Can a bank do this?

St0kkers

Hi,

Got a scenario, which doesn't sound quite right to me and I am looking for confirmation or advice.

I have had some dealings with a will company and had to take out a loan. I cancelled the arangment at the last moment, before the 14 days grace was up. My own bankers suggested that I cancel the Direct Debit, which they did for me, and informed the Bank where the loan came from. I was lead to believe that I was the one taking out the loan.

This evening, I had a call from the bank and it seems like the bank has paid the money to the will company and I have to continue paying the bank until the will company returns the payment to the bank. After the experience I have had with this will company, I am not confident that they will settle soon.

At present, I am in dispute with the will company and they do not return my emails. The last time we spoke on the phone over this, they were using high pressure sales tactics to persuade me to continue, but I am adamant NOT to. During the discussion, the lady I was talking to made a remark and shortly afterwards said something different and when I reminded her that she had told me different, she said she hadn't. I then told her I would check up later, as I was recording the conversation, to which she said I couldn't do that and she then said she was terminating the discussion and hung up.

Not what I would have expected from a professional 'legal' company, but I would like some advice as to the financial side.

Many thanks.

Stokkers.

forgotmyname

A loan for a will?

If you took out a loan then your bank paid the loan company which maybe linked to the will company. I used to work for a company that had an in house finance department that used to lend to sub prime customers.

You stopped the DD too late for the first payment. Its gone until you can claim it back. Not the banks fault.

Whether you can claim it back or need to pay the rest depends on the terms and conditions and what work has been done already i guess.

Financial side, check your terms and conditions to see if you can cancel it and whether fees are payable.

St0kkers

Thanks for your reply. Unfortunately, I can't hold my concentration long enough to read these 'books' of terms they's given me. Will have to get my son to sort it out.

As an aside, I have read a report about the will company from a company called Glassdoor, that was mad by an ex-employee, so it's biased, but what was said was exactly what i thought as a customer!

Will have to stop worrying about it and go back to bed. I'm too old for this lak!

Thanks, again.

Smodlet

Hello and welcome. Would the Direct Debit Guarantee not apply in this instance? Under this, you can instruct your bank not to pay a DD (unless it was indeed too late and it had already gone out) I did this once on the same day an amount was taken and did get the money back there and then but was informed that, had it been after 15.30 it would have been too late. Maybe that is the problem. Sorry, not being much help, am I?

Good luck with getting it sorted.

meer53

If you took out a bank loan and paid the Will company with the money from the loan, you will have to continue paying the loan until you get your refund.

Nearlyold

St0kkers - Your original post is a little unclear so its difficult to advise.
With regard to the loan:-
Who lent you the money?
Did you arrange the loan yourself? or-
Was the loan arranged by the Will Company? NB This would probably mean the money borrowed would be paid directly to them.

In this paragraph

This evening, I had a call from the bank and it seems like the bank has paid the money to the will company and I have to continue paying the bank until the will company returns the payment to the bank. After the experience I have had with this will company, I am not confident that they will settle soon.

Who is the bank that called you and what do you mean by "the bank has paid the money to the will company" are you referring to the loan advance or the direct debit 1st monthly payment.?

What is the 14 day grace period you refer to having cancelled in? Is the 14 day right to withdraw the lender provides or a cancellation period from the Will Company whereby you can cancel whatever it was you had agreed for them to do for you?

forgotmyname

All good reviews are to be treated as SPAM and all bad ones are customers that have a grudge

Anything inbetween is to be treated with caution

dogshome

It's quite common for the Executor/s of an estate to take out a loan to pay HMRC the inheritance tax due on the estate.
Until the taxman get's his whack all the assets are frozen, so if there is not enough cash in the estate to pay the tax a loan is the only avenue open.
The lending bank examines the estates assets before making the loan, to make sure there will be sufficent equity left to clear the debt.

StOkkers has my sympathy for being in the situation of being Executor to an estate involving a 'Will Writing' company - They may have seemed a friendly and cheap option to the deceased, but the chances are that the contract hands them the right to handle the finances of the estate and take big fee's in the process

CLAPTON

dogshome wrote: »

It's quite common for the Executor/s of an estate to take out a loan to pay HMRC the inheritance tax due on the estate.
Until the taxman get's his whack all the assets are frozen, so if there is not enough cash in the estate to pay the tax a loan is the only avenue open.

this is not so
virtually all financial institutions, banks, building societies etc will enable money to be released to pay HMRC
if a property is involved you can come to an arrengement with HMRC at a modest rate of interest

dogshome

Horses for Courses
For Banks/Institutions to release money to pay the HMRC, there has to be enough cash in the accounts to meet the Bill - Some estates are Asset Rich but Cash Poor.

My own experience in dealing with the Revenue was that the road to a Delayed payment + Interest deal, was so intricate and time consuming that it was quicker and easier to get a bank loan

GingerFurball_2

Smodlet wrote: »

Hello and welcome. Would the Direct Debit Guarantee not apply in this instance? Under this, you can instruct your bank not to pay a DD (unless it was indeed too late and it had already gone out) I did this once on the same day an amount was taken and did get the money back there and then but was informed that, had it been after 15.30 it would have been too late. Maybe that is the problem. Sorry, not being much help, am I?

Good luck with getting it sorted.

The Direct Debit Guarantee does not apply unless the originator has erred in making a claim.

If you instruct your bank to stop payments and they fail to do so, the originator is not at fault if they continue to take payments.

In that case, I would complain to your bank.