What happens with a loan when bank closed account?

vtoea

What happens with a loan when the bank closes the account?
Are they supposed to chase you to ask you to provide repayments alternatives or is the account holder responsibility?
Also what if the loan status changes to settled?

george9071

So are you saying your loan has been closed? If so did you repay it fully? And if it does then it means it is payed off and sorted but contact the bank to be sure, what bank is this? As there is a lot of account being closed for no reason at the minute.

vtoea

george9071 said:

So are you saying your loan has been closed? If so did you repay it fully? And if it does then it means it is payed off and sorted but contact the bank to be sure, what bank is this? As there is a lot of account being closed for no reason at the minute.

Natwest bank and no loan wasn't paid in full I wonder if it changes status to settled on my next credit report do I have to chase them or they have to chase their money?

george9071

NatWest have been known for closing a lot of accounts recently have you received a letter from them yet?, if I was you I would get in touch with them ASAP and get a repayment plan set up to avoid negative impact on your credit file.

cymruchris

I'm a bit confused here - which account has been closed? Do you mean the loan account? Or your current account? If they've closed your current account for an investigation or something linked to anti money laundering or something like that - that won't automatically wipe out your debt. Your loan will be a separate issue. You'll need to get in touch with them to arrange payments from another source. Do you have another current account already running?

[Deleted User]

There seems to be something odd going on with NatWest at the moment.  No one hear can give you any insight into what is going on with NatWest at the moment but by all accounts you are not the only one experiencing issues with NatWest.

https://forums.moneysavingexpert.com/discussion/6135897/natwest-closed-my-account/p1

george9071

Lover_of_Lycra said:

There seems to be something odd going on with NatWest at the moment.  No one hear can give you any insight into what is going on with NatWest at the moment but by all accounts you are not the only one experiencing issues with NatWest.

https://forums.moneysavingexpert.com/discussion/6135897/natwest-closed-my-account/p1

Same thing happened to my current account and credit card with them just closed down I have been through the transactions with a fine tooth comb and there is nothing that grants account closure, bit of advice to anyone avoid them for the time being. Maybe they will improve.

[Deleted User]

The person that has their name on a loan has the responsibility of ensuring it still gets paid.
 
Just because an account is closed doesn't mean your responsibility stops; you will get your paperwork in order and you will make arrangements to set up Direct Debits to continue repaying what you owe.

Yes, it is you that does this task, in the banking and money world you do the work once the banking company has lent you the money. 

It is your hard earned money that repays what you have borrowed from the bank, all responsibilities lie with you.

jimbo6977

<sarc>Surely a bank wouldn't want to receive any funds from a fraudster?</sarc>

sourcrates

vtoea said:

george9071 said:

So are you saying your loan has been closed? If so did you repay it fully? And if it does then it means it is payed off and sorted but contact the bank to be sure, what bank is this? As there is a lot of account being closed for no reason at the minute.

Natwest bank and no loan wasn't paid in full I wonder if it changes status to settled on my next credit report do I have to chase them or they have to chase their money?

Hi,

Ignore the moral aspect of this, the banking system operates on a profit/loss basis, nothing more.

Some banks, and Natwest in particular, are doing a lot of this just now, and it could be for a number of reasons, if you Google "banks de-icing" it may or may not be relevant to you, they may just be performing a spring clean of their loan books, and decided they no longer want you as a customer, it happens a lot, and your agreement with them allows either party to do this at any time.

Anyway, you don`t have to do anything just yet, i`m sure they will write to you in due course.

vtoea

I spoke with account closure team and they said sorry you have to setup a standing order from another bank and she closed the phone on me while on the letter it clearly states that repayment of the loan to be done by Direct Debit only.
Do paying a standing order into a closed account even work?
Also on the letter it  says 7 days notice but I can't access the account anymore.