Loan Correction from Co-op

mottyt

Hi all,

Just after a bit of advice;

Ive today received a letter from the Cooperative Bank saying that they hadnt complied with the CCA 1974 and they provided some misinformation and during the period of 04/2011 to current i wasnt liable to pay interest during that period (ive no idea why...).

Anyway, its basically meant theyve reduced my loan by 1800 and currently now have around 800 left.

What im wondering is whether i have grounds to complain further about this and push for the loan to be cleared. I am delighted this has been corrected but also very annoyed by the mistake and i wondered if its likely that by complaining that their error on my loan balance has seriously affected how ive managed my finances and, ultimately, life decisions (because i thought i had more debt than i did) whether they might likely just write it all off, as i feel i have reasonable grounds for the complaint..

Thanks in advance for any advice.

DCFC79

You can try or you leave it as it is and continue to pay the £800 off.

skintpaul

Were you charged any late fees etc during that time?

patanne

Perhaps you should file for compensation for the whiplash you suffered when you read the letter and did a double take.

mottyt

No was always paid on time each month by direct debit. It said theyd refunded any interest and default fees that shouldnt have been charged.

ViolaLass

It's probably something along the lines of they didn't send paperwork to you that they technically should have sent i.e. you haven't actually been caused any harm but they're in the wrong and therefore weren't allowed to charge you interest (to make them get it right in future). If so, I think you've done pretty well already.

mottyt

Yeah absolutely, i do agree and am very pleased this has come about. Just wondered if anyone had experienced similar scenario and whether theres any point taking it forward.

Think I'll leave it and just enjoy the fact ill clear the loan about 14 months earlier than expected.

stator

Presumably you suffered no loses. If so they are under no legal obligation to pay you anything other than the interest they have already refunded you.
If you could prove that if you had known you could make partial loan repayments without penalty, you would have done so and this would have saved you from some consequential losses, then you might have a claim. Since you knew the loan payments at the begining I doubt you would win any claim anyway since they would just claim you should have budgeted for that amount regardless of their mistake.
But I would just accept the money and be thankful.

mottyt

Thanks Stator.

Thats where im at with it now so agree with what youve said. Its not knowing why its happened that confused me - at first i thought theyd charged me incorrectly but now it seems theyve made a mistake and as a result their punishment is not being able to charge interest. I still have no idea what that mistake is...think I'll call them today.

stator

mottyt wrote: »

Thanks Stator.

Thats where im at with it now so agree with what youve said. Its not knowing why its happened that confused me - at first i thought theyd charged me incorrectly but now it seems theyve made a mistake and as a result their punishment is not being able to charge interest. I still have no idea what that mistake is...think I'll call them today.

I don't know about co-op but most providers got caught out when the statutory wording changed regarding partial repayments.
The law said they have to send you a statement every year and that statement must tell you that you can make full or partial repayments whenever you want.
They didn't add the bit about partial repayments.

andyfromotley

This has happened to quite a few loan providers now. They are working to a set formula agreed with the regulators about how to compensate people for this. Your chances of getting more are nil imo.