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direct debit loan payments not being asked for.... what to do??
Hi All. Not sure where this thread belongs, Mods please feel free to move it if appropriate.
In July this year I took out a loan for 8K with the Halifax (or HBOS as they are now). I agreed to pay back £250 a month, the total amount repayable £9100.
I set up a direct debit from my Halifax current account for the payments to be taken monthly, starting in August.
At this time my mother was diagnosed with terminal cancer, and I just presumed payments were being taken as and when. I never logged on to check as I've been completely pre-occupied with mum etc.
Sadly my mum has now passed away, and I'm beginning to tackle the mountain of junk that is my life. I've logged onto my internet banking and although the direct debit is there and set up, they have never taken a payment from my account!
Now once we've completed probate etc, I will be in a position to pay back this loan in full, HOWEVER I will have to pay back £9100 as opposed to the 8k I borroed (or that's what I understand from the loan agreement anyway).
1. Now then, is there a way I can only pay back the 8K I borrowed given that they've breached their side of the contract by never taking payments from my account? Is this a valid argument do you think?
2. Will the interest on the loan be higher than they originally stated given that they're now £750 down in payments? (If they'd have taken the payments when they should have done that's how much I'd have paid by now).
3. Should I wait until I have the money to pay back before I flag this mistake to them?
Advice all appreciated, expecially on how to b*ll*ck them for their mistake! Luckily I was keeping the account in credit especially for the payments so it won't be a huge hassle if they suddenly realise.
Re: direct debit loan payments not being asked for.... what to do??
I think on question 1 you will prob have to pay the full amount, but should be able to claim back MOST of the interest as this would be an erf [ early redemption fee] I THINK.
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Re: direct debit loan payments not being asked for.... what to do??
Originally Posted by feefofum
Hi All. Not sure where this thread belongs, Mods please feel free to move it if appropriate.
In July this year I took out a loan for 8K with the Halifax (or HBOS as they are now). I agreed to pay back £250 a month, the total amount repayable £9100.
I set up a direct debit from my Halifax current account for the payments to be taken monthly, starting in August.
At this time my mother was diagnosed with terminal cancer, and I just presumed payments were being taken as and when. I never logged on to check as I've been completely pre-occupied with mum etc.
Sadly my mum has now passed away, and I'm beginning to tackle the mountain of junk that is my life. I've logged onto my internet banking and although the direct debit is there and set up, they have never taken a payment from my account!
Now once we've completed probate etc, I will be in a position to pay back this loan in full, HOWEVER I will have to pay back £9100 as opposed to the 8k I borroed (or that's what I understand from the loan agreement anyway).
1. Now then, is there a way I can only pay back the 8K I borrowed given that they've breached their side of the contract by never taking payments from my account? Is this a valid argument do you think?
2. Will the interest on the loan be higher than they originally stated given that they're now £750 down in payments? (If they'd have taken the payments when they should have done that's how much I'd have paid by now).
3. Should I wait until I have the money to pay back before I flag this mistake to them?
Advice all appreciated, expecially on how to b*ll*ck them for their mistake! Luckily I was keeping the account in credit especially for the payments so it won't be a huge hassle if they suddenly realise.
Many thanks
Firstly, feefofum, my deepest sympathy for the loss of your mother.
To answer question 3 first, definitely do not wait! That can only make matters worse and, possibly, result in you having to pay back more than if you took HBOS to task over their seeming 'negligence'.
I would guess that, although they may well try to charge you a higher rate of interest beacuse of the 'non-payment', they will back down once you explain all the facts surrounding you not realising their mistake earlier.
Equally, I think you've little chance of only paying back the amount you borrowed, despite the error committed by HBOS. Be realistic to yourself, banks make their money (theoretically anyway) by lending money and charging interest on the loan. What you're thinking would be something like committing heresy for a bank!
Why not write to them (write, do not 'phone as there's no record of who said what and when it was said in a 'phone call) and explain the position fully. Even better would be to enclose a cheque for, say, two months payments as well as that way you're showing a willingness to pay which can only count in your favour when you come to settle.
Hope this helps a bit.
Jimbo 44 - always happy to help, but always willing to learn from being corrected too!!! Whilst any advice given may be based upon personal experience, please always be sure you seek guidance from a professional in the particular field.
Never be afraid to try something new. Remember that a lone amateur built the Ark, but a large group of professionals built the Titanic.
A 'click' on the scales is always appreciated if I have helped. Many Thanks!
Re: direct debit loan payments not being asked for.... what to do??
Thanks Guys, I'm rather irritated by the fact I have to sort out THEIR mistake!
What's the difference between an early redemption fee and the full amount of interest? (Apologies for being a dunce). Is it likely that I'll have to pay back the 8K I borrowed, plus the £1300 interest AND an early redemption fee?
Re: direct debit loan payments not being asked for.... what to do??
I'm sorry to hear about your situation.
I'm afraid there is no legeal requirement for them to take payments by direct debit as part of the agreement - they may well insist on one being setup but I'm pretty sure in the terms, you'll find the onus is on you to make sure the paymens are received by x day each month, check with Experian / Equifax if they have made late payment markers against you - if not you may be lucky in that they forgot to start the loan.
Hope all turns out well for you.
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Re: direct debit loan payments not being asked for.... what to do??
May I first of all, add my condolences to you as have the others before me.
Well,what I am going to say is different again from the previous posts. And
the reason is simple. The conditions on recalling a loan are based on the
borrower not paying the monthly sums when the lender puts in their claim.
You are not in breach-they are, by accepting a d/d mandate from you and
failing to act upon it.
I imagine that the Halifax will be only too delighted to hear that you are in
the position of being able to bring the account up to date straight away,and
then carry on the payments as agreed at the start.
You should not be asked to pay anything extra-the mistake is theirs. Indeed,
if they have added anything detrimental on your credit file, you should ask
to have it removed, as you had the money to pay on time had Halifax
asked for it.
The fact that you are the one pointing out their error is also in your favour.
You have had many other things on your plate recently so its hardly
surprising that you missed their mistake till now.
I realise that you have now got a complete set of conflicting responses. Not
for a moment do I believe that the Halifax will react in any way that would
be less than I have described. They will just be so relieved to get back on track and your account brought up to date.
Write to them explaining your situation, confirming that the outstanding amount is available whenever they want it. And point out that should
anyting derogatory have been added to your credit file, you would ask that
it be removed since a simple check of your ccount will reveal that their
funds have always been available to them.
Re: direct debit loan payments not being asked for.... what to do??
Sorry to hear about your mum, mine passed away sadly 2 years ago from cancer, and my dad is now on a short prognosis so I understand what a awful time you are having.
I would in this order.
1. Check credit file for adverse data
2. Contact Halifax and pay missing payments - ask for removal of any adverse data.
3. On original loan agreement it will give you examples of how much you have to pay if you do not go to end of term.
4. Ask Halifax for a settlement figure which will give you a ball park figure of what to expect.
You will not have to pay £1300 plus ERC but a proportion of the interest - obviously you will have to repay the capital. It is a mistake on their part as they haven't hounded you for non payment - but they will catch up with yuou so best to sort it first and stay in the driving seat.
Re: direct debit loan payments not being asked for.... what to do??
Noticed this thread under general, so thought good place to start. If anyone has a suggestion for another thread please tell me. Loans to pay off overdrafts & cards ???
Has anybody else been in the position of taking out loans to pay off overdrafts...or even credit cards.....the level of which themselves have been caused in great part due to bank or card default charges !!
Surely in this scenario, then you should be able to claim back the interest portion of that loan that relates to the paying back of the charges portion of the original overdraft ???
ie; You would not have taken out such a big loan in the first place had you not had all the original charges !!!
You are in effect taking out a loan to repay the charges which were wrong in the first place, and then paying additional (often much higher) interest !!!
Re: direct debit loan payments not being asked for.... what to do??
Hi Photoman, Did you start a new thread with this question? You may get more answers then.
To everyone else, many many thanks for your reply's. I called them and it's all sorted, of course they were superbly nice to me for poionting it out to them, and repayments starting from now with no extra charges for me.
direct debit loan payments not being asked for.... what to do??
as they are now). I agreed to pay back £250 a month, the total amount repayable £9100.
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Originally Posted by feefofum
