Co-operative Loan refund

Marie2015

Yesterday I received a letter from the Co-operative bank about a loan I currently have with them. It stated that they were refunding most of the interest on the loan due to an error in their yearly statements to me. They deducted this interest from my current balance and it essentially means the loan will be paid off early, saving me almost £5000.



I have had several other loans over the years and I am now wondering if the other loan companies have made similar errors. A quick web search found that Tesco and HSBC are also making refunds of this nature.



I would like to know what I need to be looking out for on previous statements and whether I need to make a claim or if these refunds will be made automatically, as the Co-op have done. Is there some kind of online guide to these paperwork errors and if or how I can make a claim?

[Deleted User]

They'll write to you if you're affected.

antrobus

Marie2015 wrote: »

....I would like to know what I need to be looking out for on previous statements and whether I need to make a claim or if these refunds will be made automatically, as the Co-op have done. Is there some kind of online guide to these paperwork errors and if or how I can make a claim?

See here;
http://www.moneysavingexpert.com/news/loans/2014/11/tesco-starts-refunding-customers-over-paperwork-blunder

Marie2015

Deleted_User wrote: »

They'll write to you if you're affected.

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Thank you. That does make sense to me as Co-op would not have paid out unless they had too, suggesting other companies would also be forced to.

Some other threads on here are suggesting people need to make claims, particularly against Black Horse who I did have a loan with from 2007 to 2011[/FONT]. Surely Black Horse and others would also be forced to pay out if they had to?

Marie2015

Very helpful antrobus . Thank you. Looks like the refund process is automatic.

lsmcal1984

I received a letter today (dated 24th March) totally out of the blue, writing off a total of £2,578 on a 5 year loan. This has cut around 65% off the outstanding loan amount, meaning it will be paid two years early.
It does seem like these letters are being sent automatically after some kind of audit. Great news!