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What happens with a loan when bank closed account?

vtoea · 2020-05-03 22:31:48

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?

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sourcrates Posts: 31,555 Ambassador

4 May 2020 at 9:04PM edited 4 May 2020 at 9:06PM

It’s called bank de-icing, you can repay the loan however you choose, that letter doesn’t cover all the bases, as long as they get the money, they won’t be bothered how it gets to them, new accounts are easy enough to open online, try Monzo/Coop/Nationwide etc.

Obtain their payment details and reference number for the loan, set up payment online once a new account has been sourced.

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What happens with a loan when bank closed account?

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