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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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Can a bank still register a debt against you with CRAs when

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Can a bank still register a debt against you with CRAs when they close your loan account less rebate and you made the full payment before the due date please? The debt they are referring to is the rebate they gave me because the account was closed 8 months into a 3 year loan tenure. Thank you
JA: Where are you? It matters because laws vary by location.
Customer: In the UK
JA: What steps have you taken so far?
Customer: I only called in to ask why and the person i spoke to could not offer explanation and said she would raise a complaint for me
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I will be able to discuss more with the lawyer, thanks

Hello my name is ***** ***** I will help you. I am just reviewing your question. This is an email service so there may be delays when responding.

Can you please explain your situation a little more?

Customer: replied 1 year ago.
I had 3 accounts with my bank and unfortunately in the process of getting foreign exchange, i was paid from a questionable source, affected several people. The bank had its investigation for over 6 months during which my accounts were frozen except loan which i was still paying into. I was eventually cleared but because my account was "compromised", bank opted to end banking relationship closing all my accounts including loan account. I was paid out my money in the personal accounts, and soon received a letter to pay the outstanding loan amount less rebate because the loan was supposed to last 3 years but being closed in less than a year. It stated if i did not pay before the said date, they will close my account and their debt payment services will get in touch with me and the default will be disclosed to CRAs. I made the payment before the due date then received a letter from their debt payment services 2 weeks later stating "i had an arrears in the exact sum of the rebate, to call them to discuss payment of the balance, and the details of the debt registered with CRAs" with its consequences.
When i called same day to ask why they are asking me to pay when the amount is clearly the rebate (interest that would have amounted over the remaining loan term), the individual could not explain why it was referred to them, only offered to raise a complaint on my behalf.
I have not heard back from them for 3 weeks and i clearly feel wrongly discredited which could affect my credit and lending abilities. I will like to know what my options are. Thanks

When you say rebate, rebate for what?

Customer: replied 1 year ago.
The loan was for 3 years. I was asked to clear it 8 months in to close the account for the stated reason. The rebate i believe was the monthly cummulative interest that would have been due over the remaining 26 months.
Customer: replied 1 year ago.
28 months rather

Had you ever gone into arrears?

Customer: replied 1 year ago.
I did a few times for a few days because with my account frozen and direct debits cancelled, I had to physically go to the bank each time my wages were paid with an Id to give a mandate for the loan for the month to be debited from my most recent wages and then withdraw the rest of it as cash. My access was restricted only to wages or benefits (I'm on none) during the freeze period

Ok - so you were in default.

Have you made a formal complaint to them at this stage and had a final response?

Customer: replied 1 year ago.
I complained thrice about the delay in their investigations and that it was affecting my ability to pay all my bills and expenses. Got a detailed response once stating I have to wait for the review to be completed and decision taken

Does it say its a final response?

Customer: replied 1 year ago.
I got an email after my 2nd complaint late last year that i would be getting a "final response" and 4 days later an email came in with the response. It stated if I was not satisfied I could refer to ombudsman. I didn't and opted to be patient.
I did not hear any response after the 3rd complaint i asked a branch staff to register on my behalf about a month later.
My last complaint 3 weeks ago is regards ***** ***** CRA information of the supposed rebate
Customer: replied 1 year ago.
It's the final response I referenced above saying I have to wait till the end of the review or refer to ombudsman if not satisfied

You need to write to the Company and make a formal complaint.

They will investigate the matter and report back to you.

If they do not uphold it, then you can go to the Financial Ombudsman.

They offer a free, independent service and can examine your complaint at:

www.financial-ombudsman.org.uk

That should resolve it for you.

Can I clarify anything for you about this today, please?

If not, I would appreciate a 5-star rating for my answer, by clicking the button at the top of the screen. I am not paid for my time unless you rate.

If you need anything further I am available for a follow up at no extra cost.

Customer: replied 1 year ago.
Thanks for your response, I will surely do your rating - even more than 5 star if possible - smiles.
I have a surprising update: I missed a call from the bank today as was at work, then received a message to call back as it was concerning my latest complaint 3 weeks ago as regards ***** ***** I couldn't and just got home to a mail from them, apologising for their error saying they have written CRAs to remove the negative report and offering a huge compensation: £50!!!! You read that right, £50!! My response by mail awaited.How incredible! Because of the deadline to pay back that I was given, despite the pandemic and economic effects I struggled to raise the loan amount, a 5 figure sum mainly so as to avoid CRA being informed if I did not, they did and I have been offered this great compensation.
Its definitely unacceptable and that will be my response. What would be your advice owing to the fact they have acknowledged their error?Thanks

See what the compensation is.

Does that help?

Customer: replied 1 year ago.
Its £50. Thats why I sarcastically stated its huge

You need to write a letter, set out your losses and request compensation within 30 days or say you will go to Court. This is called a pre-action protocol letter of claim. You should make sure you send this signed delivery and keep a copy. You must give 30 days warning before going to Court.

If they do not compensate you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 https://www.gov.uk/government/publications/form-n1-claim-form-cpr-part-7 and take it to your local County Court.

The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.

If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value, you would need representation for trial.

Can I clarify anything for you about this today, please?

If not, I would appreciate a 5-star rating for my answer, by clicking the button at the top of the screen. I am not paid for my time unless you rate.

If you need anything further I am available for a follow up at no extra cost.

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