Credit Union mess up

Gemsie666

Good evening, I’m really looking forward to some advice. 

About 5 years ago I took out a loan with my credit union I do regular savings with them for the last 15 years so would occasionally take out the odd loan. For this one all paperwork was sent out including payroll for funds. 

Last August I contacted them to ask if the loan was paid off or if there was still a balance, this was due to me getting a mortgage. I was advised I had paid off the loan and had £1800 in savings, I took out the funds to go towards the house. 

I contacted them again in October as I have continued to pay £50 into the account, so wanted to withdraw this to pay for a holiday. I received an email back saying there had been an error and that I didn’t have any money in savings as the loan wasn’t paid off. 

I have asked for clarification around this and they have advised that the payroll request went in late, so I had not paid the loan off when the funds were originally released to me and that I still owed money on the loan. They report they have taken off any additional interest due to the error. Apparently, this was not picked up until this went over to a new company that took over our Credit union, though they didn’t contact me. 

This has now left me in a pickle, those funds were to pay for a holiday, so I’m now struggling to find the funds to pay for this. Is this right that a year later they can say it isn’t paid off? Everything comes out of payroll, so I haven’t avoid not making payments it’s all been above board. 

Can I do anything?