Help with bank loan difficulties

[Sweetcheeks]

Hi everyone, Can anyone tell me please when you have a bank loan and get into difficulties with the repayments can they close your loan account and transfer the outstanding balance to your current account and make you severely overdrawn and then charge you interest for the pleasure.

[jon1965]

Re: Help with bank loan difficulties

Hi
To be honest I have no idea.
I know that they can use the right of offset , so that if you have money in your current account they can take it to pay off your loan.
My gut feeling is no they can't and I would be putting in a complaint to the bank however without knowing the details I could not comment any further.

I know you don't want to go down the DRO route but unless there are very good reasons not to it might be worth considering.
Have you talked to national debt line?

[Sweetcheeks]

Re: Help with bank loan difficulties

Hi Jon 1965, what happened was I had a loan and current account at the same bank, coudn't keep up full payments, sick money got paid in they grabbed it all to pay loan told them was in difficulties and said to pay a token payment of £1 until I got better, so I did and I also stopped my money going into bank account. Everything going fine then got a statement for loan said SETTLED well I thought Christmas had come early then a couple of months later I got my bank account statement WEll GOB SMACKED OR WHAT they had only transferred the loan balance into my current account and were charging O/D fees daily interest and whatever else the XXXXXXXX it was racking up between £70/90 per day that went on for about 12 months or so before I finally got them to freeze it. Surely they can't charge interest on the loan then interest again. CAN THEY? What do you think. Any suggestions? Or by the way there was no PPI because they new I was sick and on a limited income when they gave me the loan

[jon1965]

Re: Help with bank loan difficulties

I really must pass on this one as I do not have the knowledge or skill. Maybe charity or Cel when she is back may be able to help

[leclerc]

Re: Help with bank loan difficulties

Sweetcheeks, any PPI?

You said you went overseas for 12 months. Did you know that you had difficulties paying it? Who was looking after your post when you were away? Did you ever contact the bank because you could not pay? Did you have any other means of paying the loan?

Apologies but not around as much as I would like but the above questions are things that it would be interesting to see the response to.....

[Sweetcheeks]

Re: Help with bank loan difficulties

Hi Leclerc, Sorry but I think you have sent me a reply to someone else's post

[charitynjw]

Re: Help with bank loan difficulties

Hi Leclerc, Sorry but I think you have sent me a reply to someone else's post

Thank goodness I'm not the only one that get's it wrong, lol

[leclerc]

Re: Help with bank loan difficulties

Hi Leclerc, Sorry but I think you have sent me a reply to someone else's post

A complete misread :o. Read "went on for about 12 months" as "went abroad for 12 months".... I think I need a lie down

2nd attempt at reading the post: did the bank send you anything stating that they would do this? Have they said that they did send something and to which address?

[Sweetcheeks]

Re: Help with bank loan difficulties

Hi Leclerc. Thanks for your reply. No they did NOT advice me and nothing in the paperwork they gave me to say they did but that was in 2010 should SAR them again. I only found out when I got my annual statement what they had done. Prior to this I informed them I was struggling but I was still making the contractual payments No payment plan was in place and NO DF Notice had been served. I can't understand why they done this if I am already struggling to pay why rack up charges this is what is on the statement Loan account settled. Current Account in funds adjustment £9476.65 O/D debit interest £7.15. Service charge. £10 DAILY EXCESS charge ££73.50. That went on for 10months until I managed to get the interest frozen and set up a new payment plan. Through illness I was'nt on top of things Think I've been fleeced. WHAT'S YOUR VERDICT?

[FlamingParrot]

Re: Help with bank loan difficulties

Hi Leclerc. Thanks for your reply. No they did NOT advice me and nothing in the paperwork they gave me to say they did but that was in 2010 should SAR them again. I only found out when I got my annual statement what they had done. Prior to this I informed them I was struggling but I was still making the contractual payments No payment plan was in place and NO DF Notice had been served. I can't understand why they done this if I am already struggling to pay why rack up charges this is what is on the statement Loan account settled. Current Account in funds adjustment £9476.65 O/D debit interest £7.15. Service charge. £10 DAILY EXCESS charge ££73.50. That went on for 10months until I managed to get the interest frozen and set up a new payment plan. Through illness I was'nt on top of things Think I've been fleeced. WHAT'S YOUR VERDICT?

You have, indeed, been fleeced!!! :scared: :scared:

Banks can set off against funds held with them in your current account or any other accounts such as savings, etc. you have with them but they can only set off against YOUR OWN money, not an overdraft, which is still the bank's money! I should think this is definitely the subject for a complaint to the FOS, but you'll need to start by complaining to the bank first: http://www.financial-ombudsman.org.u...complaints.htm

[Sweetcheeks]

Re: Help with bank loan difficulties

Hiya FlamingParrot, Thanks for your reply. Hey at last someone who thinks the same as me. I have queried this with the bank and all the debt advice places and they all said they could do this (think they thought I had money in the bank or I was jumbled up) the balance on my C/Account was NIL . I stopped my sickness benefit being paid into bank the only money that I put in there was for the loan payments then they transferred my loan into my C/Acc and made me O/D. The thing is they have now sold the account on. I was told the payment arrangement was still in placed and continue paying the DCA as usual and all queries were to be done through them as well, I sent a CCA request on the 19th June 13 and have receive a reply on the 26th June 13 returning my £1 and said our file has now been closed and any further queries contact their client directly. Well I did phone them and the bank because can you believe this, 1st the original default had dropped off my file in 2009 then they slapped it straight back on again,
I fought vigorously until Dec 2010 when they finally agreed it was an error and removed it. Then in March 2013 here it's back on my file I told them get it off asap it should not be on there Anyway after numerous phone calls they finally agreed and I also told them that a CCA request was on its way to them dated 1st July 2013 and they then said it was to much hassle and they would be returning my account back to the bank. So at the moment I don't know where I stand or with who.Don't know what to do for the best at present ANY SUGGESTIONS PLEASE?
Apologies for being long winded about this

[leclerc]

Re: Help with bank loan difficulties

Hiya FlamingParrot, Thanks for your reply. Hey at last someone who thinks the same as me. I have queried this with the bank and all the debt advice places and they all said they could do this (think they thought I had money in the bank or I was jumbled up) the balance on my C/Account was NIL . I stopped my sickness benefit being paid into bank the only money that I put in there was for the loan payments then they transferred my loan into my C/Acc and made me O/D. The thing is they have now sold the account on. I was told the payment arrangement was still in placed and continue paying the DCA as usual and all queries were to be done through them as well, I sent a CCA request on the 19th June 13 and have receive a reply on the 26th June 13 returning my £1 and said our file has now been closed and any further queries contact their client directly. Well I did phone them and the bank because can you believe this, 1st the original default had dropped off my file in 2009 then they slapped it straight back on again,
I fought vigorously until Dec 2010 when they finally agreed it was an error and removed it. Then in March 2013 here it's back on my file I told them get it off asap it should not be on there Anyway after numerous phone calls they finally agreed and I also told them that a CCA request was on its way to them dated 1st July 2013 and they then said it was to much hassle and they would be returning my account back to the bank. So at the moment I don't know where I stand or with who.Don't know what to do for the best at present ANY SUGGESTIONS PLEASE?
Apologies for being long winded about this

when you complained to the debt people did they actually say that they thought it fair to offset a loan and create an unauthorised overdraft as well?
If the account was your main account then they have created financial hardship under the lending code and even if they have not then they still need to inform you otherwise they are not playing fairly.

[Sweetcheeks]

Re: Help with bank loan difficulties

Hi leclerc, thanks for your reply. Yes I was told that they could do this and WHAT WAS MY PROBLEM it was still my debt regardless and it did't matter if it was classed as a loan or an overdraft. yes this was my main account at the time and no matter how much I complained it just fell on deaf ears.

[leclerc]

Re: Help with bank loan difficulties

Hi leclerc, thanks for your reply. Yes I was told that they could do this and WHAT WAS MY PROBLEM it was still my debt regardless and it did't matter if it was classed as a loan or an overdraft. yes this was my main account at the time and no matter how much I complained it just fell on deaf ears.

Section 9 of the lending code would have shut them up

[FlamingParrot]

Re: Help with bank loan difficulties

Hiya FlamingParrot, Thanks for your reply. Hey at last someone who thinks the same as me. I have queried this with the bank and all the debt advice places and they all said they could do this (think they thought I had money in the bank or I was jumbled up) the balance on my C/Account was NIL .

What sort of debt advice places are you referring to? Because the right to offset only applies to your own funds, not the bank's funds as would be an O/D.

I stopped my sickness benefit being paid into bank the only money that I put in there was for the loan payments then they transferred my loan into my C/Acc and made me O/D. The thing is they have now sold the account on. I was told the payment arrangement was still in placed and continue paying the DCA as usual and all queries were to be done through them as well, I sent a CCA request on the 19th June 13 and have receive a reply on the 26th June 13 returning my £1 and said our file has now been closed and any further queries contact their client directly.

WHO did you send the CCA request to and what did you quote? i.e. did you quote the LOAN account number? They could reject your CCA request on the basis that the loan no longer has an outstanding balance if the loan was 'paid off' when it was turned into an O/D, but in that case they would say so, rather than the file is closed... :confused2: :noidea:

Well I did phone them

Not a very wise idea, best to keep it all in writing. :typing:

and the bank because can you believe this, 1st the original default had dropped off my file in 2009 then they slapped it straight back on again,

When did you default on this loan? Because for it to have DROPPED OFF in 2009, you'd have to default in 2003... :confused2:

I fought vigorously until Dec 2010 when they finally agreed it was an error and removed it. Then in March 2013 here it's back on my file I told them get it off asap it should not be on there Anyway after numerous phone calls they finally agreed and I also told them that a CCA request was on its way to them dated 1st July 2013 and they then said it was to much hassle and they would be returning my account back to the bank. So at the moment I don't know where I stand or with who.Don't know what to do for the best at present ANY SUGGESTIONS PLEASE?
Apologies for being long winded about this

You say above you sent a CCA request on June 19th, which one was it?