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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Bank Error, took out loan from Bank on a 15 years term loan

Customer Question

Bank Error, took out loan from Bank on a 15 years term loan with 3 years interest only and then 12 years capital repayment to repay the loan at 144 payments at X amount, after having paid the interest for 3 years, the bank wants me to make higher payments of Y amount ? they admit they made a mistake and have apo0logised, a clause 4.2 says 'All notifications, determinations and calculations given or made by the Bank will be binding except in case of manifest error ' this error was NOT discovered for 3 years and only when capital repayments were to start. this error was NOT so obvious so how can it be manifest. Bank made error by instead of calculating repayments by 12 years they calculated by 15 years, are they right to change my repayments? as I accepted in good faith ? and it's supposed to be a binding contract.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.

Alex Watts :

Have you yet complained to the Bank or Ombudsman please?

Customer : Hi Alex Zed here
Customer : Hi Alex. Zed here
Customer : Hi Alex.
Customer : Hi Alex I have complained to the Bank and they have given me a final response,they say clause 4.2 allows them to rectify their mistake . If this is a material fact then does this allow the Bank to do. I want the Bank to stick to the terms of the loan. Should I argue this is an error but not manifest (obvious) error. No one noticed this for 3 years.
Alex Watts :

You now therefore need to complain to the Financial Ombudsman. They are independent of the Bank and can investigate your complaint. If the Ombudsman does not uphold the complaint then it is likely that any Court action would fail. The Ombudsman can be located online at: http://www.financial-ombudsman.org.uk/

Alex Watts :

This is the next step you should take if they have given a final response.

Alex Watts :

Can I clarify anything for you about this please? Alex

Customer :

I am now taking to FOS however I wanted to be sure that the bank should stick to its terms

Customer :

what is your thoughts- is the bank right or not ?

Alex Watts : The bank should stick to its own terms, otherwise they are in breach of contract and you could sue for loss and damage.
Alex Watts : Does this help you today? Alex