The natural end of a loan - Standing order cancellation

H

Happy_Harry

Registered User
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277
The wife had a loan of which the last repayment was due end of September this year- happy days ..

However bank has continued to withdraw installments in October and November.. They are stating the wife should have canceled the standing order for this purpose.

I am sure she'll get her installments back , but what about interest or the fees for going over the limit - something that wouldn't have happened if the installments had actually stopped.
The bank she has her current account with is the same as the loan provider.
I have paid off loans in the past (same bank) and at the same time the installments stopped, so there doesn't seem to be consistency.

If banks insist on standing orders being used to pay off loans- surely there will be more people in this position, where loan has been paid off but standing order hasn't been canceled by the customer ?

Anyone with any similar experience ?
 
If you were paying by standing order, the payments from your account are instigated by you, & you are instructing your bank to debit your account in favour of whoever you are paying the money to, so the onus would be on you to cancel the instruction to your bank.

If you were paying by direct debit the payments are instigated by the originator (the bank/business who you owe the money to), they present the direct debit from their end & it’s deducted from your bank account, so the onus is on them to cancel/stop presenting it.
 


Right on the money Papercut. Onus is on the instigator.
I have seen standing orders continue for years longer then they should have.
 
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