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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
    Tags: None

  • #2
    After a month break from demand letters the debt company have now sent me a letter asking me to set up a repayment plan for the debt, which they now confirm is the loan I had with my bank. This at least acknowledges I had no plan in place with the debt company and therefore could not be in arrears with them.

    Back to my original post; did the bank accept my repayment plan by taking the money from my account as per my proposal? And if that constitutes an agreement between me and the bank, have the bank then breached that agreement by handing my debt over to a debt collection agency despite me keeping up the payments as per my proposal?

    Comment


    • #3
      I think you need to do a Subject access request to your bank to find out what happened to this. Even if they removed the account from your online access the information will still be held somewhere. There's a letter example here Subject Access Request Letter but most banks now have something regarding GDPR and obtaining your data in their privacy policy pages on their websites which will be simpler and quicker to submit.

      This debt collection company - are they acting on behalf of the bank or have they purchased the debt ? Have you received any notice of assignment ?
      “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

      Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

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      Comment


      • #4
        Originally posted by Amethyst View Post
        I think you need to do a Subject access request to your bank to find out what happened to this. Even if they removed the account from your online access the information will still be held somewhere. There's a letter example here Subject Access Request Letter but most banks now have something regarding GDPR and obtaining your data in their privacy policy pages on their websites which will be simpler and quicker to submit.

        This debt collection company - are they acting on behalf of the bank or have they purchased the debt ? Have you received any notice of assignment ?
        I dont know if they bought the debt or not. I dont know what a notice of assignment is. I received a letter from the bank demanding payment in full (would that be the notice of assignment?), i contacted them saying we had an ongoing payment plan in place, they said there was no plan in place. Never heard anything back and thats when the loan account and all messages vanished.

        I will send them a subject access request letter and see what happens. Even if i get all the messages back, the bank still maintain there was no payment plan in place.

        Comment


        • #5
          Who is the debt collection company and bank ? If it's some one like Lowell/ Hoist / Cabot then they'll have bought the debt, if it's say, Moorcroft, then they'll be acting on behalf of the bank. Who is reporting on your credit file ? And are you still making the payments you arranged with the bank ?
          “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

          Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

          Received a Court Claim? Read >>>>> First Steps

          If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

          Find Solicitors offering fixed fees on our sister site - JustBeagle.com

          Comment


          • #6
            Originally posted by Amethyst View Post
            Who is the debt collection company and bank ? If it's some one like Lowell/ Hoist / Cabot then they'll have bought the debt, if it's say, Moorcroft, then they'll be acting on behalf of the bank. Who is reporting on your credit file ? And are you still making the payments you arranged with the bank ?
            The bank is Smile, theyre part of the Co-Op bank. The debt company is called Link or Link Financial. I carried on making the payments until I received letters from the debt company. Saw no reason to after that as there was no longer an account for the bank to transfer my payments into and it seemed they had already given the debt to someone else.

            No idea about my credit file as ive not signed up to any of them.


            Just signed up for experian and only searches showing up are car insurance quotes. No one else seems to have looked at it. The loan is not mentioned anywhere on it although my bank is.
            Last edited by NotSmiling; 9th October 2019, 11:17:AM.

            Comment

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