Loan Agreement Signed, Money Transferred Then Declined

Gee10

I applied for a home improvement loan online, the loan was agreed and I was notified after the final checks were completed the loan would be paid into my account within a few working days.  The loan was paid into my account and I received a letter (dated 01 May 2020) telling me the money has gone in, they have signed the Loan Agreement, thanking me for choosing to take a loan with them and that they were pleased to have been able to help.  

However, about three days later, I received another letter (dated 04 May) from them titled 'About Your Loan Application' thanking me for my application but informing me that unfortunately they have been unable to offer me a loan at this time.

When I rang them the guy said this is the first time he has seen anything like this because on his system the same conflicting advice appears, so he has escalated it up for investigation but has informed me that the money may have to be repaid in full?  I told him that I am due to have building work started but he couldn't really advise as he'd never dealt with this before. Has anyone any experience of this ?

 

[Deleted User]

Keep hold of the funds for now. It's probably an admin error but play it safe in case it gets recalled.

Gee10

Thanks -what are the reasons normally for recall?

sassy_one

Finally checks failing

Gee10

Do final checks not take place before funds are transferred- this is what was said online when I applied?

Shakin_Steve

The technical term for it is a balls-up.

DCFC79

Gee10 said:

Do final checks not take place before funds are transferred- this is what was said online when I applied?

Do as suggested and keep the money in an account, you could ring them or use old fashioned pen and paper to ask if the letter was sent in error, you could try the secure message option if available.

MinuteNoodles

As above. In pretty much all finance agreements there's a clause stating they can ask for repayment in full.

zippygeorgeandben

Do not be tempted to spend the money.

xlnc99

i believe after 14 days you are allowed to spend it and they cant reclaim it. I maybe wrong

fwor

xlnc99 said:

i believe after 14 days you are allowed to spend it and they cant reclaim it. I maybe wrong

That's a classic piece of advice. Yes! You can spend it! Spend, spend, spend! You won't even need to repay it.

Oh wait, perhaps I've got that wrong and the rule is that after 14 days you are NOT allowed to spend it. Easy mistake to make - I get that bit mixed up all the time....