Consolidation loan error

Gedrog

Hi Guys

I am new here but for the first time in my life I think I need some advice possibly someone has gone through this before, I recently contacted my bank to consolidate two loans into one and borrow some extra that I urgently needed. The new loan was approved and they paid one of the loans off. I can see in my account the balance being paid into my account then the balance of the second loan taken out leaving me with the extra I received for the emergency.
But the money that should have gone through to the pay of the second loan went back into the new loan.

I did not keep track of this as I contacted a professional bank and expected a professional service.
The person helping me cancelled the Debit orders on all my old loans
And set up the Direct Debit for the new loan which is for the full amount I borrowed.
I got worried when I started to get notifications that I am in arrears on one of the old loans.
I contacted them immediately and all they were interested is bashing me for the areas so rather than trying to explain it on the phone. I went into the bank but the customer service sucked and was more interested in blaming me for not contacting them in the cooling off period.

Anyway I raised a complaint but since the complaint have not being addressed instead I keep getting reminders to pay the arrears on the loan that should have been paid off with the consolidation loan.

Example
Old loans
loan 1.) Balance £9000 monthly repayment 60 X £200
Loan 2.) Balance £17000 monthly repayment 60 X £430

Consolidated loan £30 000.00 Payment 60 X £600
After they made the mistake I am left with the following

Old loan
loan 1.) Balance £9000 monthly repayment 60 X £200

Consolidated loan £30 000.00 Payment 60 X £600 with a balance £21000.00 so T the end I will actually be in credit.
1st, debit order have gone off for £600 on the consolidated loan
So it is obvious that instead of paying off the old loan she dumped the money back into my consolidated loan.

What is my legal right here can I refuse to pay the arrears until they resolve the complaint and pay of the old loan the way they were supposed too
The old loan is now two payments in arrears and they are demanding payment but they haven't even progressed with my complaint.

Thanks for any advice and help here

meer53

Who are the loans with ? Did you get settlement figures for both loans prior to paying them off ? Is the loan that hasn't been paid off with a different bank to the consolidation loan ?
You would never be in credit at the end of a loan term.
Cancelling direct debits should never be done until you've had confirmation the loan is repaid in full.
You should contact both loan providers and find out how much is owed in each loan and how much it is to repay them.

Your legal rights are that you owe money, you need to repay it. If there has been an error, make a formal complaint.

Gedrog

Thanks Meer53
All three loans are with the same bank, I am not sure how much information on banks we are allowed to give out but it is one of our Big Banks.
I had settlement figures on both old loans and confirmed them with the clerk as both the old loans were with them
The Direct Debits was cancelled by their bank clerk not me as the clerk assured me that both the old loans were now paid off. And she set up the Direct debit on the new loan

The reason I say that I will be in credit is that I will now pay interest and payments on a £30000 loan for 60 months But it only has a balance of £21000 so before the 60 month period will be finished I would have paid of the loan at the current rate.plus pay early repayment charges.
I have raised a formal complaint for them to resolve this

jonesMUFCforever

OP they will sort this out for you - just give them a chance to investigate your complaint.
Should be a xmas box in compo as well IMO.

Gedrog

Thanks Jones

My only concern is my legal right not to continue paying on the loan that should have been paid off.
I don't want to be in trouble and cause myself further issues by not paying the arrears which I feel is their fault for not doing as requested.

What really upset me is the whole customer service experience, I got treated as if it was my fault even though I have been a loyal customer of Barclays for years and never caused them any reason for concern, I had to insist that they file a complaint

jonesMUFCforever

At the moment don't stop paying.
If this is causing you financial difficulty then include this in your complaint.