Can a Bank force me to default on a loan?

[dax]

i have had an account that closed down

Withing that account i had a credit builder loan where i paid into it each month.

The bank have told me because they closed my account that they would have to send me a letter saying I defaulted on the loan.

I am able and want to pay the loan off.

Can the bank force me to default on the loan or am I protected by the consumer credit act?

Many thanks.

[Still Waving]

Is this related to your other post? Why are you starting multiple threads? From the (lack of any) detail provided above, a realistic comment is difficult.

[dax]

It's stems from the same issue but a different problem.

It's a simple question.

If a bank closes your account and you have a credit builder loan.

Can they force you to default on your loan or not? They sent me an email saying that they would be sending me a letter informing me that I have defaulted on the loan. I want to pay the loan to build my credit. I have the funds to pay it back.

The bank in question is Monese.

Having read their terms and conditions they are not the issuers of the loan it's a different company.

So what's my best recourse?

[Still Waving]

So it's not a conventional loan, is it? You pay money into a 'loan account', and at the end of the relevant period you get access to the monies you have paid in (ie saved). So not quite a simple question.


"If you miss a payment, we’ll need to report your account in arrears to the credit agencies. We’ll give you the ability to catch up on one missed payment, but missing payments can have a big negative impact on your credit score and history. If you miss 2 consecutive payments, we will close your credit builder automatically and return all the payments you’ve made to your Monese GBP account. This is a safeguard to make sure your Credit History doesn’t get as severely impacted.

If your circumstances change and you can’t make any more payments, then we recommend closing your Credit Builder loan in your Monese app as soon as possible. Missing repayments will make potential lenders believe that you’re not able to keep up with commitments."