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Nat West closed loan

A long time ago we held a home improvement loan with Nat West and had some financial difficulties, at this time the Nat West froze our interest for a short while. We then cleared the loan off and were on the impression that was it. We have now been offered some sort of refund for their none compliance and they are trying to say we need to use this to clear the interest that was frozen when the account has been cleared, can anyone help as need to know if they can do this or are we within our rights to fight this and ask for the money to be refunded to us

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