Loan Not Settled Due to 'Technical Error' of Company

Zosie1992

Hi all,

Coming out of the woodwork after a stressful day.

I took out a personal loan towards the end of the last year. This summer I returned to university as a Postgraduate student, and the Bank of Mum and Dad very kindly settled my loan for me using my dad's bonus, to give me a clean slate.

Or so we thought.

This afternoon I received a phone call from the loans company, explaining that on the day I paid the company they had a technical problem with their system, meaning the payment was taken in dollars rather than pounds. After the conversion rate was taken into account, there was actually a shortfall of £400, that they have said I still need to pay.

My dad has gone back and confirmed this with his bank statement (and as a real kicker, also found a £36 charge for using the card to pay in dollars.)

I have until Monday to come up with a way to pay this. I have no stable job - my only income currently is from my student loan. Studying in London means 95% of what I have left after tuition is used up by rent and travel. I am starting a job next week, but that will only just cover my living expenses till my next loan payment in February. Long story short, I don't have £400, won't have any spare money to go towards paying this any time soon, and am extremely annoyed this has even happened. I was told on the phone and in writing that the account was settled.

I've spoken to the financial ombudsman who are investigating on my behalf, but didn't really offer any advice. Do I agree to a payment plan on Monday, or just continue to make really clear to them that I just don't have the money to pay for their mistake?

(And yes, we should have checked the numbers on the bank statements ourselves and picked up on it sooner, but to be honest we didn't even think of it.)

Thanks guys

[Deleted User]

Yes, arrange a payment plan with them. You're not paying for their mistake - just for the outstanding balance.

However, you may want to ask for the forex fee to be refunded/credited. You may also want to remind them they told you the loan was settled, and see if you can get a goodwill gesture.

Bogalot

Did your dad not check his statement, if the money wasn't taken is he no longer willing to use it to help?

I agree about the forex fee being credited against what is owed, but otherwise you need to arrange to pay off what you owe. You were given a settlement amount and you acknowledge that has not been paid.

Zosie1992

Okay, thanks guys. Will scramble a budget together over the weekend