i recieved a loan i didnt ask for,

alfie10

3 months ago i had 2 loans, one at 12k and one at 5k, i was advised to consolidate them, so i did so, leaving me with a total loan of 17k,

i later checked my account and found out i had been givin another 5k loan and had allready made a payment on the loan,(i have to admit at this stage, i very rarely check my bank account, and should check it a lot more often) as soon as i saw this loan i phoned the bank up and offered to pay it back, the bank admitted it was a admin error, but said i still had to pay interest on the loan, which i refused, they then took another payment out so i cancelled the direct debit, with the 2 payments i have made, i owe them 4,064.48p, but the bank say i owe them 4,375.00p,

i am refusing to pay interest on a loan i never asked for,


does anyone know where i stand in this situation?

also, i have moved out of the house the loan was addressed too, but havent moved into my new house yet, i have let the bank know this, and they want my current address , but i havent got one(im stopping with friends)

i phoned the bank several times and i get nowhere,they always say some one from complaints will phone me back, but they never do,i have now had the loan(that i dont want) for 3 months!!!!!


can anyone give me any advise please


many thanks


Alfie

dmg24

What did you sign for? You need to check your paperwork.

alfie10

i only signed for the consolidated loan of 17k

dmg24

In that case, ask them for proof of when you agreed to this loan. Put it in writing, send it Recorded Delivery etc.

With regard to your address, give them one that you know you will be able to regularly collect your mail from.

Let us know how you get on x

PasturesNew

Where is the money then?
Where is this loan money that you didn't ask for?
Presumably if a loan exists - the money is somewhere.

Who has the money?

Update
I read your original posting ... so the money is in your account, which you spotted when you checked your account?

And they said it's an admin error.

They can sling their hook then.

alfie10

hi,


the loan money is in my bank account,

the loan company has admitted it was a admin error, but they say i have got to pay interest because i didnt pay it back strait away





cheers for the help

geordie_joe

IMO if they made a mistake then they can't make you pay for it. You must either keep the money and make the payments as per the agreement or give back the money.

However, I would not give back the money until I had it in writing I would not be charged interest.

If it got to court I doubt a judge would look kindly on them trying to charge you interest on a loan they gave you by mistake.

alfie10

the worry i have is it will start to show up on my credit rating,

dmg24

In the short term it will impact on your credit rating. However, once the bank have sorted out their mess the missing payments on your report will be removed.

alfie10

cheers dmg

alfie10

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Quote:
Also write to the financial offbudsman, if they admit its an admit error then you should have to pay a thing.
You cannot go to the FOS until your have excercised the complaints proceedure of the bank and reached deadlock.

Questions that immediatly come to mind are:

1 - Where is this extra £5k. Where did it go?
2 - Is it really an extra 5k or has the bank front loaded the interest on the balance (is the 5k an exact 5k would answer that as front loaded interest would be highly unlikely to be a round £5k)?
3 - If you are not satisfied, make sure you take the complaint to their customer relations and not at branch level.
4 - ask them to supply the signed agreements for the lending

Dont jump to any conclusions and dont be rude to the people handling the complaint. Give them a chance to resolve it or inform you of what has happened first. Going off all guns blazing to start with will not make the complaints handler sympathetic to your position.

The bank may not have returned your call yet because the telephone and address they hold for you is not valid.



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Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
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