Loan cancellation and repayment issue

Janie08 · 15 September 2019 at 4:50PM

Hi there,

I’m looking for some advice on an issue with a 118 loan. I applied for a £1000 loan in 2017 and was approved but cancelled it within two weeks and repaid the amount back. I haven’t been contacted by the company at any point over the last two years - no emails, phone calls or letters. However, a default was added to my credit report last month as 118 are claiming I haven’t returned the £1000. I’ve shown them my bank statement which shows that I paid it back but they are still saying they have no record of this payment and won’t remove the default.

Is there any other way i can prove this has been paid or get them to remove the default?

Any advice is appreciated!

Willing2Learn · 15 September 2019 at 5:01PM

Make an official written complaint to 118 by Royal Mail. Attach a copy of your bank statement that proves repayment of the loan. (Did you receive any written notification that the loan was cancelled within the 14-day cooling off period?) Request that the incorrectly recorded default is removed from all applicable CRA credit files.

If your complaint is not upheld then you could escalate to the ICO and/or FOS.

In the meantime, I would request that your bank does a trace (account number and sort code) on the £1,000 repayment, so that you find out where the funds went.

Edit: And welcome to the forum

Janie08 · 16 September 2019 at 12:48PM

Thanks Willing2learn!

I’ve raised a complaint via email so will follow it up with a written complaint. I did receive a letter to confirm the cancellation but I (stupidly) didn’t keep it as it was two years ago. I’ll reach out to my bank!

Thanks for your help!

Loan cancellation and repayment issue

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