loan settlement - date passed not collected money.

[whatever1]

Hi,

I wasn’t sure where to post so I have posted here.

I wonder if anyone can please help me.

I have a settlement loan figure of £4091 via a settlement letter.

The letter also said that this had to be completed by 14/07/08.

I have sent a reply back via special delivery on the 02/07/08 ticking the box allowing them to take the money via direct debit.

It has now been over a month since I have sent the letter and they have still not taken the money. I have rang them and they say they are not sure why it hasn’t been done, but that they have received all the correct paperwork.My own bank, actually part of lombard group (!) tells me no request has been made. they would have a record if Lombard had made a request.

I am worried that I may spend the money in my bank account. I don’t mean on purpose, but it is easy to spend a few hundreds not working out what is coming in and going out and still be certain that the loan settlement money is still available.

My question is, how long do I have to give the loan company (Lombard) before I can write and say, look if you don’t take the money don’t blame me. To me a month seems ample time to take the money and discharge my debt.

i would like to thank you in advance for any help.

[Nightmare4banks]

Hi whatever1 and welcome to the forum!

You have come to the right place for help.

I would suggest you do the following:

1.Obtain the creditor's banking details(if you do not already have them) - account number and sort code then transfer the money.Inform the creditor of the intended transfer.If it is with the same bank this can be done immediately.
Otherwise,it would probably take 5 working days.

2.At the same time of course,cancel the direct debit.

3.This way you wont spend the money/get into debt and avoid being charged bounced direct debit fees by both your bank and your creditor.

Problem solved!

I hope you find this information useful.

If you have any more questions,please feel free to ask.

Keep us posted.

All the best!

[whatever1]

Originally Posted by Nightmare4banks

Hi whatever1 and welcome to the forum!

You have come to the right place for help.

I would suggest you do the following:

1.Obtain the creditor's banking details(if you do not already have them) - account number and sort code then transfer the money.Inform the creditor of the intended transfer.If it is with the same bank this can be done immediately.
Otherwise,it would probably take 5 working days.

2.At the same time of course,cancel the direct debit.

3.This way you wont spend the money/get into debt and avoid being charged bounced direct debit fees by both your bank and your creditor.

Problem solved!

I hope you find this information useful.

If you have any more questions,please feel free to ask.

Keep us posted.

All the best!

hello nightmare4banks (!)

thank you for the quick reply.

I have already considered this. however, this is the problem i have with depositing any money into their account. the last time i did make an extra payment, despite having told me i could pay off extra, they simply held the money and continued to deduct monthly payments from the overpayments. As though they were holding the money for me to pay my monthly payment with!

thank you for replying though.

[Nightmare4banks]

whatever1,

No problem! You are more than welcome!

In reply to your last post and in my view:

1.If you are settling the loan - you have nothing to worry about but make sure you cancel this mandate for the settlement amount plus any other mandate that you may have had that was used to pay the monthly instalments.

2.Once you pay the settlement amount you wont owe your creditor a bean unlike in the past when any other sums other than the monthly instalments would have been used to reduce the debt.

3.I forgot to mention that you should notify your creditor in writing(send the letter by recorded delivery and keep the recorded delivery/post office receipt in a safe place) that have cancelled the mandate because it may try to charge you later for bounced direct debit fees should it try to debit your account under the mandate - Be safe rather than sorry!

So relax and do what I have already suggested to you in my last post!