Loan suddenly closed without notice

[Deleted User]

Hi I have a loan for £1482 which has been in arrears for about a year. I have recently been made redundant and offered them a full and final settlement of £500 to clear it. The loan company said they will get back to me on a decision whether to accept or not.

I recently checked my credit score and was surprised to see that the loan has been closed and the amount marked as a default balance. So does this mean I don't have to pay it back? If so I don't understand why they didn't accept the £500 f&f settlement and that the account was closed without me being notified. 

Is it possible this loan company could reopen my account and I could owe them this money again or once it's closed it's closed forever and I no longer owe them this amount 

Thank for any replies

[Deleted User]

It's been marked as default as you have defaulted on the repayments. The loan hasn't been written off, you still need to pay. It will probably be passed to 3rd party debt collectors and/or sold on for collection.

[Deleted User]

Deleted_User said:

It's been marked as default as you have defaulted on the repayments. The loan hasn't been written off, you still need to pay. It will probably be passed to 3rd party debt collectors and/or sold on for collection.

Thanks for replying. The account has been closed though. That's what I don't understand and on my credit report it says my credit rating will improve because of this. If I still have to pay, wouldn't they have just marked it as default rather then close the account?

[Deleted User]

smallie210 said:

Deleted_User said:

It's been marked as default as you have defaulted on the repayments. The loan hasn't been written off, you still need to pay. It will probably be passed to 3rd party debt collectors and/or sold on for collection.

Thanks for replying. The account has been closed though. That's what I don't understand and on my credit report it says my credit rating will improve because of this. If I still have to pay, wouldn't they have just marked it as default rather then close the account?

Does the default balance show as zero or the defaulted amount?

[Deleted User]

Hi the below was taken from credit karma

Account detail

£0

Current balance

Closed

OVERVIEW

Account type

Unsecured Loan

Status

Paid and Closed

Account number

*****************1

Start date

21 Nov 2018

End date

23 Oct 2020

PAYMENT INFORMATION

Opening balance

£4,955

Repayment frequency

Monthly

Default balance

£1,497

Promotional rate
No

sourcrates

I would write and ask for clarification, it could be the debt has been sold, or, they have taken a commercial decision, triggered by your low offer, that they are never going to recover this money from you, and closed the account.
Only they can clarify which it is.