I've not been charged for a loan?

Question

I took out a loan nearly a year ago and, although there was a three month payment 'holiday', the bank hasn't taken any of the repayments out since. Will I get away with paying nothing? Have you ever had experience of a bank coming after you for repayments after they've made a similar error?

Answer 1

You need to contact them as soon as possible, I used to work for a credit card company (among other financial services companies) and it will be in your credit agreement for the loan that the payments have to be made as specified, it is their mistake if they haven't taken the direct debit but in the eyes of the law it is your responsibility to make sure that the payments are coming out when they are supposed to even if a direct debit is set up to cover it.

I had a friend whose car insurance came out of his account via direct debit and one month when the insurance company didn't request the direct debit (there was sufficient money in the account) they cancelled his insurance due to non payment, and as always happens that was two days before he had a bad crash, the insurance company refused to pay out and he was prosecuted for driving without insurance, the fact that it was down to the insurance company's mistake made no difference.

Banks have to pay out direct debits by law (as long as there is enough money to cover it in the account) but if the loan company doesn't request the payment (which is what will probably have happened here, even if your loan is from the same bank as your account it will usually still behave as if it was from a seperate company, and may even be from a separate company) then your bank isn't at fault and you won't have much legal backing to cover you.

If you contact them before they contact you, then you will be in a much better position to ask them to refund any charges/penalties that they have applied to the account, and it will show as missed payment's on your credit record so the longer you leave it the worse it will look. A few missed payments on your record are not really a problem, especially if you add a note explaining why they were missed and that it was down to a bank error (visit the experian or equifax websites to do this, and also to check your record) but if it goes on for a while it will count against you when you are trying to obtain credit in future.

The sooner you contact them the better, it will save you a lot of time and money in the long run, because if you miss a certain number of payments they can request that the loan be repaid in full immediately (this is a standard clause, check your credit agreement as it may not apply but you can bet it will), and although you should still be able to sort it out, it will be a lengthy and stressful process.
Hope this helps, and good luck getting it sorted out.
James.

Answer 2

lucky guy- but karma will catch up. There is the fact that when a loan is taken out that they do take your bank details to make sure direct debits get taken out. So i would try and blame the bank for not taking the payments as instructed by the dd- by law they are to take the money on order of a dd so you're still safe in terms of blame. They cannot downgrade your credit scoring based on an error they've failed to recognise on time. So long as you have been putting away the money that you were supposed to have been paying them on a monthly basis in a high interest account- i think you'll be good to pay it back and you'll have accumulated some interest on the 'free' money you got from the loan. You're safe for now unless the british banking code of practice has other little things that read between the lines.

Answer 3

If there is one on your section, attempt the interior of reach credit Union. They focus on helping those who're in monetary situation., the purely situation is you should have an section connection to the area (eg you stay interior the area,, or are employed interior the area) they don't value up the front prices, and their charges of pastime are caped at 25%. If there is not any credit union, there are a kind of finance organizations that settle for those with unfavorable credit ratings, not all value up the front prices, yet they do value charges of pastime of countless hundred % or perhaps higher. it really is staggering to exhaust all different potential earlier eliminating unfavorable credit ratings loans, as those money owed have a tendency to snowball out of control.

Answer 4

Sooner or later the bank will realise it's mistake and then you are going to suffer!!!

It will be your fault. You should have paid anyway. You should have told them.

I hope you have been saving enough money for the repayments you have missed, because they will want these, plus penalties for not warning them, plus blood, no doubt, eh?

Answer 5

I would be sorely tempted to not say anything,after all they make millions off us,but I would be worried about them charging me interest on all the missed payments.

Its up to you,if you come clean you will always wonder if you may have got away with it.

Answer 6

When they do an audit they will ask for all the overdue repayments at once.

Answer 7

I would tell them has the interest will be mounting up.When they do discover the error they will come after you.Plead ignorance & tell them you have only just realised that way you can fight any added interest they will slam on.Good Luck

Answer 8

why worry babe keep your mouth shut and say nothing, its time someone got something from the banks. Lets face it they cant charge you anymore if they realise , it was there fault. lolol good on you.

Answer 9

just do what i do, deal with it when the time comes, when those robbing B****rds figure out there mistake just blame them!
Its up to them to take the money
As far as your concerned, you thought the money was being taken out!

Good luck.

Answer 10

put the money away for now, in case someone remembers... you'll get interest and your credit rating will soarrrrrrrr....

on your 65th have a blow out? sounds good to me :-)