Loan "Fully paid and closed" - then they demand more money!

edited 30 November -1 at 1:00AM in Loans
4 replies 949 views
Orinoco_2Orinoco_2 Forumite
1 Post
edited 30 November -1 at 1:00AM in Loans
Hi, I took a loan out in February with a High Street lender who was offering the most competitive interest rates at the time. I applied for £5000 and took their same day transfer service at a cost of £35.

In March I unexpectedly found that I was able to repay the loan. I rang for a redemption figure on 22nd, and was advised £5098.94. I thought this was high and asked for a full breakdown, and so the member of staff went away to check, and came back and told me that as the first direct debit had not been claimed, I could cancel the loan by sending the full amount back plus the £35 transfer fee.

I did this, and received a letter on 31st March stating it had been"fully paid and closed in our files".

However I received a letter dated 16th May stating that my loan had not been settled in full and I needed to send a futher £63.94 before 6 June 2006. I wrote and disputed this, and again asked for a full breakdown.

I have had no response to this letter, but today received a settlement statement saying I now need to pay £102.59 to clear the loan. I telephoned the lender to complain, only to be told that I need to write to a certain individual "who is actually a real person" implying that the person I wrote to previously was not!!

Help!! Can they do this? What can I do?



  • mafordukmaforduk Forumite
    625 Posts
    If you have Written confirmation of the loan being paid and settled in Full then No, they cannot do this.
    If they continue, ask them if they are regulated by the FSA (Financial Services Authority). If they are then get intouch with the FSA. If they are not tell them that you have written confirmation of the loan condition and that you will not pay them any money and that if they keep persueing you will speak to the police or take them to court.
    Hope that helps.

    p.s. You can always get advise from CAB (Citizens Advice Bureau) also about taking them to court etc.
  • RafterRafter Forumite
    3.8K Posts
    More than likely you have to pay a 1 month penalty for early settlement.

    Does sound as if they are in the wrong though and if they claim you have 'settled in full' it is a bit late now to demand the penalty, regardless of whether or not they forgot to apply any early settlement penalty.

    Smile :), it makes people wonder what you have been up to.
  • seanparkinseanparkin Forumite
    579 Posts
    Tell them to shove it. They obviously previously accepted closure and admitted you owe them no further money, just make sure you've got your hands on that letter confirming so.

    I personally would send them a bill for wasting your time as well.
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  • cjm2508_2cjm2508_2 Forumite
    7 Posts
    Normally when a bank offers a settlement quotation which is honoured within it's valid period (check this is the case, it's normally 30 days) they can't then request additional funds - if they are trying to do so, and acknowledging you know this, I think you need to find out why. Incidentally, the FSA won't enteratin a complaint unless you've reached a point of no resolution with the bank's internal processes. I'd suggest complaining and complaining - they will give in rather than have you complain to the FSA, you just need to make it clear you will pursue this. Good luck!!
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