Consolidation Loan - Screw Up - Could I Justify Requesting Money Back?

darley.wood

Hello - looking for some advice or opinions here -

I recently look out a consolidation loan to clear credit card debt and my overdraft - agreed the amount and the terms all fine.

When it came to the items that needed paying off - they said they have to be paid directly by them to the debtor so i couldnt just get the sum and pay them off myself - ok, fair enough, ill do that which is a bit of a pain as with the age of online banking i could have cleared EVERYTHING within 1 day once funds received.

Anyways - i put together a list of all the debtors and the relevant bank codes/reference numbers and items required and sent it to them. One of them would not allow a bank transfer so only accepted a cheque so i put all details and references for this too and they agreed that yes they can send a cheque.

When it came to payment this process took about two weeks even though it was meant to be a 'same day transfer' and resulted in me calling up numerous times to trace where it was. One of the payments they made they put on the incorrect reference number and bounced back to them. They didnt tell me this - I had to request why it hadnt been paid and pointed out my reference was correct and theirs was not. Also with the cheque - no cheque was being received by dentor. It eventually turned up 3 weeks later....to my home address and made out to the incorrect person.

In this time - I was still making the monthly repayments on my debts AND i had to pay the first instalment of the consolidation loan as the first of the month came round - even though thousands of pounds of the loan had not made it to the correct debtors. I was also charged extra interest in this time spent to sort everything out.

I have opened a complaint procedure with them and after 6 weeks (2 weeks later than their self proclaimed complaints process) i was given a letter saying they did not think they were in the wrong but agreed no one had double checked the reference number. I went back again and pointed out the other errors and they have agreed to give me the interest portion of the debt unpaid - but still say it was 'within their 3 day goal' (which it wasnt) and offered me £30 in vouchers.

I am tempted to request my first monthly payment refunded as i was paying both their loan payment and previous debt payments at the same time due to their errors and was paying a full payment amount for a loan that was not received in full by that date.

Do i have a leg to stand on?

[Deleted User]

The refund of the interest will mean you haven't missed out financially - and the £30 is a little extra.

I think you've done quite well out of it. But you could try escalating it further if you wanted.

darley.wood

Thanks, i know it sounds a bit petty but i do object in having to start paying back a loan when said loan hasnt actually been received in full and I was having to still make payments in the same month for the original debts plus the loan payment. It badly affected my cash flow at the time when what I was really trying to do was lower them!

27cool

What sort of idiotic creditor will not allow payment by direct transfer!! Never heard anything so ridiculous.

-taff

If you're not satisfied you can try the FOS