Refund for interest and default charges.

[Natalie1]

Hi. My bank charged me interest and default charges of over £2,000 on my loan when they shouldn't have. They have admitted this in a letter. Instead of refunding this money as credit into my account, they decided to reduce my loan balance by the same amount. This is good because it has now put my loan repayments in front by over 18 months. The thing is I would rather they had credited my account and let me decide what I used the money for. Is reducing a customers loan the way things have to be done or can I ask for the money to be credited to my account?

[nemesis45]

Re: Refund for interest and default charges.

Hi. My bank charged me interest and default charges of over £2,000 on my loan when they shouldn't have. They have admitted this in a letter. Instead of refunding this money as credit into my account, they decided to reduce my loan balance by the same amount. This is good because it has now put my loan repayments in front by over 18 months. The thing is I would rather they had credited my account and let me decide what I used the money for. Is reducing a customers loan the way things have to be done or can I ask for the money to be credited to my account?

Hi welcome,
The bank I think is very fair on this, the charges and interest were not available for you to use, the loan has been put back
in to the position before the charges/interest were applied, keep up the payments as normal and be free of the loan faster.
nem

[Debt Camel]

Re: Refund for interest and default charges.

There is no way to challenge this, it is known as "set off". And, as nem argues, the bank hasn't been unfair either.

Make sure you check your credit files - the bank should remove any default showing on there as well.

[Peter_Rad]

Just go with the flow. Keep all bank records updated. Bank will not do anything wrong with you.