Loan completion woes.

danowat

I wonder if anyone had encountered anything like this, and if so, was it eventually resolved.

I took out a loan with the Halifax many years ago, and have been paying the arranged standing order since the beginning, never missed a payment.

Back in August I noticed the loan was almost complete, it had £10 left to pay, so I phoned the banks loan department and told them that it was nearly finished and what happens now, they told me that they would close the loan, cancel my standing order and send me a completion letter, which I never received.

The following month I received a letter for non-payment, phoned the call centre and told them that my SO had been cancelled by themselves, and that the loan was finished, they said that I needed to pay £30, the £10 remaining on the loan, plus £20 for the non-payment letter, which I didn't agree to, so I settled the £10, and they would send a letter of completion (which again, never arrived) and thought the matter was over.

Another month passes and I receive another letter for non-payment, this time for the amount of two monthly payments, again, I call the call centre and explain the situation (again) and again they tell me that the loan is showing zero balance and they can't understand why I am getting letters, but I should ignore any further non-payment letters (?!), I moan and groan and was given a £30 compensation payment for my trouble, and told again, the loan would be closed and I would receive a letter (which again for the third time never arrived)

This week I receive a letter from the Halifax saying that as I haven't paid a payment for my (completed) loan, that they will send a representative (read collections agent) to my address.

Exasperated I again phone the call centre, who again tell me what I already know, so I asked to speak with a manager, there are no managers apparently, and the only person I can talk to is a complaints agent.

So I speak to the complaints agent and regal the whole tale, and he is perplexed, he can't understand why this is happening, and again tells me the loan is showing zero balance, however, he throws another nugget of information in, that despite my balance being zero, I haven't paid any interest on the loan since 2012 (?!) despite my SO being for the same amount that they originally set up.

Anyone had anything like this?, I am now worried that my credit rating is being affected (outside of my control) by these continual non-payment letters, and I am getting hardly any joy from Halifax about it.

[Deleted User]

Are you sure it was a standing order? That would be unusual, and would be controlled by you, rather than them. I don't think they could even cancel it as it involved you pushing a payment to them.

Sure it wasn't a DD? That should have ensured that all payments were collected accurately.

How much did you borrow, what was the term and what was the value of the monthly payment?

danowat

Not 100% sure, no, maybe it was a DD, but they have records of every payment, and their system shows zero balance (as did my online banking screen, but now just shows NIL), and they did indeed cancel the (DD) back in August when I first rang them.

[Deleted User]

Your bank statements will show what sort of payment it is.

What about the amount, term and payments? You need to ascertain whether you have paid the interest or not. Ideally, you should check the agreement, with total amount payable, but I'm guessing you won't still have that.

danowat

Loan was 8 years ago, plus two house moves since means, no, I don't have the original paperwork.

But surely if their screen is saying the balance is zero, and my online banking screen also said the balance was zero, then surely the loan is complete?

[Deleted User]

Hopefully. But not if there has been a system error in collecting the payments.

danowat

That was my worry, and if that is indeed the case, I assume that it will be down to me to make up any shortfall, even though it was them that set the payment amount?

Surely the system would have / should have, picked up any payment shortfall before now if that is the issue?

[Deleted User]

Well, if it's a system issue that's caused it, then no, the system wouldn't have picked it up.

You'll be liable for the total amount payable - which should be derived from the loan amount, the term and the rate. If the total amount payble adds up to what you've paid, then you may be able to argue that you've cleared it.

Do you not remember the original amount, or how much you have paid to date? That would be an easy check to see if you have paid any interest at all.

danowat

I'll have to see if I can find the original agreement, but a rough calculation tells me there is no way I've not paid any interest.

Edit : despite that, surely the bank have all the information on their screen?, why has it taken three 3 calls to the loan department and now a call to the complaints department, and still no one is any the wiser?

The loan department just kept saying, ignore the letters, your loan is complete, there is nothing to worry about.

JimmyTheWig

danowat wrote: »

The loan department just kept saying, ignore the letters, your loan is complete, there is nothing to worry about.

I think I'd ask for that in writing if I were you.

danowat

Have spoken with the complaints line again, and they have assured me that it's a problem with their system, and the loan is complete.

They have waived the £20 fee for the non-payment letters, and given me another compensation payment for the hassle, but still can't shed any light on why it's taken 4 non-payment letters, 4 phone calls over the course of 3 months, and escalating it to the complaints department to get it resolved.