Loan Settlement Advice

Financial Chat
1

Just looking for a bit of advice from you guys.
I’ve just settled off a loan after obtaining a Loan Settlement figure from the said company. I obtained this a few weeks ago and have just got round to clearing it today.

I have a Direct Debit due out in a few days for the loan in question which they are now telling me I am liable to pay. They are now telling me the settlement quote was including the final payment which was never explained.
The app shows the settlement figure paid and has a balance of £0 next to it.
It then has a further transaction with the monthly DD value again showing a balance of £0.

Are they correct or am I right in what I am saying?

2

Some companies apply the DD to the account when they request it a few days earlier - they’d then reverse this if it was later rejected etc.

They could well be right if that DD has already been factored in. You’re account will likely show as in credit though after the DD has gone through if that’s not the case so you’d be best off leaving it and checking after a few days.

3

Unfortunately yes, they’re correct.

When companies issue a settlement quote, it’s standard practice that they include all payments that were due in the settlement quote period.

So for example you normally pay by DD on the 1st. You ask for a settlement quote on the 14th of the month before. The quote might last for one month, until the 14th of the next month. The figure assumes the DD payment is to be taken.

I’ve had a pretty heated row with a company that didn’t explain this properly. The figure they give makes the assumption that all DD’s in the quote period will be paid on time. But it is not written in any of their T’s & C’s.

4

i had similar on a car, I paid it off and cancelled the DD then a few weeks later got a phone call telling me I owed them the final DD amount.

She did say it happens all the time.

5

I’ve had this in the past too, although thankfully I was told by the chap on the phone that it did include a final direct debit payment and not to cancel the mandate until it was taken. Seems this should be something they should tell you automatically, it shouldn’t be a surprise.

6

So I’ve just phoned the company in question rather than live chatting and they have advised I have to contact my bank and cancel the DD for the next few days as it’s not due after all!

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7

That worked out really well for you! - pays to double check.

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