Tweet
My son is going crazy trying to find out what happened on his closed unsecured loan acct. He paid off what they told him was the balance back in March 2016. So, it was showing closed and $0 on his credit report. Now 5 months later, the bank (a credit union) is calling him and threatening to get lawyers after him because he has money from someone else's account! We don't know HOW this happened, but another person somehow put money on my son's loan almost a year ago (Nov 2015) and didn't notice that it wasn't his acct!! Then this guy did it again just a month before my son decided to take college leftover money and pay it off. Well, both deposits were $1000!!! Can't believe NO ONE, not even the person missing the money -- caught the errors until almost a year later!!! So, now they have gone into the loan and reversed these payments - and re-opened this loan account without my son's permission. In the meantime, we were supposed to get called about why and how this happened. No one did. We were also supposed to receive an accounting of what was done when - they did not send him anything until just a couple days ago when a "statement" arrived with the new loan balance! So, after all that, my question is -- can they do that? Can they legally just re-open a closed loan? He had no idea what his real balance should have been when he did the payoff... he's a young man and it comes right out of his checking acct thru EFT. He had no reference for how long it had been happening. He just went in, asked for the payoff amount and he gave them what they asked for!!! No one said a thing then. While we were talking to the collection mgr about this, he was telling me they could sue my son for "unjust gains", but can the bank do that? Or does the person whose money it was that the bank took and applied wrong do that? Isn't it illegal for the bank to give that person my son's name and info? We were hoping they would (the bank) work with us for some amenable solution, but instead they just re-opened the loan without even telling him. Thanks in advance for your thoughts!
Loading...
-
Tags: None -
Re: US law on banks re-opening a closed loan due to their error
Hi and welcome
Sorry to hear of your son's problems, but I fear you have come to e wrong place for advice.
This is a UK based forum, and whist it is possible someone with knowledge of USA banking laws might read your post, it is unlkely.
Do you not have a financial services ombudsman in the states to whom complaint can be made.
You could possibly try these links:
http://www.consumerfinance.gov/cfpb-ombudsman/
http://www.helpwithmybank.gov/compla...complaint.html
Good luck
Comment