:

- To make a formal complaint about being misled and see if it can be resolved through that (As the letter I gave him was not quite mean enough to be considered a complaint)
- OR go to the creditors, ask for one more year deferral and pay back within two years instead of three (which will affect my credit rating and will be huge monthly instalments)

I'm not sure what to do. It is likely that I was misled through miscommunication more than anything else as I've no proof to say otherwise and they could likely tell me to (politely) go away without any solution.

Obviously going to the creditors is scary. Paying back this loan within two years will be very difficult and I'm not sure what the consequences will be for my credit rating in the long-term.

Any advice? Would appreciate it

(Bank manager seemed to be subtly recommending to go through the complaints route to see what happens)

DCFC79

So you dont have no documentation to say when the payments started ?

You should be able to do an SAR (cost is £10 i think) to ask for a copy of the documents.

Yes id put a complaint in and see where it goes.

gamer16

Sorry should have said.

I have the contract in hand and it says the length of deferral period to begin from when loan is received. Which, I know, makes them right.

But the personal advisor always gave me the opinion that it was definitely September 2014 - I've never been so sure of anything other than that this is when it would begin. So the branch manager is saying that I was misled and I can complain about that.

If nothing happens with the complaint, is it possible to go down the route of the creditors anyway?

Thanks

happy_bunny_2

You can also get a copy of the agreement for £1, but I suspect its not gonna be in your favour.

As said, try the complaint route.

gamer16

Can you point me in the right direction for a template that could work for the complaint?

Thanks

jacques_chirac

gamer16 wrote: »

Sorry should have said.

I have the contract in hand and it says the length of deferral period to begin from when loan is received. Which, I know, makes them right.

But the personal advisor always gave me the opinion that it was definitely September 2014 - I've never been so sure of anything other than that this is when it would begin. So the branch manager is saying that I was misled and I can complain about that.

If nothing happens with the complaint, is it possible to go down the route of the creditors anyway?

Thanks

No, the bank manager is saying you can complain that you feel you were misled and they will look into it. The problem you have is that the paperwork contradicts what you recall, and given that you are capable of studying at Masters level, they will assume you have the intelligence to understand it. Added to which, the CDL is commonly marketed as having repayments that start a month after your course ends, not a year.

If you search for the PPI misselling template you can adapt it for your situation.

I'm not sure what you mean by 'the creditors'. If you are unable to pay you should speak to the bank and arrange a repayment plan. Be aware that your credit file may end up being damaged as a result.

happy_bunny_2

This would need a custom letter.

Just say you want to complain, state the facts, tell them what you want them to do to correct it (pay a year after)

Send in writing, signed for.

No response after 8 weeks or if they reject then you can take to FOS.

gamer16

'The creditors' was the term the bank manager used. He said it gets took away from the branch and the credit department deal with it. As its a breach of contract it'll damage my credit rating completely. He said that obviously I don't want my credit rating effected and making a formal complaint would do less damage

gamer16

happy_bunny wrote: »

This would need a custom letter.

Just say you want to complain, state the facts, tell them what you want them to do to correct it (pay a year after)

Send in writing, signed for.

No response after 8 weeks or if they reject then you can take to FOS.

Thanks!! May as well try, nothing to lose at this point

jacques_chirac

gamer16 wrote: »

'The creditors' was the term the bank manager used. He said it gets took away from the branch and the credit department deal with it. As its a breach of contract it'll damage my credit rating completely. He said that obviously I don't want my credit rating effected and making a formal complaint would do less damage

You mean debt recovery

Making a complaint will only do less damage if they uphold your complaint.

gamer16

Ah thanks!

If I make the complaint and it doesn't go in my favour - will any damage be done?