Loan Account Closed - Mystery - Dilemma

leebo87

Hi all,

Thanks for taking the time to read this.

I took out a 4k career development loan in 2012 and next summer the final payment will be due. I was going through some old paper work and just wanted to double-check everything with the account was ok so called the bank earlier today.

I was told the account had been closed for over a year and despite my monthly payments going in regularly (minus a couple of late payments by a day or two) - the girl on the end of he phone couldn't contact the CDL department to find out more, but couldn't give me a good reason why it might have been closed.

I've changed address a couple of times since taking the loan out but have had mail forwarded and as far as I know I haven't been sent any letters telling me the account was in arrears or that it was being closed or passed on to a collection agency. I've checked my credit report with Callcredit and Equifax and neither report shows my CDL.

The girl I spoke to is going to look into it on Monday and get back to me.

My dilemma is thus... theres currently £1600 sat in the current account that the CDL should have been using to pay off the loan. Should I transfer this to my main account, pay-off an existing credit card debt and then negotiate new-terms with the CDL bank once they have figured out what has gone wrong? Or leave it and see what happens?

Thanks in advance, Lee

molerat

I would leave it where it is for the time being. If they do realise there has been a mistake and you can not come up with the money it could cause problems, you have little room to re-negotiate the terms of the loan. The loan could have been closed as they may have fallen foul of failing to notify you of the right to cancel so may have repaid the interest into the account and closed it. Wait until you have spoken to the correct department before doing anything with the money.

BrassicWoman

neither, you should write to them for a statement of account and take it from there. You know the money is not yours, so start from that moral ethical and legal point....

uncreative

Its called karma. You still owe the money do you not? So just leave it where it is. The minute you take it you will worry about whether you have done the right thing or not. Not worth the stress and worry IMO.

leebo87

Thank you everybody - sound advice. I'll wait until Monday and see what the bank has to say.

Does anyone have an idea why the bank might have closed the account for 16 months without chasing me for the debt?