Bank closed my account - what about loans ?

Ericwright_2

Hello

I have held my bank account with Nationwide for a very long time, 18 years to be exact.

I received a letter from Head Office saying i need to make 'alternative banking arrangements' and that they will be closing my account in 60 days.

I can still use my account but at the end of 60 days I will no longer be able to use their banking services.

Question is, they have not mentioned my loan that i have taken from them - will they be calling it in ?

I am very distressed that they will want it all back immediately but their letter does not mention it, instead the letter says any credit card or overdraft facilities will be withdrawn - but no mention of the loan ??

jonesMUFCforever

Under the CCA they cannot ask you to pay early unless you have breached the loan conditions.

Only you will know if there are transactions on your accounts which have triggered Nationwide's decision.

Thrugelmir

Ericwright wrote: »

Question is, they have not mentioned my loan that i have taken from them - will they be calling it in ?

Unlikely. You'll simply continue to repay the loan from the bank you switch to.

DCFC79

Sounds like the bank account is just being closed, the loans is fine.

Ericwright_2

Thank you all.

But I can't understand how they will let me continue with the loan and yet they won't let me bank with them ?

Surely if they do not want me as a customer, they will be telling me to repay the loan back in full.

And, if the above advice is sound, then can I possibly apply for a mortgage from them or one of their sister companies ?

10pence

Popped few responses in red;

Ericwright wrote: »

Thank you all.

But I can't understand how they will let me continue with the loan and yet they won't let me bank with them ?

Surely if they do not want me as a customer, they will be telling me to repay the loan back in full.

As answered:

jonesMUFCforever wrote: »

Under the CCA they cannot ask you to pay early unless you have breached the loan conditions.

The lender cannot recall or cancel the loan, if you breach the T&Cs of the loan by missing payments then they can recall it.

And, if the above advice is sound, then can I possibly apply for a mortgage from them or one of their sister companies ?

Probably not, they will check your name against an internal database as well as external credit reference and fraud agencies.

chris_m

Ericwright wrote: »

Surely if they do not want me as a customer, they will be telling me to repay the loan back in full.

They may not want you as a banking customer but, unless you break the T&Cs of the loan they have no option but to keep you as a loan customer.

jonesMUFCforever

Eric do you have any idea why they want to close your account?
Have you had ''strange'' monies go through your account for a third party for instance?

macman

They no longer want to offer you banking services, which might include further credit. But they have no option with the loan but to keep you as a debtor.