Are banks legally required to provide a settlement figure in writing if requested?

bigjim86
bigjim86 Posts: 6 Forumite
I'm looking to settle a personal loan with the Clydesdale Bank. However, in order to do so, I need to provide someone with a written settlement figure from the bank. The HSBC has agreed to do so for another loan, with the figure being valid for 28 days.

However, the Clydesdale have said that they don't provide settlement letters as they charge the interest daily, so the figure is only valid one the day it is given. This figure can be obtained on the phone or in branch.

Is this legal? I was under the impression that a bank legally had to provide a written figure if requested. Advice appreciated.
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Comments

  • Shakin_Steve
    Shakin_Steve Posts: 2,695
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    It's true what they say, though. Interest is added daily and, by the time you got the letter through the post, the settlement amount would have increased.
    I came into this world with nothing and I've got most of it left.
  • antrobus
    antrobus Posts: 17,386 Forumite
    97 Duty to give information.

    (1)The creditor under a regulated consumer credit agreement, within the prescribed period after he has received a request to that effect from the debtor, shall give the debtor a statement in the prescribed form indicating, according to the information to which it is practicable for him to refer, the amount of the payment required to discharge the debtor’s indebtedness under the agreement, together with the prescribed particulars showing how the amount is arrived at.

    (2)Subsection (1) does not apply to a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

    A request under subsection (1) need not be in writing unless the agreement is secured on land.


    Consumer Credit Act 1974
    https://www.legislation.gov.uk/ukpga/1974/39/section/97

    I suppose "a statement in the prescribed form" might imply something 'in writing', but it might equally well cover a printout of the account balance.

    I'd guess the question would be, who is this 'someone' who needs a written settlement figure, and why do they want it?
  • Shakin_Steve
    Shakin_Steve Posts: 2,695
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    It also says that a statement under subsection 1 need not be in writing.
    I came into this world with nothing and I've got most of it left.
  • sourcrates
    sourcrates Posts: 28,711
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    antrobus wrote: »
    97 Duty to give information.

    (1)The creditor under a regulated consumer credit agreement, within the prescribed period after he has received a request to that effect from the debtor, shall give the debtor a statement in the prescribed form indicating, according to the information to which it is practicable for him to refer, the amount of the payment required to discharge the debtor’s indebtedness under the agreement, together with the prescribed particulars showing how the amount is arrived at.

    (2)Subsection (1) does not apply to a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

    A request under subsection (1) need not be in writing unless the agreement is secured on land.


    Consumer Credit Act 1974
    https://www.legislation.gov.uk/ukpga/1974/39/section/97

    I suppose "a statement in the prescribed form" might imply something 'in writing', but it might equally well cover a printout of the account balance.

    I'd guess the question would be, who is this 'someone' who needs a written settlement figure, and why do they want it?

    Section 97 CCA is legislation covering the provision of statements, nothing whatsoever to do with loan settlement figures.

    OP your loan is governed by the terms and conditions outlined in your consumer credit agreement.

    I would say refer to that first and foremost.
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  • If you want to pay the loan off what does it matter?
    Ask for the figure - pay it - then congratulate yourself for paying it off?
  • Nebulous2
    Nebulous2 Posts: 5,072
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    I was a long-term Clydesdale Bank customer, took a loan and had great difficulty in both overpaying and paying it off early. I overpaid directly to the account at one point and they sent the payment back to my current account. I complained, they ignored me for several months, at which point I went to the ombudsman.

    Clydesdale then sprang into action asked for more time to resolve it, provided a manual process to pay it off by phone, and offered me £350 compensation.

    The ombudsman said that was more than they would have recommended as compensation.

    It sounds as though their systems still aren't any better than they were then, about 3 years ago. They ultimately lost me after over 30 years with them.
  • I assume that Clydesdale are not proposing to charge any additional interest beyond the settlement date if they can't give you a settlement figure that is valid for more than 1 day.

    As Antrobus asked, why do you need a written figure and who do you propose to provide it to?
  • obay
    obay Posts: 570 Forumite
    I've used these for around 3 loans (all paid off but 1) and every time I've phoned up they have gave me the figure on the phone, gave me the option to pay it off, they have written a letter to me on each occasion.
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
    11/11/18 - £142,074.00
    Barclays Car (5.99%)£0/£8,832.37
  • Herzlos
    Herzlos Posts: 14,662
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    Is the written statement to be handed to some other loan provider? Or is a friend/family member paying the balance?


    In either case, getting the statement valid on the day it's generated and using that should be sufficient. You can always calculate the daily charge and note it, or just deal with the discrepancy yourself (it'll likely be under £1/day unless it's a high APR or a huge balance).
  • TBagpuss
    TBagpuss Posts: 11,198
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    It's true what they say, though. Interest is added daily and, by the time you got the letter through the post, the settlement amount would have increased.

    That's not difficult to address, though.

    They can issue a statement which says "settlement figure is £9,999 on 10th October, interest will accrue at a daily rate of £2.50" - or whatever the numbers are. It's what you see on mortgage redemption statements.

    I would suggest that you look at your loan agreement.

    You can also ask them to provide a letter which explicitly states the date on which is is valid, and you can then work out the interest yourself.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
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