Paid off Loan Early

Monty_UK

Hi - looking for some advice. I recently paid off a loan and it is settled in full - the lender is hounding my for info on earnings, where the settlement money came from etc but I dont believe the answers to their questions are any of their business - never ever had them before 

Salary/Income - 

• Was the full amount from one month’s salary?

 

Savings - 

• Did you have savings before the agreement? How Much? 

• How much do you earn each month?

• What is your DMI? (Disposable Monthly Income)

• How much did you save each month?

 

 

If we have not received sufficient information, we will continue our communications with yourself ensuring all diligence has taken place in line with our Regulations and Procedures. These checks are carried out by our Financial Crime Team and if we require more information then, we will communicate with yourself directly until we gain clarity on all aspects outlined above.

 

We would be looking to receive this information within the next 3 working days and then we can update your account accordingly. In the event we do not receive sufficient evidence based on the source of funds outlined by yourself we may choose to hold or return these funds to the account in which they originated until we can obtain sufficient information.

Please advice if they can open the loan again and charge me interest 

Thanks

elsien

It’s not about charging you interest, they will be more concerned about money laundering which has implications for them if they don’t carry out proper checks. They have an obligation to satisfy themselves as the source of the funds. 

It will be much easier to simply explain how you now have the money to pay off the loan which you didn’t have before. 

CliveOfIndia

As above, Anti Money Laundering rules are very strict, and banks face severe penalties if they do not carry out due diligence.  Admittedly this particular scenario does sound slightly unusual - but they're not doing anything wrong, it's probably more a case of being seen to abide by the regulations.

Just give them the information they're asking for and move on.

Monty_UK

I have already provided them with details of where the money came from on two occasions - both times the calls were recorded 

Brie

If you have already provided the information is there any chance that this is simply a computer generated letter that was already in progress when you talked on the phone?  

Whatever the situation I would definitely contact them and ask the bank if you actually need to provide anything else.  Do they need it in writing/by email rather than over the phone?  Copies of payslips??  Take notes on the call about what they say needs doing next, timescale allowed, who, when, number rung.  Just in case they come back with something else or return the money after saying they won't.

retiredbanker1

If you don't get this sorted out now - I bet you will find it difficult to get credit in the future because they will put information about you on Cifas.