Settlement figure error

Rednaz90

I am looking for some advice,

I had a loan that I asked for a full and final settlement on. I received the letter confirming the settlement amount and I paid the amount the same day. 

7 months later I have received an email from the lender advising me my account is in arrears. I explained to them I had paid the settlement and also sent them a copy of the letter they sent me.

They have now said they made an error calculating the settlement and require me to pay the outstanding amount. 

I have met their terms as per their settlement letter so as far as I am aware the matter is closed.

Do I have to pay the outstanding balance or would I be better fighting it?

Thanks in advance for any responses

MorningcoffeeIV

If an error was made, it can be rectified.

You need to meet the terms of the agreement. That isn't overridden by a mistake in a letter.

Keep_pedalling

If it had been the other way round I am sure you would have wanted ten to pay back any overpayment. You should not be charged any interest for their mistake but the capital needs to be payed back.

Was this a big error you would struggle to pay in one go?

Rednaz90

Thanks for the responses. I would probably struggle to pay the remaining settlement in one go so I will contact them to come to an agreement. 

Thanks again

retiredbanker1

Rednaz a very grown up and sensible approach if you don't mind me saying so.

Exodi

It sounds like a big error (as in, not a case of them forgetting to add a couple of quid in interest between the last statement and the calculation - but more a case of them missing a zero).

Keep_pedalling said:

Was this a big error you would struggle to pay in one go?

Rednaz90 said:

Thanks for the responses. I would probably struggle to pay the remaining settlement in one go so I will contact them to come to an agreement. 

Good for you. While I usually would have suggested challenging it, if it was obvious there was an error based on the amount, then I don't think it would do you any favours to end up in court trying to pretend that you genuinely believed a F&F of £50 was reasonable for a £1,000 debt.

I would however insist that no interest or charges are included in the difference between your payment and any alleged arrears.

Grumpy_chap

Exodi said:

I would however insist that no interest or charges are included in the difference between your payment and any alleged arrears.

And also that no report of default is submitted to any of the credit reference agencies.