A family member told me how their bank withdrew two extra fortnightly payments for a personal loan, after she had finished paying it off. Probably would have kept happening if she hadn’t noticed it and called the bank. Apparently the bank’s system freaks out when the last automatic withdrawal isn’t the exact amount still owing on the loan, and the onus is on the customer to cancel the direct debits. This also happened to my brother a few years ago.
Has anyone else had this happen to them, or do I just come from an unlucky family?
That’s so annoying! Definitely go to the Financial Ombudsman Service if you have any problem getting a refund.
My bank agreed to waive the annual fee for my loan account, but I have to email the bank manager and request it each and every year.
Our bank warned us (decent, I suppose) that we had to notify it in writing not to deduct any more payments when we paid out our mortgage in full. I really don’t believe that their system isn’t up to noticing when the loan has been paid and I think this is just another lurk for getting use of customer’s money. VERY POOR.
Has happened to my husband not by a bank but by a computer lease company. He had no legal recourse.
The financial system is weighted against the general public.