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Bank gave loan to debt agency and deleted all messages about loan!

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  • Bank gave loan to debt agency and deleted all messages about loan!

    Hello Beagles.

    When I was working I took out a loan with my bank. Before it was paid off I took out a second loan and consolidated it with the first loan. I kept up all payments until I lost my job in about the 3rd year of the second loan (which was a 5 year loan).

    I then couldnt pay the loan so the bank agreed to freeze interest and loan repayments until I was in a position to start repayments.

    At some point between losing my job and getting another job, the bank almost wiped out my loan because they refunded me just over £2000 due to what they called a 'banking error' on my loan account. So the loan is only a few hundred pounds now.

    After 2 years i managed to get another job but it was not as well paid as my previous job. As I couldnt afford the loan repayments in full I put a repayment plan to the bank which I stated would include an initial lump sum and weekly payments thereafter. I had a second account with them which was never used so I said I would deposit the lump sum and the weekly amounts into it and if they agreed to the proposal they could then transfer the payments to the loan account (i couldnt make payments direct to the loan account myself). Although there was no written or verbal agreement of my proposal, the bank transferred the initial lump sum and some of the weekly payments to the loan account. As far as I was concerned, that was them agreeing to my proposal.

    Fast forward two months and the bank send letters demanding the loan be repaid in full. I replied saying we have an ongoing repayment plan in place. They said there was no repayment plan in place and that them taking the money as per my proposal was not them agreeing to the proposal; they added, this was not how they do things. As far as I was concerned, it was them agreeing to the proposal as taking the money was only on condition of them accepting the proposal. I just carried on making the payments into the account as per my proposal but they did not transfer anymore to the loan account.

    A month later I check my account online and the loan account has vanished. All the messages regarding the loan account have also vanished (we did all communications about the loan on the banks online messaging facility). I messaged them about the loan account vanishing but no reply.

    A few weeks after that I start receiving letters from a debt recovery agency saying I had missed payments to them and they are now demanding debt be paid in full. They do not say where the debt was from, or when I supposedly agreed a payment plan with them. They just keep sending demand letters. I only twigged it was concerning the loan from my bank as the amount of debt this agency say I owe them is the exact same amount outstanding from my bank loan.

    Although I had no official signed repayment plan with the bank, would there still have been a repayment agreement in place on the grounds that taking the lump sum and further payments from my second account was only on condition of them accepting the proposal? The second account still shows the payments being transferred to the loan account number.

    If there was a repayment plan in place, and payments were being made as per the proposal, can the bank then just wash their hands of it and hand the debt to a debt collection agency?

    Thank you
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