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Co-op Career Development Loan Payments Issue
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FilthyOstrich
Posts: 7 Forumite
in Loans
Hi everyone,
I’m new here and this is my first post.
I took a £10,000 career development loan out 5 years ago with Co-Operative bank and I finished paying back the amount stated on my online account in February this year.
I was only due to pay back around £100 of my usual £208 fixed payment as that was how much was left.
When the big day of FINALLY paying my loan off, I was given a nasty shock. They had taken the full amount again, which left my loan IN CREDIT by around £100. “Strange” I thought to myself. Spoke to a very helpful gentleman who was equally as perplexed as I was by the situation. He checked my statements and agreed it was very strange and also acknowledged I had been paying my interest as I went? “No worries” he said. He sent arranged for a settlement letter to be sent with a view to allow me to accept the excess money I had paid, back into my account.
Things got worse when the letter arrived. Subtext of this settlement figure was… “You owe us £1600 if you would like to settle”
Again, I called and spoke to a very helpful lady who said that it wasn't right but told me that I needed to speak to a different department as it wasn't in her power to do anything about it. This is where my positive outlook on Co-op has begun to change.
This morning I spoke to a delightfully jumped up member of their customer service team who took every opportunity to berate and interrupt me throughout the call.
Amongst this, she managed to tell me that I do in fact (apparently) owe this money and that what has happened is certain CDL had interest incorrect applied to them, so as a result I wasn't paying any for two years until this was rectified?! So, despite my loan account showing that the whole loan has been wiped out and I am in fact in CREDIT, they are now telling me that’s nonsense and that I owe them 8 more repayments.
I’m absolutely spitting feathers here and completely unsure of what to do! The Citizens Advice adviser I spoke to this morning spoke very highly of this forum as a place to go for help.
So, here I am. What do I next?! HELP!
Many thanks.
I’m new here and this is my first post.
I took a £10,000 career development loan out 5 years ago with Co-Operative bank and I finished paying back the amount stated on my online account in February this year.
I was only due to pay back around £100 of my usual £208 fixed payment as that was how much was left.
When the big day of FINALLY paying my loan off, I was given a nasty shock. They had taken the full amount again, which left my loan IN CREDIT by around £100. “Strange” I thought to myself. Spoke to a very helpful gentleman who was equally as perplexed as I was by the situation. He checked my statements and agreed it was very strange and also acknowledged I had been paying my interest as I went? “No worries” he said. He sent arranged for a settlement letter to be sent with a view to allow me to accept the excess money I had paid, back into my account.
Things got worse when the letter arrived. Subtext of this settlement figure was… “You owe us £1600 if you would like to settle”
Again, I called and spoke to a very helpful lady who said that it wasn't right but told me that I needed to speak to a different department as it wasn't in her power to do anything about it. This is where my positive outlook on Co-op has begun to change.
This morning I spoke to a delightfully jumped up member of their customer service team who took every opportunity to berate and interrupt me throughout the call.
Amongst this, she managed to tell me that I do in fact (apparently) owe this money and that what has happened is certain CDL had interest incorrect applied to them, so as a result I wasn't paying any for two years until this was rectified?! So, despite my loan account showing that the whole loan has been wiped out and I am in fact in CREDIT, they are now telling me that’s nonsense and that I owe them 8 more repayments.
I’m absolutely spitting feathers here and completely unsure of what to do! The Citizens Advice adviser I spoke to this morning spoke very highly of this forum as a place to go for help.
So, here I am. What do I next?! HELP!
Many thanks.
0
Comments
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what does your original loan agreement say about loan repayments - amount and number of payments.0
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Hi Clapton,
Currently rummaging to find it.
I think it may be at a different address.
If I went into my local branch tomorrow morning would they be able to access a copy of it do you think?
Thanks for the swift reply!0 -
You could try, I'd also give writing to them a try.0
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60 * £208 = £12,480 so you've certainly been paying some interest, about 9.1% APR if my calculations are correct. Does that ring a bell?
Once you've found the documents I would write a strongly worded letter of complaint.Changing the world, one sarcastic comment at a time.0 -
Thanks for your reply!
I've just had a look at the statements online, I can only get as far back as 08/2013.
On this statement they have been charging interest in the ball part of £80 - £70 every 2-3 months, so you are absolutely spot on there. Interestingly, the standing order has a date to end on 09/09/2015. That was previously flagged as a mistake when I made the initial call.
Now I'm worrying...
How would you word this letter? I've never had anything involving banks to sort out!
Thanks again.0 -
Keep it short but to the point.0
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If you don't have the original agreement, including the interest rate, then go ahead and send the Subject Access Request and get copies of the original agreement from co-op.
Then send them a letter complaining about the fact that they made the mistake in the first place. Complain about the fact that they didn't let you know. Complain about the fact that when you called you were given incorrect information. Then ask that since they have made so many mistakes that they write off the interest they failed to charge in the first place. As DCFC79 have said, try to keep it short and sweet, don't rant or insult anyone.Changing the world, one sarcastic comment at a time.0 -
How do I go about doing that? Just go into a branch or do I need to call?
I'll head into my local branch tomorrow morning and let you all know how I get on.
Thank you for your help so far!0 -
FilthyOstrich wrote: »How do I go about doing that? Just go into a branch or do I need to call?
I'll head into my local branch tomorrow morning and let you all know how I get on.
Thank you for your help so far!
I wouldn't advise doing this. Having worked for them in the past I know that branch staff are useless/powerless in regard to almost anything.
They're likely to phone the relevant department and then hand you the phone.
You'll be better off finding out which department deals with this and phoning them, it'll save you a trip anyway. I "think" the Debt Recovery Unit (Recoveries) used to deal with CDLs but I may be wrong and it may have changed since my tenure.0 -
Send a Subject Access Request to the address on your agreements/statements. I'm sure you can find a template on googleChanging the world, one sarcastic comment at a time.0
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